((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added comments from Minister of Energy and broader investment to paragraphs 6 and 7) by Marianna Parraga and Curtis Williams
Guyana’s cabinet has approved a bid by a consortium including QatarEnergy QATPE.UL , TotalEnergies TTEF.PA and Malaysian state-owned Petronas PETRA.UL for an offshore oil block, a minister from the country said on Wednesday. South America.
Guyana, where the largest quantities of oil have been discovered in almost a decade, offered 14 offshore blocks in September in its first competitive auction that attracted bids from the consortium, as well as a group led by Exxon Mobil XOM.N which has been responsible for all of the country’s production to date.
Guyana has not yet allocated any of the blocks to .
Having accepted the offer from QatarEnergy Group, TotalEnergies and Petronas for the shallow water Block S-4, the government is currently negotiating the terms of a Production Sharing Agreement (PSA) with the Guyana Ministry of Energy , Public Works Minister Deodat Indar said at the offshore technology conference held in Houston.
“They have asked for the green light for their exploration activities,” Mr. Indar told Reuters. “The cabinet has agreed, but they are working on their PSA with the Ministry of Natural Resources
Vickram Bharrat, Guyana’s natural resources minister, told Reuters the negotiations were only about non-fiscal aspects. The taxes and royalties covered by the partnership and cooperation agreement are set by law.
Guyana has said it would be willing to amend non-tax terms with bidders to increase investment in the country’s oil industry.
Spokespeople for TotalEnergies, QatarEnergy and Petronas did not immediately respond to requests for comment.
The Exxon-led group is also in talks with the ministry over its bid for a separate shallow water block, S-8, Exxon Guyana country manager Alistair Routledge said on the sidelines of the conference.
The Exxon Group, which includes Hess HES.N and CNOOC Ltd
0883.HK, announced the discovery of more than 11 billion barrels of recoverable oil and gas resources since 2015. It produces approximately 650,000 barrels of oil per day