Dateline: PARIS, November 11, 2025 – TotalEnergies (TTE.PA) signed a production sharing contract for offshore Guyana Block S4 with QatarEnergy and Petronas, expanding its South American exploration footprint.
The agreement positions the French energy major as operator of the shallow-water block, potentially adding to investor confidence in TotalEnergies’ low-cost resource strategy amid global energy transition pressures.
Key Takeaways
- TotalEnergies becomes 40% operator of Guyana Block S4
- Five-year exploration agreement with QatarEnergy, Petronas partnership
- Shallow-water location offers lower development costs potential
Partnership Structure
Under the production sharing contract signed with Guyana’s Ministry of National Resources, TotalEnergies holds a 40% operating stake1. QatarEnergy owns 35% while Malaysia’s Petronas holds the remaining 25%2.
The Block S4 license covers shallow offshore waters, which typically require lower capital expenditure for development compared to deepwater projects. This aligns with TotalEnergies’ strategy to focus on low-cost, high-return exploration opportunities3.
Market Context
The deal comes as international oil companies increasingly compete for access to Guyana’s prolific offshore basins. ExxonMobil (XOM.N) has already made significant discoveries in the Stabroek block, establishing Guyana as a major emerging oil producer.
TotalEnergies shares have gained approximately 12% year-to-date, outperforming the broader European energy sector. The company’s focus on profitable upstream investments has resonated with investors seeking exposure to traditional energy assets.
Exploration Timeline
The five-year exploration phase will allow the consortium to assess Block S4’s hydrocarbon potential through seismic surveys and potential drilling activities. Success could lead to commercial development agreements with the Guyanese government.
Guyana has emerged as one of the world’s fastest-growing oil producers, with production expected to reach 1.3 million barrels per day by 2030. The country’s favorable fiscal terms and stable regulatory environment have attracted multiple international operators4.
Strategic Implications
For TotalEnergies, the Guyana entry represents geographical diversification beyond its traditional African and Middle Eastern operations. The company has been selectively adding upstream assets while maintaining disciplined capital allocation.
QatarEnergy and Petronas bring complementary technical expertise and financial resources to the partnership. Both state-owned companies have been actively expanding their international exploration portfolios through strategic joint ventures.
Industry Outlook
The signing ceremony was attended by senior government officials, underlining Guyana’s commitment to attracting foreign investment in its energy sector5. The country’s transparent licensing process has helped establish it as a preferred destination for international oil companies.
Analysts view Guyana’s continued licensing rounds as positive for global energy security, particularly as traditional production regions face declining output. The Block S4 agreement demonstrates sustained industry confidence in the South American nation’s hydrocarbon potential.
Not investment advice. For informational purposes only.
References
1Reuters (November 11, 2025). “TotalEnergies, QatarEnergy and Petronas receive green light to explore Guyana block”. Reuters. Retrieved November 11, 2025.
2TotalEnergies (November 11, 2025). “Guyana: TotalEnergies Becomes Operator with a new Offshore Exploration License”. TotalEnergies Press Release. Retrieved November 11, 2025.
3TipRanks (November 11, 2025). “TotalEnergies Takes Lead in Guyana Offshore Exploration”. TipRanks. Retrieved November 11, 2025.
4Stabroek News (November 11, 2025). “Gov’t signs exploration pact with TotalEnergies, QatarEnergy, Petronas”. Stabroek News. Retrieved November 11, 2025.
5World Oil (November 11, 2025). “TotalEnergies takes operatorship of new offshore Guyana exploration block”. World Oil. Retrieved November 11, 2025.