Hess Corp. expresses hope for transparent election results in weeks ahead

May 11, 2020 News

The transparent and credible conclusion to the recount of the votes cast in the 2020 General and Regional Elections is a hope that most international actors are clinging to. Even the top Executives at major exploration companies offshore Guyana are part of this collective.

Hess Corporation’s CEO, John Hess

Chairman and Chief Executive Officer (CEO) for Hess Corporation, John Hess is one such person. The Hess CEO recently told industry leaders during his firm’s 2020 first quarter earnings call that Hess is expecting a transparent election result in the weeks ahead. The official noted that the United States and international observers have made statements encouraging the process to go to completion so that it would reflect the will of the Guyanese people. Upon noting this, Hess said, “When there is a new sitting government, a newly elected sitting government, we would assume the first, second and third priority for us, ExxonMobil and CNOOC, (the Stabroek Block partners) is to move the approval for the Payara development forward, working with the government.”
The official added, “So that pretty much explains the six to 12-month delay on Payara (ExxonMobil’s third development on the Stabroek block). And then a combination of the COVID-initiated delays in staffing the rigs has made us have a slowdown for a few months.”
In this regard, the official disclosed that ExxonMobil, which is the operator of the block, has had to temporarily idle two rigs due to the effects of measures to limit the spread of the novel coronavirus. He noted however that they should be going back to a four-rig programme in June. By that time, he said that the first, second and third priority will be development wells, but then the operator is expected to start feathering in exploration wells and appraisal wells too.
The Hess CEO said that the partners are experiencing a temporary interruption, but assured shareholders that it is not a major one. The CEO added, “…(Guyana) certainly still is our top investment priority and the top priority for Exxon…”
In addition to the delays noted by the official, he also disclosed that Hess Corporation suffered a net loss of US$2.4B in losses for the first quarter of 2020, including impairment and other after-tax charges of US$2.3B due to the effects of the novel coronavirus.
Despite this setback, Hess said that the firm’s priorities in this low price environment are to preserve cash, preserve capability and preserve the long term value of its assets. The Chief Executive Officer categorically stated that the company is in a strong position to manage through the market downturn and to prosper when oil prices recover with its low cost of supply and high return investments that will drive material cash flow growth and increasing financial returns.

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