Latest update July 24th, 2026 12:30 AM
Latest News
- MV Barima Disaster… 72 confirmed dead
- Parliament must determine COI’s composition for MV Barima probe – Dr. Campbell
- Nine victims of MV Barima tragedy laid to rest
- Transparency Int’l Guyana demands IMO probe of MV Barima tragedy
- Police detain, then apologise to, peaceful protesters at national vigil for MV Barima victims
US$15M signing bonus by Total Energies paid into NRF
(Kaieteur News) – The first consortium to seal an oil pact with the Government of Guyana (GoG) under the revised Production Sharing Agreement (PSA) has paid US$15M as a signing bonus into the country’s Natural Resource Fund (NRF).
This is according to the Minister of Natural Resources, Vickram Bharrat. In an invited comment, he told Kaieteur News that the entire sum has been deposited into the oil account.
Minister of Natural Resources, Vickram Bharrat
Be that as it may, the Bank of Guyana NRF report for November 2025 does not reflect the US$15M sum. In fact, the report indicates that a mere US$3,750,000 signature bonus was deposited into the Fund that month.
Bharrat explained that the three partners in the consortium made separate payments but assured that the total US$15M signing bonus has been paid. While it is only possible to see the US$3M payment, Bharrat indicated that the balance could be reflected in the following month’s NRF report, depending on the date of the deposit.
The Minister did not respond to questions on whether the GoG has sight on any specific use for the resources at this time.
On November 12, 2025, the GoG signed a Petroleum Exploration Licence and Petroleum Agreement with Total Energies, Qatar Energy and Petronas for Block S4, a shallow-water concession off the country’s coast.
Total, a French energy giant leads the consortium with a 40% interest in the block, along with its partners, Qatar Energy and Petronas with 35% and 25% respectively. Block S4 spans an area of approximately 1,788 square kilometres, located 50 to 100 kilometres off Guyana’s coast in water depths ranging between 30 and 100 metres.
Under the revised terms, shallow water blocks are subjected to a signing bonus of US$10M, while deepwater areas will attract a higher sum of US$20M. Government was however successful in acquiring a higher signing bonus through negotiations with the consortium.
The oil companies will be expected to pay a 10 percent royalty and a 10 percent corporate tax to the Government of Guyana. In the meantime, the cost recovery will be capped at 65 percent in a given year, while profits will be shared 50/50 between the parties. These fiscal terms vary significantly from the existing PSA enjoyed by ExxonMobil, the operator of the Stabroek Block. The company pays no taxes but shares 50% profit with government after deducting 75% each month for cost recovery. It also pays a meager 2% royalty to government. The block, which originally spanned 26,800 square kilometers, does not have a ring-fencing provision.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
