With greater administrate leverage now, Guyana reviewing next oil development framework

President Irfaan Ali says Guyana is entering a new phase of oil and gas development in which the government is reassessing how future projects should be structured and how the country can use its growing position in the sector to secure greater benefits.

Speaking at his press conference earlier this week, Ali said internal discussions are underway on the treatment of the next phase of oil projects, with government examining global industry conditions, the need for investment, the structure of that investment, where capital is coming from and the exploration that will take place.

The President also indicated that Guyana's position has changed as the country's offshore industry has matured, pointing to what he described as greater "administrative leverage" for the government to secure additional benefits from the sector.

The comments come as Guyana moves beyond the early development stage of the Stabroek Block and into a broader period of exploration and development involving new operators.

The government has already established a new fiscal framework for future petroleum agreements. Unlike the 2016 Stabroek Block agreement, the new model provides for a 10 percent royalty, a 10 percent corporate tax and a 65 percent ceiling on cost recovery, compared with the 75 percent ceiling under the Stabroek agreement. The government has said the new terms apply to future developments rather than existing contracts.

The first agreement under that framework was signed in November 2025 with a consortium of TotalEnergies, QatarEnergy and PETRONAS for shallow-water Block S4. The agreement included a US$15 million signing bonus and began a new phase of exploration outside the Stabroek Block.

That exploration phase is now advancing. The government said in July that TotalEnergies, QatarEnergy and PETRONAS had begun seismic work offshore, while other new petroleum agreements are being advanced.

Guyana is therefore moving toward a two-track petroleum sector: continued development of the established Stabroek resource while new operators explore other offshore acreage under the country's newer rules.