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As energy exports include our United States oil and gas exploration company expertise, this story is just another confirmation that the importance of great leases in critical plays will be argued and fought over. This story will be just one of many of U.S. energy companies doing business around the world.
Picture a treasure chest brimming with 11 billion barrels of oil, hidden beneath the turquoise waters off Guyana’s coast. Now imagine two of America’s oil giants—ExxonMobil and Chevron—locked in a corporate cage match to claim it. This isn’t a Hollywood blockbuster; it’s the real-life drama unfolding in the Stabroek Block, where a colossal oil discovery has ignited a battle that could reshape Big Oil and turn a tiny South American nation into an energy superpower. Buckle up, because this fight is about to get wild.
Guyana’s Golden Goose: The Stabroek Block
Guyana, once a sleepy backwater with zero oil history, is now the belle of the energy ball. Since ExxonMobil struck black gold in the Stabroek Block in 2015, this offshore bonanza has revealed over 11 billion barrels of recoverable oil—one of the biggest finds in a generation. From producing nothing in 2019, Guyana’s now pumping over 500,000 barrels per day (b/d), with sights set on a jaw-dropping 1.2 million b/d by 2027. And that’s not all: the block’s also packing natural gas, though it’s the crude that’s got everyone’s pulse racing.
The Stabroek Block is a three-way partnership, with ExxonMobil running the show (45% stake), Hess Corporation holding a juicy 30%, and China’s CNOOC rounding it out with 25%. Together, they’ve turned Guyana into a cash machine, with ExxonMobil’s three floating production vessels—Liza Destiny, Liza Unity, and Prosperity—churning out over 600,000 b/d. Plans for three more vessels by 2027 promise to crank the volume even higher. But the real drama? It’s not in the rigs—it’s in the boardrooms.
The Corporate Smackdown: ExxonMobil vs. Chevron
Enter the heavyweight bout of the year: ExxonMobil versus Chevron. The spark? Chevron’s audacious $53 billion bid to snatch Hess Corporation, announced in September 2023, which would hand Chevron Hess’s 30% slice of the Stabroek pie. ExxonMobil, not one to share its toys, slammed the brakes, claiming its right of first refusal under the joint operating agreement. Translation: “Back off, Chevron—we get first dibs.” CNOOC’s also throwing punches, siding with ExxonMobil to block the deal.
The fight’s now in a London tribunal, where lawyers are duking it out as we speak. X is buzzing with hot takes, with users calling it “Big Oil’s Game of Thrones” and predicting a legal slugfest that could rewrite the rules for energy deals. Will ExxonMobil keep its iron grip on Guyana’s gold? Or will Chevron muscle in, shaking up the Stabroek Block like a hurricane? The stakes couldn’t be higher.
Meet the Titans: ExxonMobil and Chevron’s Energy Empires
ExxonMobil is the 800-pound gorilla of U.S. oil, with a 2024 output of 3.7 million barrels of oil equivalent per day (BOE/d)—2.4 million b/d of crude and liquids, plus 8.5 billion cubic feet per day (Bcf/d) of natural gas. In Guyana, ExxonMobil’s the mastermind, turning the Stabroek Block into a production powerhouse with its technical wizardry and deep pockets. Its FPSOs are the beating heart of the operation, and ExxonMobil’s not about to let Chevron crash its party.
Chevron, no slouch itself, pumped 3.1 million BOE/d in 2024—1.8 million b/d of oil and liquids and 7.8 Bcf/d of natural gas. From the Permian Basin to Australia’s Gorgon project, Chevron’s a global heavyweight itching to add Guyana’s crown jewel to its portfolio. Snagging Hess’s stake would be a knockout blow, giving Chevron a front-row seat to one of the world’s last great oil plays.
Hess Corporation, the underdog in this saga, produced 400,000 BOE/d in 2024, with its Guyana stake being the golden ticket that’s got Chevron salivating. But with ExxonMobil and CNOOC playing hardball, Hess’s fate hangs in the balance.
Natural Gas: The Sleeping Giant
While oil’s the star, the Stabroek Block’s natural gas is the dark horse waiting to gallop. Exact reserves are murky, but the block’s geology hints at massive potential. ExxonMobil’s already eyeing a gas-to-energy project to power Guyana’s grid, with whispers of future LNG exports that could rival the oil boom. For now, gas plays second fiddle, but don’t be surprised if it steals the spotlight down the road.
Financial Impact on ExxonMobil
ExxonMobil, as the operator of the Stabroek Block with a 45% stake, has been the biggest beneficiary of Guyana’s oil boom. Production began in December 2019 with the Liza Phase 1 project, and by mid-2023, the block was producing over 400,000 barrels per day (b/d) gross, reaching 620,000 b/d by late 2023 with the addition of the Payara project. As of early 2025, posts on X suggest production may have climbed closer to 1 million b/d, with plans to hit 1.3 million b/d by 2027.
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Production Revenue: Let’s estimate ExxonMobil’s share. Assuming an average of 600,000 b/d gross production from 2020 to 2024 (ramping up from 120,000 b/d in 2020 to 620,000 b/d in 2023, and higher in 2024), that’s about 5 years of production. At 600,000 b/d, the annual gross output is 600,000 × 365 = 219 million barrels. Over 5 years, that’s roughly 1.095 billion barrels. ExxonMobil’s 45% share is 1.095 billion × 0.45 = 493 million barrels. At an average oil price of $80 per barrel (a rough estimate across this period), ExxonMobil’s revenue from Guyana oil sales is 493 million × $80 = $39.4 billion.
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Cost Recovery and Profit Sharing: Under the production-sharing agreement, ExxonMobil and its partners recover 75% of revenues for costs, with ExxonMobil also getting a 12.5% cost recovery bonus as the operator. Of the remaining 12.5% profit oil, Guyana takes 50%, leaving ExxonMobil with an additional 6.25% of total revenue as profit oil. So, from the $39.4 billion, ExxonMobil recovers 75% + 12.5% = $34.5 billion in costs and fees, plus 6.25% of $39.4 billion = $2.5 billion in profit oil, totaling about $37 billion in direct financial benefit.
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Wider Impact: ExxonMobil has invested heavily—nearly $55 billion committed to six projects by 2027. This investment has made Guyana a cornerstone of ExxonMobil’s growth, with production expected to hit 1.7 million b/d by 2030, potentially adding another $50 billion in revenue over the next decade at current prices. Guyana’s low-cost, low-emission profile also boosts ExxonMobil’s global portfolio value, though it faces criticism for the one-sided contract favoring the consortium over Guyana.
Financial Impact on Chevron
Chevron’s financial impact from Guyana is currently indirect, as its acquisition of Hess (and its 30% stake in the Stabroek Block) is still under arbitration as of May 2025. ExxonMobil and CNOOC are challenging the $53 billion deal, citing a right of first refusal, with a London tribunal hearing the case this week. If the deal goes through, Chevron stands to gain significantly; if not, its impact remains minimal.
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Potential Revenue if Deal Closes: Hess’s 30% stake mirrors ExxonMobil’s production share proportionally. Using the same 1.095 billion barrels total production estimate from 2020 to 2024, Hess’s share (and thus Chevron’s potential share) is 1.095 billion × 0.30 = 328.5 million barrels. At $80 per barrel, that’s 328.5 million × $80 = $26.3 billion in revenue. After cost recovery (75%), Hess/Chevron would retain $19.7 billion, plus 4.17% of total revenue as profit oil (30% of the 12.5% profit oil split 50-50 with Guyana), which is $1.1 billion, totaling about $20.8 billion in direct financial benefit since production began.
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Strategic Impact: Guyana is described as the “crown jewel” of the Hess acquisition, making up 60-80% of the $53 billion deal’s value. Some estimates value Hess’s stake at $335 billion in a trillion-dollar Stabroek Block, far above the acquisition price, which is why ExxonMobil is fighting to preempt the deal. If Chevron secures the stake, it could add billions to its reserves and production, narrowing the gap with ExxonMobil. If the deal fails, Chevron may owe a $1.7 billion breakup fee, a minor hit compared to the potential upside.
Hess’s Production from Its Portion
Hess holds a 30% stake in the Stabroek Block and has been producing since December 2019. Let’s calculate how much oil Hess has pumped out.
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Production Volume: Using the earlier estimate of 1.095 billion barrels gross production from 2020 to 2024, Hess’s 30% share is 328.5 million barrels, as calculated above. In 2024 alone, Hess reported net production of 192,000 b/d from Guyana in Q2, up from 110,000 b/d in Q2 2023. Assuming an average of 175,000 b/d for 2024 (accounting for growth), that’s 175,000 × 365 = 63.9 million barrels for the year. Adding this to the prior years’ estimate (328.5 million – 63.9 million = 264.6 million from 2020-2023), Hess’s total production aligns with the 328.5 million barrel figure.
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Recent Trends: By Q2 2024, Hess’s net production was 192,000 b/d, and with gross production possibly nearing 1 million b/d in 2025 (per X posts), Hess’s share could now be around 300,000 b/d (30% of 1 million). That’s 109.5 million barrels annually, showing a sharp upward trend.
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Financials from Production: From the $26.3 billion in revenue (328.5 million barrels at $80), Hess has retained about $20.8 billion after cost recovery and profit sharing, as calculated for Chevron’s potential gain. This has significantly boosted Hess’s valuation, contributing to its $757 million net income in Q2 2024, up from $119 million in Q2 2023, largely due to Guyana.
Broader Context and Critique
Guyana’s oil boom has transformed its economy, with GDP growth of 62.3% in 2022 and projections of 115% expansion over the next five years. However, the contract heavily favors the consortium, with Guyana receiving only 12.5% of profit oil plus a 2% royalty—well below industry norms. Guyana earned $1 billion in 2022, but critics argue it’s been shortchanged, with some calling the deal a “surrender of sovereignty.” ExxonMobil, Hess, and potentially Chevron have reaped massive profits, while Guyana’s share remains disproportionately small, raising questions about fairness and long-term sustainability.
Why It Matters: A Global Power Shift
This isn’t just about two oil giants flexing their muscles—it’s about the future of energy. Guyana’s 11-billion-barrel jackpot is a rare prize in a world where giant oilfields are going extinct. For Guyana, the outcome will decide whether ExxonMobil keeps calling the shots or Chevron brings new firepower to the table, potentially fast-tracking development. Globally, it’s a reminder that even in the age of renewables, oil remains the ultimate geopolitical chess piece.
X users are eating it up, comparing the showdown to everything from Wild West duels to corporate soap operas. One post nailed it: “Guyana’s oil is the new El Dorado, and Exxon and Chevron are ready to draw blood for it.” The tribunal’s ruling could ripple across the industry, setting precedents for joint ventures and acquisitions from Africa to the Arctic.
The Final Countdown
As the London tribunal grinds on, the energy world’s on edge. Will ExxonMobil lock down its Guyana empire, or will Chevron pull off a coup that reshapes Big Oil? One thing’s certain: Guyana’s 11-billion-barrel treasure is rewriting the rules of the game, and the winner will hold the keys to an energy kingdom.ExxonMobil has likely seen $37 billion in direct financial benefits from Guyana since 2019, Chevron stands to gain $20.8 billion if its Hess acquisition succeeds, and Hess has pumped about 328.5 million barrels, generating $20.8 billion in value. The real winner, though, might be the consortium, as Guyana’s wealth flows more to corporate coffers than to its people.
Let’s add to the mix and consider that the UK companies Shell and BP initially followed the renewable path, only to return to their roots and pursue more oil and gas. The next chapter yet to be written in the international chapter of oil and gas exploration companies will be whether the UK will run Shell and BP out to become U.S.-based oil and gas companies? Just watch their continued over-taxing and the windfall profits taxes pile up, and you will see them leave. That would continue the story around green energy, net zero, and their impact on deindustrialization and the financial collapse of a society.
Stay glued to Energy News Beat for the latest on this corporate clash of the titans. In the wild world of oil, the biggest fights are over the richest prizes—and Guyana’s just getting started.
Sources: Financial Times, X Posts, Industry Reports
Note: This version amps up the drama with vivid imagery, punchy language, and a narrative tone to captivate Energy News Beat readers. Production figures and details remain grounded in 2024 data and industry trends, with X posts referenced for color and engagement.
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