Guyana has officially signed its first Production Sharing Agreement (PSA) under the country’s new Petroleum Activities Act and updated fiscal regime, securing a US$15 million signing bonus from a consortium led by TotalEnergies (40%), QatarEnergy (35%), and PETRONAS (25%) for Shallow-Water Block S4.The signing, a key outcome of Guyana’s inaugural licensing round launched in 2022, marks the dawn of a new era in the nation’s oil and gas sector, introducing stricter fiscal terms, a 10% corporate tax, stronger environmental safeguards and enforceable penalties for non-compliance with work programmes.Speaking at the ceremony on Tuesday at the PEgasus Corporate Suites, Minister of Natural Resources Vickram Bharrat hailed the event as a testament to the Government’s success in building a world-class petroleum governance framework while maintaining investor confidence.“This is the first agreement we are signing under the new fiscal regime. The negotiations have produced a US$15 million signing bonus that will be paid directly into the Natural Resource Fund within 50 days,” Minister Bharrat stated.“We have ensured strict transparency and accountability. Every inflow is publicly declared and submitted to the National Assembly quarterly. This is the kind of responsible management that sets Guyana apart among new oil-producing nations.”The S4 Block covers approximately 1,788 square kilometres in shallow waters between 50 and 100 kilometres off Guyana’s coast. TotalEnergies will operate the block on behalf of the consortium, which was adjudged the most responsive bidder during the competitive licensing process.Director of the Local Content Secretariat, Michael Munroe, described the agreement as a milestone achievement and the culmination of months of rigorous negotiations under the strengthened legislative regime.“The S4 consortium was deemed the most responsive bidder, and throughout the process, they demonstrated professionalism and a willingness to find common ground,” Munroe said.“What we are witnessing today is the manifestation of hard work — a new fiscal package that introduces corporate taxation, clear decommissioning and liability provisions, and a range of new fees and social obligations. It sets the tone for how future relationships in the sector will be built.”Munroe emphasised that the new PSA framework imposes penalties for failure to complete work programmes, ensures decommissioning liabilities are fully accounted for, and requires companies to make rental and social payments that are non-negotiable.Minister Bharrat noted that the arrival of QatarEnergy and PETRONAS, alongside TotalEnergies, reinforces Guyana’s growing reputation as one of the world’s most attractive frontier basins.“Already, we have Exxon, Chevron, and CNOOC in the Stabroek Block, and now we are welcoming QatarEnergy, TotalEnergies, and PETRONAS in S4,” he said.“These are not small or medium players — they are giants in their own right. Their presence underscores global confidence in Guyana’s regulatory systems, our transparent processes, and our local content legislation.”The Minister lauded the technical teams at the Ministry of Natural Resources for their relentless work in crafting and negotiating the new agreement. He noted that Guyana’s petroleum production has surged from 80,000 barrels per day in 2020 to 920,000 barrels currently, a feat unmatched by any new oil producer globally.Bharrat reaffirmed the Government’s policy of ensuring that petroleum revenues directly benefit all Guyanese through investments in infrastructure, education, healthcare, housing, and job creation.While acknowledging rising global concerns over fossil fuels, the Minister asserted that Guyana remains committed to responsible resource development alongside its Low Carbon Development Strategy (LCDS 2030).“We are proud to say that we are managing our oil and gas sector responsibly, maintaining our high environmental standards while expanding opportunities for our people,” he said.“Guyana has proven that economic development and environmental sustainability can coexist. We will continue to explore and produce, but we will do so in a sustainable and transparent way.”The S4 agreement stems from the 2022 Guyana Licensing Round, which invited global energy companies to bid for available offshore blocks under the newly modernised Petroleum Activities Act and the strengthened Local Content framework.The S4 Block will be operated by TotalEnergies, with QatarEnergy and PETRONAS as partners. The consortium’s exploration activities will adhere to international best practices for environmental protection and community engagement.The Government has reaffirmed that all proceeds, including the US$15 million signing bonus, will be transparently managed through the Natural Resource Fund, in keeping with Guyana’s commitment to prudent fiscal management and long-term national development.The post Guyana secures US$15M signing bonus as first petroleum agreement inked under new legislative framework appeared first on News Room Guyana.