(MENAFN) Deodat Indar, the Minister of Public Works of Guyana, announced that the government of the Latin American nation has given its approval to an offer presented by a consortium comprising Qatar Energy, Total Energies, and Malaysia's Petronas to undertake exploration activities in an offshore oil concession area. This decision marks a significant development for Guyana, a country renowned for its substantial oil discoveries, marking the largest in nearly a decade. Last September, Guyana initiated its first competitive auction by offering 14 offshore concessions, attracting bids from various entities, including the consortium involving Qatar Energy, Total Energies, and Petronas, as well as a group led by ExxonMobil, which has been overseeing the nation's oil production thus far.
While Guyana has yet to finalize any concession awards, Minister Indar disclosed during the Offshore Technology Conference held in Houston that the government has accepted the offer submitted by the aforementioned consortium for the S-4 shallow water area. Currently, negotiations are underway to establish the terms of a production-sharing agreement with the Ministry of Energy. Minister Indar emphasized that the consortium has sought approval to commence exploratory activities, a request that has been granted by the Council of Ministers. However, discussions are ongoing to formalize a production-sharing agreement with the Ministry of Natural Resources.
This approval signals a pivotal step forward in Guyana's efforts to harness its vast offshore oil reserves and leverage strategic partnerships with leading energy players. As the country continues to navigate its burgeoning oil sector, collaborations with international entities like Qatar Energy, Total Energies, and Petronas underscore Guyana's commitment to responsible and sustainable development in the energy domain.
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