Chevron Corporation, now an indirect stakeholder at the Stabroek Block, recently informed the market that 10 to 12 wells are planned for this world-class concession next year. Given ExxonMobil’s past success with hitting back-to-back discoveries, Chevron’s Chief Executive Officer (CEO), Mike Wirth, said the upcoming campaign bodes well for further resource growth.
The Chevron boss made the foregoing comment following the announcement in late October, that it would be acquiring Hess International for a whopping US$53 billion. Hess International is the parent company of Hess Guyana Exploration Limited, which holds a 30% stake in the Stabroek block, where over 11 billion barrels of oil equivalent have been unlocked.
The Guyana government has indicated that Hess Guyana will continue to be the direct holder of the stake until there is a formal application for a change of ownership by a Chevron subsidiary.
In the meantime, Chevron appears pleased to be an indirect beneficiary. During a call with shareholders on October 23, 2023, Chevron’s CEO spoke glowingly about the oil jackpot in the Stabroek block. He deemed it the industry’s most significant oil discovery pool in the last decade. Additionally, he said, “Hess’ share of net production from two ships—Liza Destiny and Unity—is approximately 110,000 barrels per day at industry-leading cash margins with low carbon intensity, making it a winning combination.”
With the Prosperity floating production, storage and offloading vessel (FPSO) achieving first oil at the Payara project and two other ships in the development queue, Wirth noted that the prospects are truly outstanding for Guyana.
“Guyana is an exceptional and differentiated asset that adds significant resource inventory in the deepwater, complementing Chevron’s existing deepwater assets around the world… We intend to continue partnering with the government of Guyana to create shared prosperity and value for the country and its people,” the Chevron CEO said.
Going forward, Wirth said Chevron’s production growth rate is expected to be higher than its current guidance. He also noted that Guyana is part of his company’s plan to keep a sustainable production growth rate well into the 2030s.