Information Americas, Georgetown, Guyana, Fri. July 18, 2025: Whereas ExxonMobil could proceed to function the world-class oil fields off the coast of Guyana, it’s Chevron that simply made the larger strategic transfer. On Friday, the Worldwide Chamber of Commerce, (ICC) gave the inexperienced mild for Chevron’s US$53 billion acquisition of Hess, ending a contentious battle over one of the profitable oil performs on the planet.
With this ruling, Chevron gains a 30% stake in Guyana’s massive Stabroek Block, home to more than 11 billion barrels of recoverable oil. It’s a long game move that not only secures Chevron’s future in deepwater drilling but also positions it directly alongside Exxon in one of the fastest-growing oil frontiers in the world.
“We welcome Chevron to the venture,” said Exxon in a brief statement, signaling an end to the 18-month standoff between the two energy giants.
A Silent Battle, Publicly Decided
The conflict between Exxon and Chevron has simmered for more than a year, hidden behind closed-door arbitration and legal interpretations of a private joint operating agreement (JOA) between Exxon, Hess, and China’s CNOOC, which holds the remaining 25% stake.
Exxon had claimed it held preemptive rights to Hess’s stake in Guyana and tried to block Chevron’s move. But the ICC’s ruling decisively cleared the path, enabling Chevron to step in as a junior partner on Exxon’s flagship offshore asset.
“This is more than just a merger,” said one energy analyst. “This is Chevron planting its flag in Exxon’s most valuable growth market for the next decade.”
Exxon Runs the Rig, But Chevron Just Joined the Club
While Exxon retains operational control with a 45% share, Chevron’s entry fundamentally shifts the landscape. The Guyana project is expected to produce 1.2 million barrels per day by 2027, amounting to 1% of global supply—and Chevron now shares in the profits and the global clout that comes with it.
Chevron also inherits Hess’s broader portfolio, which includes prime shale assets in North Dakota and stakes in Asia and the Gulf of Mexico, effectively diversifying and strengthening its long-term drilling strategy.
Winners, Losers, and What Comes Next
For Guyana, the new corporate alignment doesn’t change the royalty rates or government take – at least for now. But it does place another powerful multinational into its energy equation. The presence of both Exxon and Chevron in a single national project is rare and brings added pressure on transparency, governance, and fiscal renegotiations, especially as Guyana’s oil revenues surge.
For Exxon, the ruling is a setback—but not a defeat. It retains control of operations and still holds the largest stake in the block. But with Chevron now in the room, it faces a stronger competitor in both financial and geopolitical terms.
“This deal may redefine who dominates deepwater drilling in the Western Hemisphere over the next 20 years,” said a Washington-based energy strategist.
Why This Matters Globally
The Guyana offshore discovery is not just another oil field. According to the International Energy Agency, it’s one of the most promising new oil sources in the world, coming online just as global energy demand is expected to peak. As oil companies race to secure their final frontier projects before energy transitions accelerate, Guyana has become the crown jewel.
And now, Chevron has a seat at the table.
Source link
