Guyana – Hess Buys 750 Million Of Carbon Credit

In order to protect Guyana’s mostly intact Amazonian rainforests for future generations, US-owned Hess Corporation, a consortium partner in the country’s offshore oil industry, has pledged to purchase $750 million worth of carbon credits from the South American nation over the next ten years.

The deal was approved late on Friday under the United Nations program to reduce emissions from deforestation and forest degradation by Guyanese government representatives and executives from the New York-based Hess (REDD).

The nation has negotiated two significant deals of this nature in the last ten years. Norway approved a pact in 2009 to provide $250 million to assist assure the country’s 18 million hectares of forest will stay intact.

As it seeks to guarantee minimum exploitation of its forest resources in a nation the size of Britain or the US state of Idaho with less than one million people, the government says it will continue to explore efforts to acquire new partners in the carbon credit market.

John Hess, Chief Executive of Hess Corporation at the signing ceremony stated, “Guyana is one of the most heavily forested countries in the world. We admire the efforts that Guyana has undertaken for years to protect the country’s forest, and the government’s constant efforts to combat climate change and provide a strong model for other countries, other businesses, and other governments.”

About 30% of the $750 million, according to Vice President Bharrat Jagdeo, would be put aside for improvements in Native American settlements. In Guyana, there are nine such tribes, which make up around 10% of the total population.

For this arrangement, I wish to congratulate Hess Corporation. It is undeniably revolutionary and advances us toward the goals we were pursuing, according to Jagdeo.

Following a significant 2015 discovery close to the Suriname-Guyana border, Hess is a significant 35 percent partner with ExxonMobil and CNOOC of China working in Guyana’s lucrative offshore oil and gas sector.