ExxonMobil and Hess executives sought to downplay concerns about the potential impact of recent political turmoil in Guyana on their operations, writes Kathrine Schmidt.

The government, set to play a critical role as the nation prepares for an unprecedented influx of new oil revenue via the Liza project and others, saw a potential shift in the balance of power just before Christmas, as Prime Minister David Granger lost a no-confidence vote.

That vote may lead to new elections in the coming months but ExxonMobil chief executive

Darren Woods, told analysts in a results conference call that the US supermajor takes a long-term view, expecting to have a presence in the country for 30 to 40 years.

“So we have been engaged with the sitting government, with the opposition, with communities making sure that the development and what we’re doing is understood, and the people are aligned on that,” Woods said.

“So the opposition understands the contracts that we have in place. I think they understand the value that the development will bring to Guyana and the people of Guyana. So I think it’s very consistent with how we think about a long-term approach to engaging with companies and countries.”

Hess chief executive John Hess expressed similar sentiments when asked about the issue on the US independent’s own earnings call.

“Both major parties, the current ruling party, as well as the opposition party, have stated that they are supportive of the development and have consistently stated their intention to honor our PSCR contract,” he said.

Both companies emphasised that the first phase of the Liza development is on track to planned first oil in early 2020, with the second phase scheduled to begin operations by mid- 2022.

“With the recent no-confidence vote and elections still being scheduled, there is absolutely no impacts to our exploration or development activities,” Hess added.

“The government [is looking at] a final approval for the plan of development. It’s just a question of getting a third-party engineering company in place, which is under way, to work with ExxonMobil and to basically vet the details of the plan of development.

“We anticipate getting that [final approval] in the first quarter and moving forward.”