Commentator Christopher Ram has said that the Guyana Government should seek to acquire Hess’ 30% share in the lucrative Stabroek Block which is currently at the centre of a dispute between two American oil majors: ExxonMobil and Chevron.
In his oil and gas column in today’s Stabroek News, Ram said Guyana not only has standing and a direct interest in the matter, but a duty to do so. He said that it is too rare an opportunity to pull something back from the “diabolical” 2016 Production Sharing Agreement crafted under the then Natural Resources Minister Raphael Trotman.
At the heart of the current disagreement which is going to arbitration is Chevron’s attempt to acquire Hess Corporation, whose Cayman Islands subsidiary has a branch in Guyana which holds a 30% stake in the Stabroek Block. Ram pointed out that Exxon and CNOOC of China, themselves branches of shell companies incorporated in low/no tax jurisdictions holding 45 and 25 percent respectively, are claiming that they have preemptive rights over Hess’ shares, as outlined in a secret Joint Operating Agreement (JOA) between them. Ram noted that ExxonMobil’s Head, Darren Woods has publicly accused Chevron of disregarding these rights in its pursuit of Hess.