Forbes Story: Guyana Oil Development Back In Focus After Chevron, Hess Deal

A woman poses for photos in Georgetown, Guyana, Wednesday, April 12, 2023. Guyana had the world's fastest growing economy in 2022, spurred by the Stabroek offshore oil development. (AP Photo/Matias Delacroix) COPYRIGHT 2023 THE ASSOCIATED PRESS. ALL RIGHTS RESERVED

Last month’s announced $53 billion buyout of Hess Corp. by U.S. oil major Chevron places a new focus on Guyana, as Hess’s 30% share of the massive Stabroek block offshore development operated by fellow major ExxonMobil makes up the major prize in that deal. Since development of the resource commenced in earnest several years ago, this tiny South American nation of just around 800,000 people has become the world’s fastest-growing economy, with GDP growth of 62.3% in 2022

CNBC reports that BMI, a Fitch Solutions research group, projects 38% growth during 2023, and that the Guyanese economy could expand by 115% over the next five years. This is a massive economic impact, one so large that the Nicolas Maduro government in Venezuela recently renewed its longstanding claim to own rights along the western extent of the play area. The International Court of Justice (ICJ) ruled in April that it has jurisdiction to decide the controversy, a contention with which Guyana's President Irfaan Ali agrees, saying, "We've allowed this matter to go to the ICJ and we have continuously encouraged Venezuela to participate fully in the process and for both parties to respect the outcome of the process."

Regardless of the outcome of that controversy, the challenge for ExxonMobil is to continue to develop the resource in an orderly manner with its new partner and competitor Chevron, along with longstanding consortium partner CNOOC, which owns a 25% share. It is the kind of challenge that is not uncommon for developers of international energy projects in distant parts of the world.