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Hess (NYSE:HES) said Wednesday the consortium that controls Guyana’s oil production is prepared to relinquish 20% of the Stabroek oil block, but would not concede any areas where it now produces or intends to produce oil in the future.
Hess (HES) CEO John Hess told the CERAWeek energy conference in Houston that some misinformation has spread related to the production sharing contract agreement with Guyana’s government, which has said it plans to reclaim 20% of the block and may offer it to other companies.
This was always a requirement, which the consortium agreed with the government when signing the PSC, John Hess said.
But the 20% would not come from the “prospective areas, not going to be where we have exploration plan, not going to be future expiration plan, not going to be where we have the developments in production.”
The government has assured the consortium the PSC will not be amended, the CEO said.
Hess Corp. (HES) is part of the Exxon-led (XOM) group that controls the Stabroek block which has been responsible for a series of massive discoveries in Guyana.
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