WRINKLES IN THE PETROVERSE
OILMAN|May - June 2024
The landscape of Guyana’s nascent petroleum industry was significantly altered in October 2023 when Chevron Corporation announced its intended purchase of Hess Corporation.
TULSI DYAL SINGH
WRINKLES IN THE PETROVERSE

A Major Shakeup in the Ownership

Earlier in the month, it was altered too, though less directly, when ExxonMobil announced its acquisition of Pioneer Natural Resources. ExxonMobil and Hess together own 75 percent of the triumvirate which owns the mineral rights to Guyana’s Stabroek Block. The Chinese company CNOOC owns the other 25 percent. ExxonMobil owns 45 percent and is the operator of the Stabroek Block.

These ownership changes point to changes in the priorities that buyers and sellers constantly monitor and respond to in the ongoing business of enhancing

shareholder value and returns, in a fast moving and often unpredictable Petroverse. While Guyana is the sovereign owner of the Stabroek Block, the real decision makers are the major international oil corporations that have acquired the mineral rights, have the financial resources and the technical and technological expertise to bring the oil and gas to the surface, ready for monetization. Guyana is mostly a bystander while it receives its two percent royalty and guaranteed 12.5 percent profit share until the corporate investors have recovered their capital outlays.

John Hess, the chief executive officer of Hess Corporation was the most vocal cheerleader of Guyana’s oil, as he promoted the promises of Guyana’s bountiful oil reserves; the advantaged exploitation agreement they had obtained; the

pliability of their counterparts in Guyana; the ease of securing environmental passes; contracting with deep water drillers at the bottom of a low-cost cycle; crunchy, porous rocks laden with high quality Brent oil; and one of the lowest breakeven costs in the oil industry. Hess’ stock price reached its highest point ever as the corporation’s profit soared. So, why did he sell, at this time, to Chevron?

Significance of the Sale

هذه القصة مأخوذة من طبعة May - June 2024 من OILMAN.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة May - June 2024 من OILMAN.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من OILMAN مشاهدة الكل
KANSAS STRONG: STRENGTH THROUGH RELIABLE OIL AND NATURAL GAS IS MORE THAN A TAGLINE!
OILMAN

KANSAS STRONG: STRENGTH THROUGH RELIABLE OIL AND NATURAL GAS IS MORE THAN A TAGLINE!

Kansas, often recognized for its expansive plains and agricultural prowess, boasts a lesser-known yet significant history in the realm of oil and gas development.

time-read
4 mins  |
May - June 2024
WRINKLES IN THE PETROVERSE
OILMAN

WRINKLES IN THE PETROVERSE

The landscape of Guyana’s nascent petroleum industry was significantly altered in October 2023 when Chevron Corporation announced its intended purchase of Hess Corporation.

time-read
7 mins  |
May - June 2024
VOICE OF THE ARCTIC IÑUPIAT PRESIDENT CONDEMNS FEDERAL OVERSTEP OF ALASKA'S NPR-A
OILMAN

VOICE OF THE ARCTIC IÑUPIAT PRESIDENT CONDEMNS FEDERAL OVERSTEP OF ALASKA'S NPR-A

While the federal government continues to wage its war on oil and gas, many entities and communities throughout the United States find their way of life to be considered nothing more than collateral damage.

time-read
4 mins  |
May - June 2024
REFINERY REBIRTH: TRANSFORMING AN AGING OIL REFINERY INTO A RENEWABLE FUEL PRODUCER
OILMAN

REFINERY REBIRTH: TRANSFORMING AN AGING OIL REFINERY INTO A RENEWABLE FUEL PRODUCER

For 125 years, Phillips 66’s San Francisco refinery in Rodeo, California, processed only crude oil.

time-read
4 mins  |
May - June 2024
7 EPIC SKILLS FOR INDEPENDENT CONTRACTORS
OILMAN

7 EPIC SKILLS FOR INDEPENDENT CONTRACTORS

There are 7 Essential Skills for Effective Principled Independent Contractors.

time-read
5 mins  |
May - June 2024
DIGITALIZATION IN OIL AND GAS - A NEW WAY OF WORKING
OILMAN

DIGITALIZATION IN OIL AND GAS - A NEW WAY OF WORKING

In today’s rapidly evolving world, every industry is constantly seeking innovative ways to improve performance and drive efficiency.

time-read
4 mins  |
May - June 2024
RMI SUPPLY SECURES MARKET SHARE THROUGH CONTROLLED GROWTH AND QUALITY SERVICE
OILMAN

RMI SUPPLY SECURES MARKET SHARE THROUGH CONTROLLED GROWTH AND QUALITY SERVICE

Tales of the entrepreneurial spirit secure a sizable portion of space in the history books and continue to shock and impress spectators benefiting from the technology or advancement set forth.

time-read
5 mins  |
May - June 2024
DAVID LAWLER AND THE QUEST FOR THE NEW FUTURE
OILMAN

DAVID LAWLER AND THE QUEST FOR THE NEW FUTURE

Brothers David and Doug Lawler are not twins, but their careers have run on twin paths.

time-read
10+ mins  |
May - June 2024