Chevron needs Hess’ Guyana Oil Assets to increase reserves

Chevron relies on Hess Corp’s billion-back year to increase his assets with high-quality Guyana areas, in which billions of Barrel were discovered oil equivalent.

The replacement relationship between Chevron has decreased in recent years and its oil and gas reserves have now declined to the lowest level for at least one decade, according to a Reuters analysis.

The falling reserves and the reserve replacement ratio (RRR) of less than 100% make the proposed recording of Hess Key to increase the asset base from Chevron and RRR at short notice.

According to the result of the fourth quarters at the end of the last month, Chevron was that his reserve replacement ratio (RRR) was -4% for 2024-4%, with the greatest reduction in the proven reserves from the production and sale of oils, slate and tight Assets were created in Canada. The additions to reserves came mainly from extensions and discoveries in the Perm and DJ pools.

Without effects from the sale and acquisitions of assets, the replacement rate of organic reserves was 45%, said Chevron and reminded the investors that the reserves associated with slate development are limited to a five-year planning and intended period per SEC regulations.

During the last 10-year period, the replacement rate of Chevron was 88%, it said.

The ratio of less than 100% means that Chevron brims reserves faster than it can replace them.

The acquisition of Hess in the amount of $ 53 billion would help increase the reserves and the RRR, thanks to the 30% participation of Hess in the Stabroek-Block Offshore Guyana, in which the operator Exxon Barrel Has found oil equivalent resources.

However, the deal has to delete several milestones before closing. The most important – and potentially problematic – is the arbitration that Exxon and CNOOC, the third partner in Guyanas productive block, are looking for Hess with Chevron.

Exxon and Chinas CNOOC claim that their current partnership conditions with Hess Corp in the Stabroek block give them the right to refuse the first refusal of the acquisition of the stake in Hess.

By Charles Kennedy for Oilprice.com

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