Chief Executive Officer of Hess Corporation, John Hess, said Friday that he was assured by Guyana President Dr. Mohamed Irfaan Ali of the strength of Guyana’s case in the appeal of an upset High Court judgment on financial assurance for the Stabroek Block.
Hess is a 30% stakeholder in the Block, for which the partners had been ordered by Guyana’s High Court to provide an ‘unlimited’ parent and/or affiliate guarantee. Investors have taken issue with the ruling as such a guarantee for accidents is unprecedented.
While speaking at a J.P. Morgan 2023 Energy, Power & Renewables Conference on Thursday, Hess said he had called President Ali to express concern about the ruling, and Ali conveyed that the State had a strong case in the appeal it has sought of the judgment.
“… the President—based on the advice of his Attorney General—conveyed to me that the State’s case in favour of its application was strong, and based on the merits of the case, there was no reason why a stay could not be granted,” Hess said in his Friday statement.
He sought to clarify the comments he made at the conference, following a report in the local media, which said President Ali assured him a stay would be granted. Hess said this was misleading.
Guyanese public policy and financial analyst, Joel Bhagwandin, in a letter to the press on Friday, said that an expression of confidence (on the President’s part) cannot be equated with an assurance. Bhagwandin said there has been no attempt by the government to influence the court in any way.
