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Diamars, 31 October 2023 AWEMainta BUSINESS & FINANCE 35

Chevron’s $53 Billion Deal Opens Gateway

to Guyana’s Offshore Oil Reserves

A strategic move, Chevron recently acquired Hess for $53 companies and Guyana. This has led to calls for potential
billion, granting the American energy giant access to one of renegotiations.

the most promising prospects in the global resources sector:
Guyana’s offshore oil reserves estimated at a staggering 11 Despite the concerns, advocates of these investments argue
billion barrels. This acquisition marks a significant develop- that they hold the potential to significantly bolster Guyana’s
ment in the fossil fuel industry, with Guyana emerging as a economy. The country is already seeking more favorable

new and remarkable player. terms in future agreements, making it a noteworthy player
in the evolving landscape of the oil industry.
Guyana’s potential as a fossil fuel producer initially garnered
little attention until 2015 when ExxonMobil, in collaboration

with Hess and Chinese company Cnooc, struck gold in the
Stabroek Block. Since that pivotal discovery, the consortium
has continued to make more than 30 significant findings,
setting in motion a steady stream of oil production. This

steady output is set to provide a lifeline for both Exxon and
Chevron in the crude oil business for the foreseeable future.

The economic transformation of Guyana, a nation with one of

the lowest per capita incomes in Latin America, is underway.
The speed of its ascent as an oil-producing nation is remark-
able, having grown from zero to 390,000 barrels a day in
just one year. The IMF anticipates a further 38% expansion

in its economy for 2023.

However, this transformation occurs at a time when the
world is increasingly looking to transition away from fossil

fuels. Critics have raised concerns about the environmental
implications and the terms of the contracts between oil