Cybele Energy – the African-owned exploration and production company that recently signed a Production Sharing Agreement with Guyana for shallow-water Block S7 – now stands as the first African operator to secure an offshore licence in the country and across the South America-Caribbean region. While the announcement has drawn significant attention, the deal highlights the emerging landscape for shallow-water offshore exploration in the Guyana-Suriname Basin and the opportunities it presents for African and indigenous energy firms as a strategic point of entry into the region.

Shallow-Water: Lower Barriers and Faster Paths

For Guyana, the 2022 licensing round under which Cybele Energy secured Block S7 offered 14 offshore blocks across shallow and deep waters. Qualification criteria and fiscal terms were explicitly differentiated by water depth, meaning shallower blocks required lower capital and technical thresholds, making them more accessible to non-majors. This structuring reflects a recognition that shallow-water acreage can attract a broader base of operators – including indigenous regional firms, African independents or companies specializing in mid-tier shallow-water E&P or service work – rather than only global majors with deepwater resources.

Across the basin, shallow-water exploration in Suriname is also gaining momentum. Staatsolie, Suriname’s national oil company, recently launched its 2025 Open-Door Offering, making approximately 60% of offshore acreage available, including nearshore shallow-water blocks ranging from 20 to 50 meters in depth. These are offered under a Production Sharing Contract (PSC) and Joint Study Agreements (JSA)/Technical Evaluation Agreement (TSA), allowing smaller operators to engage flexibly and manage exploration risk. Several shallow-water blocks, including Blocks 9 and 10 off the Saramacca coast, have already been awarded to consortia with international and regional participation, demonstrating both technical viability and investor interest.

For African and indigenous firms, shallow-water acreage represents a clear opportunity. The lower technical and financial barriers make these blocks accessible to operators with proven shallow-water experience but without ultra-deepwater capacity. Shallow-water exploration also allows companies to deploy standard rigs and vessels, execute operations more quickly, and manage costs effectively while maintaining exposure to high-value frontier plays. PSA terms, including royalties, signing bonuses and cost-recovery limits, provide predictability and allow smaller operators to plan capital deployment strategically.

Industry Momentum and Basin Potential

The award of shallow-water blocks in recent years – including Suriname’s Blocks 6, 8, 9 and 10 – along with the ongoing Open-Door Offering, signals that industry players increasingly see value in near-shore and shallow-offshore plays. Geological studies show that the shallow offshore acreage is supported by mature source rocks, with 90 leads and prospects identified across the 11 blocks on offer, containing an estimated 90 billion barrels of oil in place. This analysis has reduced the exploration risk by showing the area does not rely entirely on oil migrating from deeper offshore sources.

The twin factors of open licensing rounds and supportive regulatory frameworks make this an opportune moment for entry. Suriname’s Open-Door Offering gives firms 90 days to submit proposals and select from PSC, JSA or TEA arrangements, providing a lower-cost pathway for smaller operators to prove resources without taking on full deepwater exploration risk. In Guyana, qualification criteria and fiscal terms for shallow-water blocks remain explicitly calibrated for lower-barrier operators, preserving accessible entry even as deepwater interest grows.

Caribbean Energy Week (CEW), scheduled for March 30–April 1, 2026 in Paramaribo, will serve as a strategic hub for advancing collaboration between African, Caribbean and global energy players. The event brings together governments, operators, investors and service providers to drive concrete partnerships, align fiscal and technical frameworks and accelerate local content and talent development initiatives. With shallow-water licensing rounds in Guyana and Suriname gaining momentum, CEW provides a timely platform to convert opportunity into action, showcasing African and indigenous capabilities and facilitating the joint development of high-value offshore resources.

Join us in shaping the future of Caribbean energy. To participate in this landmark event, please contact sales@energycapitalpower.com.