México

Guyana

Trinidad
& Tobago

 




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

 

Hess market cap plunges $1.5 billion as major offshore project in Guyana halted

The Associated Press

maps4source/ Stabroek block off Guyana coast; 2c x 3 inches; 96.3 mm x 76 mm

- Seismic work in Guyana's offshore region halted by Venezuela
- Venezuela has long disputed neighbor Guyana's offshore claim

By Joe Carrol / Bloomberg

HOUSTON
Petroleumworld 12 26 2018

Hess Corp. tumbled the most in almost three years, wiping out $1.5 billion in market valuation, after work at the oil explorer's most promising international investment was halted by a Venezuelan blockade.

The intervention threatened to derail development of a 5 billion-barrel discovery off Guyana's coastline that is so important to Hess's future growth plans that it receives top billing in the New York-based driller's investor presentations. Although significant for partners Exxon Mobil Corp. and CNOOC Ltd., Hess is particularly dependent on the Guyanese project to generate production growth and cash flow into the next decade.

Venezuela, which has long disputed neighboring Guyana's offshore claims, “aggressively” interrupted the Exxon-led effort to map the sea floor on Dec. 22, U.S. State Department Deputy Spokesman Robert Palladino said on Sunday. By early Monday, the Venezuelan vessels had withdrawn, according to Bard Stenberg, a spokesman for vessel owner Petroleum Geo-Services ASA.

Meanwhile, the crew of the Ramform Tethys seismic boat remained aboard, Stenberg said in an interview. Seismic work, which involves bouncing sound waves off subsea rock formations, had yet to resume, Exxon spokeswoman Suann Guthrie said in an email.

Hess tumbled 12 percent to $36.43 in New York trading for its biggest daily drop since February 2016. The company's media office didn't respond to a telephone message left on Monday.

Expanding Reserves

Exxon shares fell 3.8 percent to $65.51, setting the oil titan on course for its worst annual performance since 1981. CNOOC's American depositary receipts fell 2.1 percent. An after-hours email to CNOOC's Hong Kong-based spokeswoman also wasn't immediately returned.

Exxon has upped its estimate for the field's size three times this year, most recently earlier this month when the company pegged the bonanza at 5 billion barrels. At current international crude prices, a treasure trove that large would be valued at about $265 billion, according to Bloomberg calculations.

Resolving the dispute may be complicated by the no-confidence vote in Guyana's National Assembly that toppled the coalition government late on Dec. 21. At the same time, U.S. President Donald Trump's administration is expected to decide within weeks whether to designate Venezuela a sponsor of terrorism, a move that would further isolate Nicolas Maduro's regime.

“We underscore that Guyana has the sovereign right to explore and exploit resources in its Exclusive Economic Zone,” the U.S. state department's Palladino wrote. “We call on Venezuela to respect international law and the rights of its neighbors.”

 

Original article

 

_________________________



We invite you to join us as a sponsor. Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

_________________________


Story by Joe Carrol from Bloomberg.


bloomberg.com 12 24 2018

_________________________

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.