HOUSTON, May 8 (Reuters) - Guyana's cabinet has approved
a bid for an offshore oil block by a consortium including
QatarEnergy, TotalEnergies and Malaysian
state-owned Petronas, a minister from the South
American country said on Wednesday.
Guyana, home of the largest oil discoveries in nearly a
decade, offered 14 offshore blocks in September in its first
competitive auction that attracted bids from the consortium, as
well as an Exxon Mobil ( XOM )-led group that has been
responsible for all the nation's output to date.
Guyana has not yet awarded any of the blocks.
After accepting the bid from the QatarEnergy,
TotalEnergies and Petronas group for shallow water block S-4,
the government is negotiating terms of a production sharing
agreement (PSA) with Guyana's energy ministry, Minister of
Public Works Deodat Indar said at the Offshore Technology
Conference in Houston.
"They applied for their go-ahead, for their exploration
activities," Indar told Reuters. "The cabinet has cleared it,
but they are working through their PSA with the ministry of
natural resources.
Spokespeople for TotalEnergies, QatarEnergy and Petronas
did not immediately reply to requests for comment.
The Exxon-led group also is 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 and CNOOC
Ltd, has announced discoveries of more than 11 billion
barrels of recoverable oil and gas resources since 2015. It is
producing about 650,000 barrels of oil per day.