Exxon’s partner takes billion dollar blow in market trade value after Venezuelan incursion

One of ExxonMobil’s partners in the oil rich-Stabroek Block, Hess Corporation, took a huge blow to its market value after a Venezuelan military ship intercepted civilian vessels which were hired by Exxon to conduct seismic work within its licensed blocks.

After the calculations were done, it was noted that the incident which took place on December 22, cost Hess US$1.5B in market valuation. In fact, the company even tumbled 12 percent to US$36.43 on the New York Trading Exchange. Hess said that this is its biggest drop since February 2016. Hess also noted that its main partner, ExxonMobil, was affected on the Exchange as its shares fell 3.8 percent to US$65.51, setting the oil giant on course for its worst annual performance since 1981. Hess and ExxonMobil’s Chinese partner, CNOOC, only fell by a marginal 2.1 percent.

Hess noted that the intervention by Venezuela threatened to derail the development offshore Guyana which is important to its future growth plans. In fact, Hess is banking on the offshore project to generate enough production growth and cash flow to take it into the next decade.

Foreign Affairs Minister, Carl Greenidge told this news agency yesterday that he is still in communication with US officials and those from Exxon, in relation to the Venezuelan issue. He said that ramped up security, among other issues, are still being discussed.

Further to this, Hess said that it was pleased by the intervention by the American and Guyanese authorities in ensuring that the seismic work gets back on track.

Hess Corporation reminded that drilling has begun on the Haimara-1 exploration well offshore Guyana, the first of two planned exploration wells for this month. The Stena Carron drillship is drilling the Haimara-1 well, located 19 miles (31 kilometers) east of the Pluma-1 discovery in the southeastern part of the Stabroek Block.

Hess said that the Noble Tom Madden drillship will drill the second well, Tilapia-1, located three miles (five kilometers) west of the Longtail-1 discovery. The Tilapia-1 well is located in the growing Turbot area.

The main operator, ExxonMobil, is progressing with the Liza Phase One development, which has moved into its peak execution phase ahead of expected startup in early 2020.