Govt to re-engage Chevron following Hess-Chevron merger developments

The Government of Guyana is expected to re-engage US energy giant Chevron in the wake of its merger agreement with Hess Corporation, which has direct stakes in Guyana’s lucrative offshore Stabroek Block.

Under the terms of the merger, Hess shareholders are set to receive 1.0250 shares of Chevron for each Hess share held, with Chevron poised to issue approximately 301 million shares of common stock to complete the transaction. This move significantly reshapes the corporate structure behind Guyana’s Stabroek Block, which includes partners ExxonMobil, Hess, and CNOOC.
Vice President (VP) Bharrat Jagdeo had previously indicated that the Government is closely monitoring the merger to ensure that Guyana’s national interest is protected, particularly regarding local content obligations, production timelines, and profit-sharing arrangements.
The re-engagement signals Guyana’s intent to review and clarify how the merger could affect existing agreements and regulatory approvals tied to its petroleum sector.
“We have to meet Chevron. They came here once to meet with us when Hess had just made the decision to sell his shares to them. And I suspect now that if they are going to be a partner in the consortium, then we’d have to engage them too. Again, again, and talk to them about our expectations of the company and get them more involved in socially responsible activities,” the VP said during his weekly press conference last Thursday.
Chevron, one of the world’s largest oil companies, finalised its $53 billion merger with Hess after clearing all regulatory hurdles and winning a pivotal arbitration ruling over Hess’ rights in Guyana.
With the merger complete, Chevron officially enters Guyana’s energy sector – and not just in name. The Stabroek Block, now jointly operated by ExxonMobil (45 per cent), Chevron (30 per cent), and CNOOC (25 per cent), is among the most prized oil discoveries globally, boasting over 11 billion barrels of recoverable resources.
According to Chevron, it expects to achieve transaction benefits, which include accretion to cash flow per share in 2025 after achieving synergies and starting up the fourth floating production storage and offloading vessel in Guyana and increases to Chevron’s estimated five-year production and free cash flow growth rates.

Oil production
Guyana’s daily oil production is set to increase by 37 percent with the imminent start-up of its fourth offshore development, the Yellowtail project, operated by ExxonMobil. The project will add 250,000 barrels per day (bpd) to national output, raising production from June’s estimate of 664,000 bpd to over 900,000 bpd.
ExxonMobil CEO Darren Woods made the announcement during the company’s second-quarter earnings call on August 1, confirming that the Yellowtail development is on track to achieve first oil next week.
“Our fourth development is the largest to date. Yellowtail is next in line and anticipated to achieve first oil next week, delivered four months ahead of schedule and under budget,” Woods said.
The project is being brought online through the ONE GUYANA floating production, storage, and offloading (FPSO) vessel, which was built by SBM Offshore. The Dutch company has now delivered multiple FPSOs for Guyana’s offshore developments, consistently ahead of schedule.
Yellowtail will mark a major milestone not only for Guyana but also for the region. With its start-up, Guyana will become the world’s largest oil producer per capita.
Yellowtail is the fourth project in this series. Three prior developments – Liza Phase 1, Liza Phase 2, and Payara – are currently producing. Two more 250,000 bpd developments are expected to begin production between 2026 and 2028, while another two are undergoing the application process with potential start-up between 2029 and 2030.
These future projects are expected to broaden the production space beyond oil to include natural gas and condensate.