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Mark Nakamura
Chevron announced it finalized the acquisition of Hess after satisfying all required conditions, including a beneficial arbitration decision regarding Hess's offshore assets in Guyana.
A day prior, the U.S. Federal Trade Commission (FTC) removed barriers to the agreement, allowing Hess CEO John Hess to join the board of Chevron, the report indicated.
The ruling by the International Chamber of Commerce in Paris favoring Chevron regarding the Guyana assets marked a significant win for the company. The Hess agreement would not have been finalized if ExxonMobil had won the case.
In March 2024, ExxonMobil initiated legal action with the ICC to claim its right of first refusal for acquiring Hess's share in the Stabroek project located in Guyana. Exxon operates the project and holds a 45% stake in Stabroek, while China National Offshore Oil Corporation (CNOOC) has 25%, and Hess possesses 30%.
Chevron aimed to obtain Hess's ownership in the project following the acquisition. Exxon was of the opinion that the pre-emption clause in the agreement among the participants in the Guyana project, which granted Exxon and CNOOC the first right of refusal to acquire the share in the oil field, was relevant to the transaction.
ExxonMobil stated on July 18 that it did not agree with the ICC's ruling but “honored the arbitration and dispute resolution process.”
source: reuters.com
A day prior, the U.S. Federal Trade Commission (FTC) removed barriers to the agreement, allowing Hess CEO John Hess to join the board of Chevron, the report indicated.
The ruling by the International Chamber of Commerce in Paris favoring Chevron regarding the Guyana assets marked a significant win for the company. The Hess agreement would not have been finalized if ExxonMobil had won the case.
In March 2024, ExxonMobil initiated legal action with the ICC to claim its right of first refusal for acquiring Hess's share in the Stabroek project located in Guyana. Exxon operates the project and holds a 45% stake in Stabroek, while China National Offshore Oil Corporation (CNOOC) has 25%, and Hess possesses 30%.
Chevron aimed to obtain Hess's ownership in the project following the acquisition. Exxon was of the opinion that the pre-emption clause in the agreement among the participants in the Guyana project, which granted Exxon and CNOOC the first right of refusal to acquire the share in the oil field, was relevant to the transaction.
ExxonMobil stated on July 18 that it did not agree with the ICC's ruling but “honored the arbitration and dispute resolution process.”
source: reuters.com
