Guyana open to investments from all international companies – Pres Ali

…says Hess-Exxon arbitration a matter for existing partners

President Dr Irfaan Ali

The international community was on Tuesday reminded that Guyana is very much “open for investments”, particularly to companies that are global leaders in their respective sectors, by President Dr Irfaan Ali.
The Head of State was at the time responding to questions related to an article published by the Financial Times, titled ‘Guyana’s president welcomes Chevron’s bid to buy into $150 Billion oil project’.
According to President Ali, Guyana is keen on attracting the world’s largest companies in all sectors to develop its resources and contribute to the robust development of Guyana and its economy.
When it comes to the matter between Hess Corporation and Exxon Mobil, President Ali noted generally that any proposal to bring in a major new partner into the consortium was a “matter for existing partners”.
The President also added that while his government is of the view that the current partnership “works well”, healthy competition from companies can be beneficial to all parties, including the Government and people of Guyana.
In October 2023, Chevron offered $53 Billion to purchase Hess’s 30 per cent stake in Guyana’s Stabroek Block. The proposed deal eventually erupted into a clash after Exxon Mobil filed an arbitration claim arguing it had a right of first refusal to purchase Hess’s interest in Guyana’s Stabroek Block.
Exxon is claiming a right of first refusal on Hess’ assets in Guyana under a joint operating agreement that governs a consortium that is developing the South American nation’s prolific oil resources. The oil major filed for arbitration in March at the International Chamber of Commerce in Paris.
The arbitration court will ultimately decide the timeline of the proceedings, but Hess has asked the panel to hear the merits of the case in the third quarter with an outcome in the following quarter. Chevron CEO Mike Wirth told analysts during the company’s first-quarter earnings call in April that this timeline should allow the parties “to close the transaction shortly thereafter.”
“We see no legitimate reason to delay that timeline,” Wirth said.
If Exxon prevails in the case, Chevron’s deal with Hess would break up. Woods has said Exxon is not making a play to buy Hess, but wants to defend its right in the interest of shareholders and find out what value is being placed on Hess’ Guyana assets.
Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019, in the Stabroek Block. Guyana’s oil revenues are being held in the Natural Resource Fund (NRF) at the New York Federal Reserve Bank, where it is earning interest.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). EEPGL is the operator and holds 45 per cent interest in the Block. Hess Guyana Exploration Ltd still holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
Since last year, Guyana has been recording weekly lifts in the Stabroek Block with oil production now at 340,000 barrels per day from the Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels. With EEPGL making weekly lifts, Guyana’s crude entitlement of one million barrels occurs monthly from the two FPSOs.
ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027. In fact, Exxon has already received approval for their sixth project, Whiptail. In addition to at least these six projects offshore Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 Floating Production Storage Offshore (FPSO) vessels will be operational by 2030. (G3)