Risks In The Scramble For Oil In “The Guyanas”

On October 23^rd, Chevron announced its acquisition of Hess for $53 billion. Its most prized asset: the Stabroek offshore oil block, near the coasts of Guyana. The area has become the epicentre of a new boom, as industry giants scramble for a cut in the action. In the last decade, more than 11 billion barrels of conventional oil and gas have been discovered.

Rival ExxonMobil
XOM
had already made a landing in Guyana, which is producing 400,000 barrels per day with partners Hess Corp and China National Offshore Oil Corporation Ltd. Indeed, the two US oil giants will become partners after the acquisition.