The Alliance For Change has expressed concern over the inclusion of the Chevron Corporation in the Stabroek Block oil deal, warning that the lack of information from the Government of Guyana on Chevron’s entry is worrying.

Chevron recently took over the Hess Corporation’s shares in the Stabroek Block after winning a legal battle with ExxonMobil. The $53 billion acquisition gives Chevron a 30% stake in the offshore oil development. 

But AFC Chairman, David Patterson, said the decision is not a cause for celebration, since there is no information on Chevron’s position on a number of issues related to the local oil industry.

He said while Chevron is a top oil producing company, he is not confident that the company’s entrance would be helpful.

“Time will tell if Chevron will be forthcoming with information but just carries us back to what the concern is from the initial stage, the lack of information that is being shared by the government on this issue, because we don’t know what is Chevron’s position on on the carbon credits which Hess has purchased, we don’t know Chevron’s position on several of the issues which we have raised like unlimited insurance coverage,” Patterson said.

He questioned whether ExxonMobil will be given the green light in the Chevron partnership to be the operator as was the case with the joint venture with Hess, ExxonMobil and CNOOC.

He also said the country has to zoom in closely on the matter, as Chevron operates on a large scale in the Venezuelan oil market.

Mr. Patterson said the question of interest will come into play, and Guyana will have to ensure it has solid safeguards.

“The question of the license renewal in Venezuela by the Trump administration is something that we have to pay close attention to. In a way, at one side it can be advantageous for us, where Chevron can operate unhindered with ExxonMobil in our waters closer to the Venezuelan border but it also poses a challenge for us if Chevron prioritizing restarting and refinancing their operation in Venezuela,” Mr. Patterson noted.

Patterson wants the Government to be a bit more forthright with information on the partnership.

AFC Leader, Nigel Hughes also wants government to call a stakeholder engagement on the matter and map out how various scenarios will be addressed should the need arise, saying that while Chevron’s presence is welcomed, the concerns cannot be ignored.

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