Cybele Energy – an African-owned exploration and production company that recently signed a production sharing agreement with Guyana for Shallow Water Block S7 – is now the first African operator to receive offshore licenses domestically and across the South American Caribbean region. While the announcement garnered significant attention, the deal highlights new prospects for shallow water offshore exploration in the Guyana-Suriname Basin and the opportunities it presents for African and indigenous energy companies as a strategic entry point into the region.
Shallow water: lower barriers and faster passages
In the case of Guyana, the 2022 licensing round in which Cybele Energy secured Block S7 offered 14 offshore concessions across shallow and deep water. Qualification standards and accounting conditions were clearly differentiated by water depth, with shallower blocks requiring lower capital and technology standards, making them more accessible to non-majors. This structure reflects the recognition that shallow waters have the potential to attract not only global giants with deep-sea resources, but also a broader class of operators, including indigenous regional businesses, African independents, or companies specializing in mid-tier shallow water development and services.
Beyond the basin, shallow-water exploration in Suriname is also gaining momentum. Suriname’s national oil company, Staatsolie, recently launched its 2025 Open Door Offering, with approximately 60% of its offshore land available, including coastal shallow water blocks between 20 and 50 meters deep. These are provided under Production Sharing Agreements (PSCs) and Joint Research Agreements (JSAs)/Technology Assessment Agreements (TSAs), giving smaller operators flexibility and control over exploration risks. Several shallow water blocks, including Blocks 9 and 10 offshore Saramakka, have already been awarded to consortia with international and regional participation, demonstrating both technical feasibility and investor interest.
For African and indigenous businesses, shallow water land presents clear opportunities. Low technical and financial barriers make these blocks accessible to operators with proven shallow water experience but no ultra-deep water capabilities. Shallowwater exploration also allows companies to deploy standard drilling rigs and vessels, perform work more quickly, and effectively manage costs while maintaining exposure to high-value frontier activities. The terms of the PSA, including royalties, signing bonuses, and cost recovery limits, provide predictability and allow small businesses to strategically plan capital deployment.
Industry momentum and basin potential
Recent shallowwater award awards, including Suriname’s Blocks 6, 8, 9 and 10, and ongoing open door offerings demonstrate that industry players increasingly see value in nearshore and shallowwater offshore operations. Geological studies show that the shallow offshore area is supported by mature source rock, with 90 leads and veins identified across the 11 fields offered, containing an estimated 90 billion barrels of oil. This analysis demonstrated that the region was not completely dependent on oil moving from deeper offshore sources, reducing exploration risk.
Two factors make this a great opportunity to enter: an open license round and a supportive regulatory framework. Suriname’s open-door offering gives companies 90 days to submit proposals and choose between PSC, JSA or TEA arrangements, providing a low-cost path for small operators to prove resources without the full risk of deepwater exploration. In Guyana, eligibility criteria and accounting conditions for shallowwater concessions remain explicitly tailored to lower barrier operators, maintaining accessible entry despite growing interest in deepwater.
Caribbean Energy Week (CEW), scheduled for March 30 to April 1, 2026 in Paramaribo, will serve as a strategic hub to foster cooperation between African, Caribbean and global energy stakeholders. The event brings together governments, operators, investors and service providers to promote concrete partnerships, align financial and technical frameworks, and accelerate local content and talent development efforts. As shallow water licensing rounds in Guyana and Suriname gain momentum, CEW provides a timely platform to turn opportunity into action, showcasing African and indigenous capabilities and fostering joint exploitation of high-value marine resources.
Join us in shaping the Caribbean’s energy future. To participate in this groundbreaking event, please contact sales@energycapitalpower.com.
