Exxon, Hess To Face Off Over Chevron Deal For Oilfield Riches

Exxon Mobil and Hess are set to face each other in court to determine the fate of Chevron’s $53-billion acquisition of Hess, including a prized stake in Guyana’s prolific oilfields, Sheila Dang reported for Reuters.

Chevron and Hess argue that the right of first refusal does not apply to the sale of the entire company. I Photo: Hess

The deal, first announced in October 2023, is one of the biggest in the oil industry in recent years and is key to Chevron CEO Mike Wirth’s strategy for boosting the company’s performance.

However, the transaction has stalled due to arbitration disputes filed by Exxon and China’s CNOOC—Hess’ joint venture partners in Guyana—who claim a contractual right of first refusal to purchase Hess' 30% stake in the Stabroek Block.

Chevron and Hess argue that the right of first refusal does not apply to the sale of the entire company.

If the arbitration tribunal rules in favor of Exxon and CNOOC and no resolution is reached, the deal could collapse.

The confidential hearing will take place in London under the International Chamber of Commerce (ICC), with the dispute governed by UK law, according to a source familiar with the agreement.

The Stabroek Block, operated by Exxon, is estimated to contain over 11 billion barrels of oil equivalent, making it a cornerstone of Guyana’s emergence as one of the world’s fastest-growing oil producers.