Well, well, well! Look who’s making headlines today – none other than Hess Corp., who’s currently in the process of being swooped up by Chevron (NYSE:CVX). They’ve just taken a sudden 2.1% nosedive after the Venezuelan President Nicholas Maduro made a rather dramatic announcement. He declared that he’s deployed soldiers on the eastern Caribbean coast of Venezuela, all because their neighbor Guyana received a warship from the UK. What in the world is going on down there, folks?
According to a Bloomberg report, President Maduro hollered on state TV, “Venezuela has the right to defend itself, to tranquility, to peace.” Sounds like he’s pretty riled up, doesn’t it? And he didn’t stop there. He went on to accuse Guyana of violating some agreement to continue talks without brandishing any weapons. “We do not accept provocations, threats from anything or anyone,” Maduro ranted.
If that wasn’t enough, Navy Commander Neil Villamizar decided to hop into the limelight alongside Maduro. He mentioned to Bloomberg that a whopping 5,682 soldiers were being deployed. Phew, that’s a lot of military muscle moving around because of a warship!
This whole ruckus has sprung up after Venezuela and Guyana seemingly reached a consensus earlier this month. The countries put up a show of declaring to the world that they will not resort to using any force over the disputed Essequibo oil-rich region. Tensions seemed to have simmered down after a bit of dialogue between the Guyanese President and Maduro. But it looks like that peaceful vibe was short-lived!
Now, for all the investors out there keeping an eye on their wallets, this ain’t no small squabble. You see, Chevron (NYSE:CVX) is throwing a huge $53 billion party, and they’re planning on dragging Hess (NYSE:HES) along for the ride. The problem is, the oilfields off the Guyana coast that this takeover hinges on could now be in a spot of bother. And we all know what happens when the oil industry hits a rough patch – just ask Exxon Mobil (XOM), who’s already taken a 1% knock as a result of this mess.