PARIS, France – The Paris-based International Chamber of Commerce (ICC) Friday gave the green light to the US-based oil company, Chevron to buy into one of the world’s most valuable oil development in the Caribbean country of Guyana, which holds more than 11 billion barrels of oil and is considered one of the most lucrative and fastest growing in the world.
The ruling means that Chevron, America’s second-largest oil company can move forward with its acquisition of a smaller rivel, Hess, for US$53 billion after a two year wait to close the deal.
Energy observers said Chevron’s acquisition, means that the company now gets a piece of a lucrative oil project off the shores of Guyana and that it also gains an array of other assets, from North Dakota to Southeast Asia, that will extend the company’s runway of drilling opportunities and give it the ability to better compete with the likes of Exxon, its larger U.S. rival.
Exxon and Chevron have been fighting over Hess’s stake in Guyana for more than a year, in a dispute rooted in the fine print of a contract that has never been made public..
“We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved,” an Exxon spokesman said in a statement.
The Guyana development is a partnership between three companies. Exxon operates the project and holds the largest stake of 45 percent, followed by Hess 30 percent and CNOOC, a Chinese state-owned oil company with 25 percent.
The International Energy Agency (IEA) said the project is considered one of the most promising in the world and is expected to single-handedly produce around one percent of the world’s oil within a few years.
