In spite of registered calls in the media for the Stabroek Block Production Sharing Agreement (PSA) to be renegotiated, Hess Corporation says it is not the least bit moved by this as it has received assurances from Opposition Leader, Bharrat Jagdeo and President, David Granger, that they will respect the sanctity of the contract.
Specifically making this utterance at Barclays CEO Energy-Power Conference which was held in New York yesterday was John B. Hess, the Chief Executive Officer (CEO) of Hess Corporation. The Head of the US oil company, which has a 30 percent stake in the Stabroek Block, told the conference in no uncertain terms that the calls for renegotiation, “have no substance.”
The CEO said, “Both the current President Granger as well as the opposition party leader have assured us that they are not going to change the PSA. I think that’s an important thing to note there. They need our joint venture investment in their country.”
Further to this, the Hess CEO noted that the Gross Domestic Product (GDP) for Guyana is about $3 billion. As Guyana ramps up in production, he asserted that the nation should start generating from Hess, ExxonMobil, and CNOOC/NEXEN’s oil investments about $2 billion to $4 billion a year, maybe even $6 billion a year.
Hess said that obviously, it could double or triple the GDP while noting that the GDP per capita will be about $11,000 by 2025. The official added that this would make Guyana GDP per capita, comparable to oil producing giants like Mexico and Brazil.
“So investing on a disciplined basis but on an accelerated basis is interest is in the interest of Guyana as well as the interest of the investors,” the CEO concluded.
