“There is still more to come, so there is still potential there in terms of growth.”
“It’s one of the best,” said Marcelo de Assis, the head of Latin American upstream research at Wood Mackenzie Ltd. Guyana is attractive not just for the size of its discoveries, but also for its breakeven costs, which are some of the lowest for new offshore developments anywhere in the world. owns the remaining 25%.Ĭhevron’s willingness to pay a premium for Hess even after the shares nearly doubled last year shows that the US supermajors are ready to use their financial heft to secure low-cost oil supplies for the long term. The purchase helps the California oil giant narrow the gap with its larger US rival, which owns 45% of the block, operates the project and made its first discovery in 2015. is a piece of larger rival Exxon Mobil Corp.’s prized asset - 11 billion barrels of oil off the coast of South America.Ĭhevron is gaining a 30% stake in Guyana’s Stabroek Block, home to the world’s largest crude discovery of the past decade and one of its most profitable. (Bloomberg) - The crown jewel of Chevron Corp.’s $53 billion acquisition of Hess Corp.
