Chevron expects to see an increase in the current estimate of oil resources in Guyana

Chevron announced on Wednesday that it anticipates that an oilfield in Guyana, which is prolific and has a large amount of recoverable resources, could contain more than its current estimate of 11 Billion barrels of oil. Mark Nelson, Chevron's Vice Chairman, said that although the company has not forecasted it, he expects upside.

Chevron acquired a 30% stake of the Stabroek Block, in Guyana, earlier this year after it won a long legal battle with Exxon Mobil. Exxon Mobil operates the block and has a 45% share. CNOOC, a Chinese company, holds the remaining 25 percent.

Chevron’s Investor Day event included financial guidance for 2030, including Hess. It also featured a presentation slide that showed the growth of production capacity in Guyana over time. Nelson stated that there is still room for exploration in Guyana, and Chevron would be happy to assist.

He said, "There are some deeper reservoirs that need to be tested and we look to working with our partner to do this."

Jack Williams, senior vice president of Exxon, said that 11 billion barrels were the "best estimate" they had. However, the company would continue to explore.

Exxon announced on Wednesday that the daily oil production in Stabroek has reached 900,000. The company expects a total production of 1.7 millions bpd in the future from eight developments across the country.

Nelson, Chevron's spokesperson, said that everything we shared today reflects Exxon's perspective. "That's the kind of thing a partner like Exxon would do." Sheila Dang reported from Houston, Kemol King contributed additional reporting; Nathan Crooks edited the story.

(source: Reuters)