Chevron excited about exploration potential in Guyana – CEO

After acquiring Hess Corporation’s 30 per cent stake in the oil-rich Stabroek Block, Chevron says Guyana has strengthened its portfolio and has recognised the significant exploration potential that the basin holds. “We’ve got a strong presence in Guyana…but there’s still exploration potential there,” Chairman and Chief Executive Officer (CEO) of Chevron Corporation, Mike Wirth, said during the company’s second quarter earnings call on Friday. Just over a year ago on July 18, 2025, Chevron finalised its $53 billion acquisition of Hess Corporation and according to Wirth, the Hess assets are already generating strong free cash flow – something he attributed to the combined portfolio including the prolific Guyana Basin.

Hess had held a 30 per cent interest in the Stabroek Block offshore Guyana, which is operated by ExxonMobil with a majority interest of 45 per cent while CNOOC holds the remaining 25 per cent stake. With the acquisition, Chevron now holds that 30 per cent nonoperating interest in the Stabroek Block, which contains more than 11 billion barrels of discovered recoverable oil-equivalent resources, adding a long-cycle growth opportunity that is expected to support Chevron’s portfolio into the 2030s. “Guyana is a world-class asset with significant resource depth that is expected to extend high-margin oil growth into the 2030s,” the Chevron Chairman stated. Currently in the Stabroek Block, ExxonMobil is operating four Floating Production Storage and Offloading (FPSO) vessels – Liza Destiny, Liza Unity, Prosperity and One Guyana – and is now gearing up for its fifth development project, Urau. This project will utilise the Errea Wittu FPSO, which set sail for Guyana in June, and remains on track for startup by the end of this year, increasing capacity by 250,000 barrels per day. Approval has already been received for the sixth development, the Whiptail Project, to come on stream in 2027, while the Longtail Project, which is eighth development here, is on the path toward final investment decision. Exxon is already evaluating the potential for a ninth FPSO offshore Guyana.

Future explorations
Even as production continues to grow, the Stabroek Block partners are equally confident about future explorations offshore Guyana. In fact, Chairman and CEO of ExxonMobil Darren Woods, during the company’s second quarter 2026 Earnings Call also on Friday, stated that they are awaiting the International Court of Justice’s (ICJ) ruling on the border controversy case between Guyana and neighbouring Venezuela to resume exploration in the Stabroek Block. “We obviously have a large chunk of acreage, which is in force majeure, waiting for the ultimate ruling from the International Court of Justice… we feel there’s an opportunity then to start shooting seismic and understand what that acreage potentially holds. We’ve got more work to do in the acreage,” Woods had noted. On Friday, both ExxonMobil and Chevron reported profits for the second quarter of 2026 that surged on the rising oil prices due to the Middle East conflict. Exxon’s second-quarter profits stood at US$14.5 billion, more than doubling from about US$7.1 billion during the same period in 2025. On the other hand, Chevron’s net income soared to US$12 billion – a nearly 400 per cent increase compared to the US$2.5 billion recorded in the corresponding period last year, and the company’s highest quarterly profit in at least six years.

In fact, the Chevron’s Wirth said on Friday that the company achieved deal synergies of US$1.5 billion from last year’s acquisition of Hess, which came earlier than anticipated and above the initial $1 billion synergy target set when the deal was closed. “[July] also marks the one-year anniversary of the Hess acquisition. We pulled value forward, capturing 50 per cent more synergies than initially targeted with $1.5 billion [USD] realised six months ahead of schedule. The Hess assets are generating strong free cash flow, which has been roughly double the incremental dividends and accretive to shareholders on a per-share basis,” Wirth stated.

Fantastic year
Meanwhile, in a separate interview on CNBC recently, Chevron’s Chief Financial Officer (CFO) Eimear Bonner spoke about the Chevron and Hess merger one year after its finalisation. “It’s just been a fantastic year,” Bonner said, adding that “We’re fully integrated.” According to the CFO, Chevron is already benefiting from the quality of the combined portfolio and the talented Hess employees who bring deep expertise, the acquisition is expected to extend growth into the 2030s. She too added that acquisition has expanded Chevron’s position, especially with the Guyana basin.