A sharp rise in the combined asset base of Stabroek Block co-venturers ExxonMobil, Hess, and CNOOC, has strengthened the consortium’s ability to financially respond to a potential offshore oil spill.
The three companies reported total assets of US$34.3 billion at the end of 2024, up from US$27.9 billion in 2023, an increase of more than 23%. ExxonMobil, the operator of the block, held the largest share of those assets.
Speaking at a media briefing on Tuesday, ExxonMobil Guyana’s New Business Services Manager, John Colling, said the company’s growing asset base provides the “initial layer of financial assurance” in the event of a spill. He noted, for example, that property, plant, and equipment (PP&E) rose from GY$2.95 trillion in 2023 to GY$3.29 trillion in 2024 (US$13.99 billion to US$15.65 billion).
This is accompanied by US$600 million in third-party insurance and a US$2 billion affiliate guarantee, which Colling said provides “significant capacity in excess of financial assurance”.
He noted, however, “Our number one priority is safety to ensure that a spill never occurs. But in the event something were to occur, there are several layers which provide financial assurance.”
The financial statements for Hess and CNOOC were sourced from Guyana’s Commercial Registry, which requires annual submissions. Exxon’s own filings are expected to be lodged with the Registry soon, following their presentation to local media.
The combined equity of the three firms rose nearly 32% in 2024 to US$24.7 billion. Exxon holds a 45% stake in the Stabroek Block, while Hess holds 30% and China’s CNOOC holds 25%.
Guyana’s recently enacted Oil Pollution Prevention, Preparedness, Response and Responsibility Bill sets out a national framework for oil spill prevention and response, and holds companies liable for the full cost of restoration and damages.
Since oil production began in 2019, environmental advocates have raised concerns about Guyana’s readiness to deal with a large-scale spill. Critics often reference major international disasters as cautionary examples.
In response, both the company and the government have stressed improved industry standards and logistical readiness. One key asset is a capping stack, one of only a few in the world, stationed in-country and capable of being deployed within days. Government officials have cited this as evidence of Guyana’s strengthened spill response framework, while maintaining that their hope is for such equipment to never be needed.
Production in the Stabroek Block currently exceeds 600,000 barrels per day (b/d) from three active projects. A fourth project is expected to start production in the third quarter of 2025, raising output beyond 900,000 b/d.
