Vice President of Guyana, Bharrat Jagdeo says the government “will live with” the result of the surprise challenge by ExxonMobil over Chevron’s acquisition of Hess’ stake in the Stabroek Block.
Exxon and CNOOC are asserting the right of first consideration over the acquisition of their partner Hess’ 30% stake in the massive block which contains over 11 billion barrels of oil equivalent resources. This is according to a Hess filing with the Securities Exchange Commission (SEC). This could hinder Chevron’s acquisition of Hess, since its Stabroek stake is a major motivator for the merger.
“Whatever is the outcome we will live with it,” Jagdeo told Reuters on the sidelines of a meeting of Caribbean leaders in Georgetown. “This is a matter for Exxon, Chevron and Hess (to resolve).”
Exxon said it would consider its pre-emption right.
Jagdeo told Reuters Guyana is ready to welcome Chevron into the country but would also accept a result in which Chevron’s acquisition of Hess does not go through and Exxon ends up buying Hess’ shares in the consortium.
Chevron and Hess do not agree that the Stabroek partners have the right of first consideration in the case of Chevron’s acquisition of Hess. While they hope talks will smooth over the issue, they could end up going to arbitration.
