Exxon Began Arbitration Over Hess’ Guyana Assets

ExxonMobil has started an arbitration process regarding its rights over Hess's Guyana oil and gas assets according to a spokesperson.

• "We are engaging in arbitration because we owe it to our shareholders to protect our rights," ExxonMobil spokesperson Michelle Gray said.
• ExxonMobil operates the Stabroek fields in Guyana and holds a 45% interest in the development consortium. The firm has argued that it has a right to be offered Hess's 30% nonoperating interest in the Guyana fields.
• Chevron, Hess, Exxon and CNOOC have been in negotiations over the issue since shortly after Chevron’s announcement to acquire Hess in October.
• The ExxonMobil-led Stabroek Block partners, which have made more than 30 significant discoveries, are currently producing at or near 600kbpd of oil from three fields: Liza Phase 1, producing about 140kbpd; Liza Phase 2, which is at about 245-250kbpd; and Payara, which just came online in November 2023 and by late January was already producing at its nameplate 220kbpd.
• Two more Stabroek fields – Yellowtail and Uaru – are still under production and are expectd to com online in 2025 and 2026 respectively.
• The latest OPEC Momr report forecast Guyana’s oil production to rise by 0.20mbpd in 2024 and by 0.07mbpd in 2025.