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Posts Tagged ‘CNOOC’

Stabroek Supermajor Squabble

Posted in CCS, Guyana, Offshore Energy - General, tagged , , , , , , , on February 29, 2024| Leave a Comment »

Note that the Stabroek block is equivalent in size to 1,150 Gulf of Mexico lease blocks and contains multiple outstanding prospects.

Are Exxon and Chinese partner (CNOOC) attempting to use Chevron’s acquisition of Hess to improve their already lucrative position in Guyana’s prolific Stabroek block?

From OilNow Guyana:

  • The Stabroek operating agreement outlines terms for Hess, Exxon, and CNOOC to explore and develop the block.
  • This Stabroek agreement includes a right of first refusal (ROFR) provision which allows the parties to buy out the stake of one of them in the event of a ‘change of control’ transaction.
  • Chevron and Hess argue that the merger’s structure does not trigger the ROFR clause.
  • Exxon and CNOOC argue that the clause applies. This could force Hess to offer its stake in the Stabroek block to its partners first. 

The Exxon/CNOOC position seems to be a stretch. Chevron did not buy the Stabroek share; they bought the company that holds that share. Hess is to be part of Chevron and there would be no change of control from the standpoint of the partnership.

As an offshore operator, Exxon has been highly responsible from a safety standpoint. However, the company has a shown tendency to stretch the envelope when it comes to contract rights. The most recent example was their acquisition of 163 GoM oil and gas leases for carbon disposal purposes, contrary to the terms of the sale notice and lease contracts.

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Good for Guyana and the unlikely trio of Stabroek Block partners

Posted in Barbados, Guyana, Jamaica, Offshore Energy - General, tagged , , , , , , , , on July 15, 2023| Leave a Comment »

OilNow, an informative and boldly named media outlet that covers the oil and gas sector in Guyana, reports that “the Guyana government expects crude oil exports this year to generate US$11.3326 billion in 2023, a 14% increase from the 2022 figure.“

Of course, the 3 Stabroek Block partners who are responsible for this production – Exxon (45%), Hess (30%), and CNOOC (25%) – are also doing quite well. If you are wondering about this curious mix of companies – a US supermajor, a large US independent, and a state-owned Chinese mega-company – this OilNow post explains what happened.

Initially, Exxon and Shell were 50/50 partners in the Stabroek Block. Shell thought the chances for success were slim and opted out a year before the world class Liza discovery (ouch!). After Shell departed, Exxon sent “at least 35 letters” to prospective partners and only Hess and CNOOC responded favorably (actually, it was Nexen, not CNOOC that responded). The Liza discovery followed and the rest is history.

Will exploration offshore Jamaica and Barbados also prove successful? Stay tuned.

OilNow

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China’s US OCS leases – exit coming?

Posted in Uncategorized, tagged , , , , , , , , on March 2, 2023| Leave a Comment »

Some may not be aware that the Chinese government, through a fully owned subsidiary of the China National Offshore Oil Corp. (CNOOC), is a leaseholder in the US Gulf of Mexico. Per BOEM records, CNOOC Petroleum USA Inc currently has ownership in 12 OCS leases. Most significantly, CNOOC holds 21% interest in the Appomattox Field, operated by Shell, and a 25% working interest in Stampede, operated by Hess. Peak oil production for these projects is expected to be 175,000 bopd for Appomattox and up to 80,000 bopd for Stampede.

CNOOC acquired the Gulf of Mexico properties through its purchase of Nexen, a Canadian company, in 2013.

The state-owned Chinese oil explorer surrendered operating control of those assets to quell U.S. national security concerns, said two people familiar with the agreement who asked not to be named because the terms aren’t public.

FInancial Post

Reuters has reported that CNOOC is considering an exit from its operations in the US, Canada, and the UK because of sanctions concerns. JPMorgan is reportedly assisting with the sale of the US assets.

Stampede TLP

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