Guyana seeks to diversify with Total-Qatar Energy-Petronas consortium
Changing dynamics: Away from Exxon dominance and opening the market to competition.
Trade and diplomatic implications: Guyana is looking to diversify its partnerships (spreading risk).
Geopolitical significance: Escalating tensions in the region.
Philippe Jackson is a Partner and Political Risk Advisor for Guyana and Trinidad & Tobago.
On November 11, the three major oil companies signed a five‑year Production Sharing Agreement with the government of Guyana for shallow‑water Block S4 off Guyana’s coast, with TotalEnergies having the biggest share (40 %) and being the project operator. Qatar Energy holds a 35 % share, and therefore, Petronas holds 25 %.
Although Block S4 is a shallow‑water, early‑stage prospect, a discovery there could modestly augment global supply while giving TotalEnergies, QatarEnergy and Petronas a strategic foothold in Guyana’s emerging oil sector. Their upstream assets would complement long‑term growth plans for the region.
To date, Guyana’s production has been dominated by the ExxonMobil‑led consortium. Introducing a new consortium injects competition, dilutes dependence on a single partner and signals confidence in Guyana’s regulatory framework.
ExxonMobil has not publicly commented on the new agreement; instead, it has focused on advancing its own projects. In May 2024, after Guyana approved the TotalEnergies‑QatarEnergy‑Petronas bid for Block S4, ExxonMobil pursued a parallel shallow‑water prospect, Block S‑8, but withdrew in November of the same year. According to Vice President Bharrat Jagdeo, ExxonMobil was looking to use the area for carbon capture and storage, which Guyana is not ready to pursue at this stage.
Economically, the Block S4 deal will immediately add a $15 million signing bonus to the state budget. The fiscal regime includes a 10 % corporate tax on net profit, a 10 % royalty (up from the 2 % rate under ExxonMobil’s original PSA), a 50 % share of profit after cost‑recovery, and additional revenue from onshore services that foreign contractors will require, thereby broadening Guyana’s income streams.
Why diversification matters
The old adage “don’t put all your eggs in one basket” captures the core logic: spreading risk makes a country more resilient.
Risk mitigation - By applying Guyana’s energy-diversification strategy, bringing in new partners for Block S4, Guyana reduces its reliance on a single, U.S.-led consortium, lowering geopolitical and operational exposure. Therefore, it gives Guyana leverage in negotiations with all partners.
Trade diversification - Alongside the oil‑sector outreach, Guyana has signed MOUs with Turkey, Japan and Malaysia covering construction, transport and logistics. These agreements aim to upgrade ports, roads and airports, enabling the nation to absorb the surge in export traffic from the new offshore fields and other growing industries. The same diplomatic channels are now being used to source equipment, ship‑building contracts and downstream services from a broader pool of suppliers, expanding bilateral trade possibilities and cushioning the economy against regional supply‑chain shocks.
Local content and investment structure - The U.S. and French diplomatic upgrades have created dedicated capacity‑building units that run workshops for Guyanese engineers, fund university scholarships and sponsor joint research on low‑carbon hydrocarbon extraction. Every newly opened mission also hosts an investment‑promotion desk that works with the Ministry of Finance to channel sovereign‑wealth‑fund inflows, secure export‑credit guarantees and attract private‑sector financing for oil‑field development. This blend of skill development and streamlined financing reinforces local content while widening the country’s investment base.
Beyond oil and gas production, ExxonMobil has been working with the Guyanese government to propose an actionable plan for the country’s infrastructure development in order to diversify its industrial capacity and attract foreign investment. Alongside EY, ExxonMobil hosted Guyana’s first Berbice Development Summit to discuss positioning the Berbice region as a global hub for sustainable industrialisation.
Geopolitics and diplomacy
From a geopolitical perspective, Guyana is deliberately spreading its exposure by bringing together a European player (TotalEnergies), a Gulf‑state partner (Qatar Energy) and a Southeast‑Asian firm (Petronas). This multi‑regional consortium dilutes any single‑country risk, steadies investment flows, and cushions the country against geopolitical shocks.
Recent national development has encouraged a wave of diplomatic activity: Malaysia, Turkey, Japan, France, Qatar and others have opened embassies in Georgetown, anticipating a growing presence of their nationals and businesses. Their arrival signals strong confidence in long‑term relations with Guyana.
In regard to current regional tensions between Venezuela and the US, diversifying partners could substantially mitigate risks of attacks and sabotage of offshore assets belonging to other foreign partners and further distance (figuratively) Guyana from the tensions and potential conflict.
Guyana’s move to broaden its partnership mix is driven by a long‑term economic strategy, while it still maintains robust bilateral ties with the United States, including trade alliances and defence cooperation.
New diplomatic footholds
Guyana now enjoys diplomatic backing from three major oil producers, bolstering its bargaining power and easing access to financing and technology. The arrival of French (TotalEnergies), Qatari (QatarEnergy) and Malaysian (Petronas) investors triggered the opening of dedicated diplomatic desks in Georgetown. TotalEnergies can draw on French export‑credit guarantees and the France‑Guyana Energy MoU to streamline regulatory approvals; Petronas benefits from the Malaysia‑Qatar Joint High Committee, which provides co‑financing, shared risk‑service contracts and a pathway to meet the PSA’s local‑content targets; and QatarEnergy secures a seat at the Guyana‑Qatar High‑Level Dialogue, ensuring the 10 % royalty, CCUS provisions and Qatar’s low‑carbon‑hydrocarbon strategy are fully integrated into the Block S4 plan. This combined capacity effectively helps Guyana to broaden its diplomatic outreach beyond the United States.
In sum, the diversification of partnerships and the emergence of “energy‑sector embassies” are reshaping Guyana’s geopolitical landscape. By balancing risk across several regions and embedding capacity‑building, infrastructure and financing mechanisms within diplomatic channels, Guyana is building a more resilient foundation for its future prosperity.