Chevron will be a ‘good partner’ in Guyana – Jagdeo

International oil company Chevron agreed to buy Hess Corporation – one of the oil companies with a stake in Guyana’s Stabroek Block – earlier this week and Vice President Dr. Bharrat Jagdeo said the government welcomes this move.

He highlighted that Chevron is one of the largest oil companies in the United States of America (USA). And so, having Chevron and ExxonMobil in Guyana could enable the government to achieve its accelerated development plan.

“We believe that they have deep pockets and they can fund the investment programme to move us to production at the earliest point in time,” he said during his press conference on Thursday.

He said Chevron specifically will be a “good partner” in Guyana.

The proposed sale of Hess to Chevron, Reuters reported, raises the competition between Chevron, the number two U.S. oil and gas producer behind Exxon, putting it in direct competition with its bigger rival to develop drilling in nascent producer Guyana.

The deal also signals Chevron’s plans to continue boosting investments in fossil fuels as oil demand remains strong and big producers use acquisitions to replenish their inventory after years of under-investment.

Meanwhile, Jagdeo said the country’s existing US$750 million carbon credits deal with Hess will remain intact even with the sale of the company to Chevron.

Guyana’s first and only carbon credit deal so far, brokered after the country got special carbon credits issued to it last December, was executed with Hess Corporation and one of the companies searching for and producing petroleum in the country’s nascent oil and gas sector.

A carbon credit, generally, is a kind of tradable permit or certificate that represents the removal of a certain amount of carbon dioxide from the environment. Since carbon dioxide is the principal greenhouse gas that harms the environment, it is tracked and traded like any other commodity.

By the end of 2030, Guyana should amass at least US$750 million from the deal inked with Hess. Of that sum, Indigenous communities, altogether, should receive at least US$112 million—that is, their 15% direct cut as stipulated by Guyana’s Low Carbon Development Strategy (LCDS).

Based on advice received, Jagdeo said that deal will not be affected by the sale of Hess to Chevron.