Guyanese Govt very supportive of Chevron entering Stabroek Block – Hess tells conference
Jan 08, 2025
Kaieteur News- John Hess, the Chief Executive Officer (CEO) of Hess Corporation, on Tuesday, said that the Guyanese government has strongly endorsed American oil giant Chevron’s anticipated entry into the Stabroek Block.
Speaking at the Goldman Sachs Research: Energy, CleanTech & Utilities Conference, Hess said President Irfaan Ali has made it clear that maintaining a three-way partnership for the block is critical.
“The government’s been clear they want a three-way partnership to continue. They don’t want a two-way partnership to own the asset,” Hess outlined.
Chief Executive Officer of Hess, John Hess
He continued, “So President Ali has been very clear about that, he’s gone public, he’s been in the Financial Times speaking about that and he’s very supportive of Chevron becoming the third party in the country.”
Hess Corporation, which holds a 30% stake in the Stabroek Block, is pursuing a US$53 billion merger with Chevron. However, ExxonMobil, the block’s operator, and CNOOC have initiated arbitration, citing a right of first refusal on Hess’s share of the block. Despite this, Hess expressed confidence that the merger would proceed as planned.
“We think Exxon’s position and CNOOC’s position is without merit, baseless. It’s about the right of refusal. We think it’s very clear, the words on paper in English law that there’s no right or refusal to be exercised. So, we’re very confident that merger is going to go through, and we’re getting prepared for that,” Hess stated.
The arbitration hearing is set for May 2025, with a decision expected approximately 90 days later. Hess explained the process, saying, “Memorials have been exchanged. The hearing is going to be in May. The decision should be rendered about 90 days later, so let’s say late August, September, and once that’s done, we look forward to completing the merger.”
When asked if Exxon could affect the arbitration timeline, Hess was resolute. “I think it should be wrapped up. The three arbitrators that are in place now have been very clear that’s when their decision is going to be rendered, and once that’s done, we’ll close our deal,” he said.
Chief Executive Officer of Chevron, Michael (Mike) Wirth
Moreover, despite the ongoing arbitration, Hess shared that operational relationships with Exxon remain unaffected.
“Our people continue to work with Exxon. Exxon has always said, on an operating basis, we’ve been their best partner… The working relationship between the two companies is still working just as well as before,” he added.
President Irfaan Ali (Guyanese Govt very supportive of Chevron)
If the arbitration outcome favours Hess and Chevron, Chevron will secure its entry into the Stabroek Block, which is estimated to hold 11.6 billion barrels of oil. Since production commenced in December 2019, Exxon is now producing 660,000 barrels per day (bpd) from three developments: Liza Phase 1, Liza Phase 2 and Payara. This year, Exxon’s largest deep-water project date in Guyana will commence oil production.
(Guyanese Govt very supportive of Chevron entering Stabroek Block – Hess tells conference)
Related
Similar Articles
