ExxonMobil and Hess Corp recently reported successful results from their Stabroek oilfield in Guyana, with plans to further expand their operations and increase daily oil production. Guyana’s President Mohamed Irfaan Ali has become a key figure in the oil industry, defending his country’s oil drilling practices against climate change concerns and highlighting the benefits of oil revenue for the country’s development. The country, which gained independence from Great Britain in 1966, has seen a significant increase in GDP per capita since the discovery of oil in 2016 and is exploring various options for distributing oil funds to its population.
Ali, who came to power in 2020, is faced with the challenge of managing potentially tens of billions of dollars in oil revenue and ensuring equitable distribution of funds among the country’s citizens. Exxon has already contributed billions to Guyana’s natural resources fund, with discussions underway to provide direct payments to the population. Additionally, efforts are being made to promote community engagement, such as Exxon’s sponsorship of the Caribbean Premier League and Guyana’s Amazon Warriors team, to foster positive relationships with the local population and support economic growth.
Chevron’s acquisition of Hess, including its stake in the Guyana operation, has faced legal challenges from Exxon and Cnooc, the other partners in the consortium, complicating the deal. Exxon has filed for arbitration to protect its rights and maximize value for its shareholders, potentially impacting Chevron’s plans for the acquisition. Despite these challenges, there are opportunities for growth and diversification in the oil industry, as companies explore new offshore discoveries, such as in Namibia, where significant oil reserves have been identified.
Namibia is emerging as a potential new oil giant, with companies like Shell and TotalEnergies making substantial oil finds and planning to install FPSOs in the region. Portuguese oil company Galp has made a significant discovery in Namibia, with claims of a 10 billion barrels find at the offshore Mopane prospect. The country’s oil industry is gaining momentum, with the potential to rival Guyana in terms of oil production and economic impact. As oil drillers continue to explore new territories for potential reserves, Namibia presents an exciting opportunity for growth and investment in the global oil market.
