Energy Advisor 2025-08-08 – Inter-American Dialogue

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

August 8, 2025

Will Chevron and Exxon Be Able to Coexist in Guyana?

After finalizing its merger with Hess, Chevron last month took over a 30 percent stake in the consortium of firms controlling Guyana’s Stabroek Block alongside ExxonMobil and CNOOC. // Photo: ExxonMobil.

Q

The International Chamber of Commerce on July 18 ruled in favor of Chevron in an arbitration case regarding its $53 billion merger with Hess Corp., paving the way for the U.S. oil major to assume control of Hess’ 30 percent stake in the consortium that operates Guyana’s offshore Stabroek Block. The consortium in Guyana—which also includes ExxonMobil and China’s CNOOC—boasts world-leading breakeven recovery prices and presently accounts for more than 900,000 barrels per day of crude oil production. How could Chevron’s involvement in the Stabroek Block affect long-term planning for the consortium? To what extent could ExxonMobil and Chevron’s historic rivalry represent a risk to the Stabroek Block’s continued operation? How might the finalization of the Chevron-Hess merger affect oil and gas acquisitions elsewhere in Latin America?

A

Schreiner Parker, partner and head of emerging markets at Rystad Energy: “ExxonMobil’s decision to bring a case before the International Chamber of Commerce over Hess’ 30 percent stake in Guyana’s Stabroek Block was less about rivalry with Chevron than it was about protecting its strategic interests. From ExxonMobil’s perspective, the move wasn’t a hostile challenge to the Chevron-Hess merger, but a prudent exercise of what it believed was a contractual right of first refusal (ROFR). The Stabroek Block is arguably the crown jewel of ExxonMobil’s current global portfolio with low breakeven costs, low emissions intensity per barrel and lots of upside for the future. For a company prioritizing capital discipline and returns, ensuring…”

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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.