While main operator in the Stabroek Block, ExxonMobil, has been silent on the March 2 General and Regional Elections, president of partner company, John Hess, said that they believe that a new government will be soon sworn in and anxiously await working with them.
Hess told the Fireside Chat at the J.P Morgan 2020 Energy, Power and Renewables Conference that Guyana remains the company’s “best investment” but that there is a delay with the Payara project because of the current government’s political status since necessary permits have been held up, but a new government is expected this week.
He was however also quick to explain that both the current government and the opposition have given the assurance that they will honour the Stabroek Block contract and they could work with either side.
“Where the impact has more been felt is on Payara’s development plans. We are waiting on the elections results for the presidency. The general elections commission [Guyana Elections Commission], hopefully if not today, in the next few days, will announce the new government. And at that time Exxon and our joint venture will work closely with them to get the development plan for Payara approved,” the Hess boss said.
The company’s CEO said that he believes that this country will have a new government as regional and international leaders and organisations have all said that the recount process was credible and that the people of Guyana’s choice should be honoured.
“It is our expectation that we will get [it] sometime later this week. The fact that the CARICOM weighed in yesterday, that was overseeing the elections, and said the vote count is legitimate and should be honoured. Also, (US) Secretary (of State Mike) Pompeo and other western governments have weighed in as well that the voice of the Guyanese people should be heard,” Hess said.
“We are cautiously optimistic that this time we will get a new government named. We can work with either party. They need us and we need them. Both parties have given us the assurance that the production sharing contract is going to be honoured but we are just ready to get back to work,” he added.
And as he outlined the company’s financial plans while giving an update on the effects of COVID-19 on operations, Hess stressed that its investment here has been its best oil and gas venture.
“When you look at it in totality, Guyana is our best investment [so] that is where we are dedicating the majority of our capital…,” he said.
For the company with heavy stakes here, Hess believes that their returns will only get better, even as it awaits the resolution of the current political debacle that has seen this country without an election result and the nation waiting on a legitimate government for nearly four months.
“Our top priority is Guyana; the oil industry’s most attractive investment. The Stabroek Block is extraordinary, and it keeps getting bigger and better. We have a 30 per cent interest and ExxonMobil is the operator. They have done an outstanding job managing the project …and we have multi-billion barrels of exploration potential. We are still in the early innings of exploration upside in our company, led by our position in the Stabroek block in Guyana,” Hess said.
