Chevron’s US$53 billion acquisition of Hess Corporation is not just about reserves; it’s about people. According to Chevron Chief Executive Mike Wirth, the deal, announced in October 2023, was driven by the long-term growth Hess brings and the expertise of its exploration team.
Speaking on Bloomberg’s Wall Street Week program, aired August 27, Wirth stated, “Hess has some very talented people in exploration who’ve been quite involved in the identification and appraisal of the resource in Guyana, which is the largest new discovery in the world over the last couple of decades.”
He added, “So, we’re going to bring their talent, their experience, their insights and blend it with ours.”
The takeover gives Chevron a 30% stake in Guyana’s Stabroek Block, a prolific offshore field operated by ExxonMobil with co-venturer CNOOC. More than 11 billion barrels of recoverable resources have already been discovered there, transforming Guyana into one of the fastest-growing oil producers in the world.
Chevron’s entry strengthens Guyana oil sector despite Venezuela ties – Rystad Energy | OilNOW
Wirth noted that the acquisition comes as Chevron’s own operations are reaching new highs. The company’s Permian Basin production recently hit one million barrels per day, and global output has set records over the past few quarters. Hess, he said, will extend that momentum beyond the next few years as some of Chevron’s largest projects reach maturity.
For Wirth, the rationale is as much about innovation as it is about growth. “As we move forward, we’ve got acreage around the world and we’re going to have a stronger team to think about these opportunities differently, and I’m confident we’ll get better results,” he explained.
As Chevron assumes Hess’ position alongside ExxonMobil in Guyana, Wirth emphasized that he expects the collaboration to work smoothly. “We partner to share risk, to share costs, and it’s quite common particularly on large-scale developments,” he said. “Many of the people that will be working on this project are the Hess people who have now joined Chevron.
