Recently, France’s TotalEnergies, in partnership with QatarEnergy and Malaysia’s Petronas, has officially signed a production sharing contract for the S4 block offshore Guyana. This agreement marks TotalEnergies’ entry into offshore exploration in Guyana as an operator for the first time, holding a 40% working interest in the block.
In recent years, Guyana has emerged as one of the world’s most sought-after frontiers for oil and gas exploration, with over 11 billion barrels of oil resources already confirmed in the region. Its immense resource potential continues to attract the attention of international energy companies. In July this year, Chevron completed a $53 billion acquisition of Hess Corporation, securing a 30% stake in Guyana’s Stabroek block, thereby successfully gaining a foothold in Guyana’s burgeoning oil and gas sector. With TotalEnergies’ entry, major oil giants are now gathering and competing in the region, which is set to reshape the energy future of this South American nation.
01. Block S4 and TotalEnergies’ Ambition
The S4 block acquired by TotalEnergies is located approximately 50 to 100 kilometers off the coast of Guyana, covering a total area of 1,788 square kilometers in shallow waters. This block lies within a proven hydrocarbon-bearing basin that has yielded some of the world’s largest oil discoveries over the past decade.
As the operator, TotalEnergies holds a 40% working interest in Block S4, while its partners QatarEnergy and Petronas hold 35% and 25% stakes respectively. This equity distribution reflects TotalEnergies’ operatorship and leading position in the partnership, while also demonstrating its global partnership strategy.
According to the agreement, the initial work program for Block S4 includes acquiring 2,000 square kilometers of 3D seismic data to evaluate the block’s exploration prospects. This preliminary exploration is crucial for understanding the subsurface geological structures and identifying potential drilling locations.
Nicolas Mavilla, Senior Vice President of Exploration at TotalEnergies, stated that “Block S4 fully aligns with our core strategy of pursuing substantial, low-cost, low-emission resources.” Mavilla’s remarks highlight TotalEnergies’ strategic focus — seeking cost-effective oil and gas resources with relatively low carbon emissions amid the ongoing energy transition.
It is reported that TotalEnergies plans to commence the acquisition of 2,000 square kilometers of 3D seismic data in the first quarter of 2026 and drill the first exploration well by the end of 2027, aiming to achieve a commercial discovery within the contract period.
02.Giants’ Race: Guyana Emerges as Global Exploration Hotspot
Guyana’s ability to attract international energy giants like TotalEnergies is largely attributed to its remarkable track record of oil and gas discoveries in recent years. Since 2015, ExxonMobil and its partners have made over 30 oil discoveries in the Stabroek block offshore Guyana, rapidly transforming the nation into a major emerging global oil producer.
Currently, all of Guyana’s oil production comes from the Stabroek block. It is reported that with the Yellowtail project expected to commence production in the fourth quarter of 2025, the block’s total production capacity will increase to 940,000 barrels per day. ExxonMobil holds a 45% interest in the block, Chevron holds a 30% stake through its acquisition of Hess, and CNOOC holds the remaining 25%.
At the end of September this year, ExxonMobil announced the final investment decision for the block’s seventh development project (Hammerhead), bringing the consortium’s total investment commitment in the block to $60 billion and advancing its goal of “achieving production of 1.7 million barrels of oil equivalent per day by 2030.”
The Guyanese government is actively promoting diversification in its oil field development to prevent market dominance by any single company or consortium. Natural Resources Minister Vickram Bharrat stated that apart from the agreement with TotalEnergies, at least three additional exploration block contracts will be signed this year. The government is also in negotiations with the ExxonMobil consortium regarding exploration terms for another block secured during the 2023 auction.
Regionally, the Guyana-Suriname Basin has witnessed substantial oil and gas exploration activities in recent years, with Guyana alone discovering over 13 billion barrels of oil equivalent in the past decade. As operators continue to explore and develop Guyana’s resources, its coastal neighbor Suriname is attracting growing attention.
03. The Multifaceted Impact of TotalEnergies’ Market Entry
The Guyana project constitutes a crucial component of its global exploration strategy. From a regional perspective, TotalEnergies’ entry is likely to accelerate exploration activities across the entire Guyana-Suriname Basin.
Nevertheless, TotalEnergies’ involvement has undoubtedly injected new competitive vitality into this emerging South American oil producer. For international markets, the diversified development of this new energy hub will present fresh investment opportunities for global energy capital, while simultaneously contributing stable supply growth to the crude oil market amidst the ongoing low-carbon transition.
Post time: Nov-27-2025