UPDATE 2-Guyana takes no side in Exxon-Chevron dispute -vice president
(Adds Exxon, Chevron, Hess comments in paragraphs 9-13)
By Kiana Wilburg and Sabrina Valle
GEORGETOWN, Feb 28 (Reuters) - Guyana will accept whatever decision emerges from discussions between U.S. oil firms over the sale of Hess Corp in the dispute between Exxon Mobil and Chevron, Vice President Bharrat Jagdeo said on Wednesday.
Exxon this week said it intended to assert its right on Hess's 30% stake in the giant Stabroek offshore oil field using a contractual right of first refusal over any sale. Chevron last October proposed to acquire Hess largely for its Stabroek stake.
Guyana is ready to welcome Chevron into the country, but would also accept a result in which Chevron's acquisition of Hess does not go through and Exxon ends up buying Hess' shares in the consortium, Jagdeo said.
"Whatever is the outcome we will live with it," Jagdeo told Reuters on the sidelines of a meeting of Caribbean leaders in Georgetown. "This is a matter for Exxon, Chevron and Hess (to resolve)".
Chevron's $53 billion deal for Hess would not need Guyana's approval, Jagdeo said. "Chevron is a company with a global reputation, and we welcome their entry into Guyana," Jagdeo said.
If the sale to Chevron does not go through, Guyana would also accept the outcome, he said.
The companies have different interpretations over the right of first refusal provision in the consortium's joint operating agreement. Exxon, Hess and China's CNOOC currently control all oil production in Guyana.
Chevron and Hess have said the pre-emptive right does not apply, since their deal involves the merging of two companies, rather than the sale of the Guyana asset.
"There is no possible scenario in which Exxon or CNOOC could acquire Hess' interest in Guyana as a result of the Chevron-Hess transaction," Chevron and Hess said this week. Chevron is committed to closing the deal by mid-year, it said.
Exxon believes the right of first refusal applies. Not pursuing its right "sets a bad precedent for ourselves and the industry."
Guyana is not participating in any discussions over potential changes in the Joint Operating Agreement which is a document between the parties only, Jagdeo said.
"However it is resolved, and I guess it will be resolved, (will be) in a manner consistent with the agreements they have and within the laws in the US." (Reporting by Kiana Wilburg in Georgetown and Sabrina Valle in Houston)
