dispute | Bud's Offshore Energy (BOE)

Posts Tagged ‘dispute’

Goldman Sachs: Investors see Chevron and Hess prevailing in Stabroek dispute

Posted in Guyana, Offshore Energy - General, tagged arbitration, Chevron, dispute, Exxon, Guyana, Hess, ICC, Nexen, Stabroek on January 15, 2025| Leave a Comment »

“Most investors see Chevron and Hess emerging as victors in the case, Goldman analyst Neil Mehta said in an interview.”

This is consistent with the opinion previously expressed on this blog. How does a partner in a single Hess asset prevent Chevron from acquiring the entire company?

Chevron is not buying the Stabroek share; they are buying 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 is not reluctant 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.

Interestingly, Exxon’s partner in this dispute is state-owned China National Offshore Oil Corporation. CNOOC acquired their 25% Stabroek share when they purchased Nexen, a Canadian company (sound familiar?). Both the Canadian and US governments had reservations about this acquisition and nearly nixed the deal. Would either government bless that acquisition today?

An International Chamber of Commerce arbitration panel will hear the Stabroek case in May 2025, and the final decision is expected by September 2025.

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Exxon-Chevron-Hess-CNOOC Stabroek dispute drags on

Posted in Guyana, Offshore Energy - General, tagged arbitration, CNOOC, dispute, Exxon, Guyana, Hess, Stabroek Block on August 2, 2024| Leave a Comment »

An International Chamber of Commerce panel has set a May 2025 date for the hearing on the dispute over Chevron’s acquisition of Hess’s share of Guyana’s Stabroek field. This is a massive delay considering the impact of this arbitration case on Chevron’s purchase of Hess.

The matter also has significant international intrigue given that (1) Exxon’s Stabroek partner is state-owned China National Offshore Oil Corp, which ironically acquired their 25% Stabroek share when they purchased Nexen (sound familiar?), and (2) Chevron continues to operate in neighboring Venezuela where the Maduro regime has claimed much of Guyana’s offshore resources.

As noted in a previous post, 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. The panel will decide, but given the May 2025 hearing date, we probably won’t know the outcome for a year.

The Guyanese government has not taken a position in this dispute, but in my opinion, there are reasons for them to be concerned. Stabroek is Guyana’s offshore gem, their most important economic asset. The dispute has to affect teamwork and communication.

From safety, environmental, and production standpoints, do you want feuding partners managing such an important national asset? Those are Guyanese resources that the Stabroek partners are licensed to produce. I would have liked to have seen the government tell them to get this resolved in 30 days or we’ll resolve it for them.

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