By: Carl Surran Hess (NYSE:HES), Exxon Mobil (NYSE:XOM) and Chevron (CVX) slide in late afternoon trading Wednesday, closing -4.1%, -1.5% and -1.1% respectively, in reaction to news reports saying Venezuela may be preparing for a possible invasion into Guyana.
Reports from Brazilian intelligence suggest an imminent military move by the Venezuelan army against Guyana in the coming days, according to Defence Blog.
The current dispute centers on Essequibo, an oil- and mineral-rich area on the Venezuela-Guyana border, where Venezuela aims to determine its future through a referendum scheduled for Sunday, intending to transform the area into a Venezuelan state.
The impending referendum and the intensifying rhetoric from both countries have raised tensions and fears of potential military action in the region.
Guyana has emerged as the world’s fastest-growing new oil region in the past decade, with discoveries of more than 11B barrels of oil and gas; Exxon (XOM) and partners Hess (HES) and Cnooc already produce 400K bbl/day off Guyana’s coast and have said they could develop up to 10 offshore projects. (SA News)
