A bitter dispute between ExxonMobil and Chevron over ownership of a gigantic oil project with up to $1tn in reserves is scheduled to be heard before an arbitration court in London on Monday, in a case with big implications for both companies and the wider industry.
Stabroek is one of the most lucrative oil discoveries in recent decades with an estimated 11bn barrels of oil reserves and further exploration likely to increase this figure.
Exxon, which owns 45 per cent of Stabroek, claims it has βright of first refusalβ to buy Hessβs stake in the oilfield under the terms of a joint operating agreement (JOA) with Hess and another partner, Cnooc, the Chinese oil and gas company. Cnooc, with 25 per cent of the oilfield, has filed a claim seeking the same pre-emption right.
Chevron, which is not a direct participant in the arbitration case, is desperate to push ahead with its Hess acquisition to access the companyβs Guyana assets. Last year Chevronβs oil and gas reserves fell to 9.8bn barrels, down from 11.1bn barrels in 2023, the lowest in more than a decade.
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Stabroek is one of the most lucrative oil discoveries in recent decades with an estimated 11bn barrels of oil reserves and further exploration likely to increase this figure.
Exxon, which owns 45 per cent of Stabroek, claims it has βright of first refusalβ to buy Hessβs stake in the oilfield under the terms of a joint operating agreement (JOA) with Hess and another partner, Cnooc, the Chinese oil and gas company. Cnooc, with 25 per cent of the oilfield, has filed a claim seeking the same pre-emption right.
Chevron, which is not a direct participant in the arbitration case, is desperate to push ahead with its Hess acquisition to access the companyβs Guyana assets. Last year Chevronβs oil and gas reserves fell to 9.8bn barrels, down from 11.1bn barrels in 2023, the lowest in more than a decade.
ExxonMobil and Chevron to do battle over $1tn oilfields in Guyana
Dispute over stake in Hessβs Stabroek oilfield has implications for joint operating agreements between companies
