CNOOC Takes Legal Action Against Hess Over Guyana Oil Block Ownership
On March 22, Chinese offshore oil and gas giant CNOOC (0883.HK) announced that it had initiated arbitration proceedings to establish its rights over Hess’ (HES.N) stake in the significant Guyana oilfield Stabroek in the event of a potential sale to Chevron (CVX.N).
CNOOC filed the arbitration claim on March 15, following a similar action by its Stabroek partner Exxon Mobil (XOM.N), according to Xu Yugao, CNOOC‘s board of directors secretary, who spoke at an earnings briefing on Thursday. Xu explained that they have a joint operating agreement regarding the Stabroek block and will address relevant issues based on arbitration terms.
Exxon, the operator of the Stabroek block, holds a 45% stake, while Hess possesses 30% and CNOOC holds 25%. Currently, Exxon and Chevron are engaged in discussions concerning Exxon’s claim of having a right of first refusal on any potential sale of the Stabroek block, which is considered a significant field off the coast of Guyana, estimated to contain at least 11 billion barrels of oil. Stabroek is the focal point of Chevron’s $53 billion bid for Hess and is anticipated to yield over 1.2 million barrels of oil and gas per day by 2027.
Despite reporting a 12.6% decline in net profit for 2023 due to lower oil and gas prices, CNOOC achieved record production levels, driven by operations in domestic fields in Bohai Bay and overseas ventures in Guyana and Brazil.