Arbitrators have made a decision in the legal dispute between Exxon and Hess concerning a major oilfield project in Guyana, reported Reuters, citing two sources familiar with the matter.
The dispute focuses on Chevron’s $53bn acquisition of US oil producer Hess, which includes a 30% stake in Guyana’s Stabroek block.
Exxon holds a 45% interest in the block and operates the joint venture.
The deal is a key part of Chevron CEO Mike Wirth’s strategy to improve company performance, but this has been delayed due to arbitration claims from Exxon and its joint venture partner CNOOC over pre-emptive rights to Hess’ project interest.
The Stabroek block could be a valuable addition to Chevron’s depleting oil and gas reserves.
This ruling is crucial as it will determine whether Chevron can proceed with its planned acquisition of Hess.
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By GlobalDataThe International Chamber of Commerce in Paris, France, is responsible for overseeing the arbitration case and is currently reviewing the decision before releasing it to the involved parties. The specifics of the arbitrators’ decision and the release date remain undisclosed.
An Exxon spokesperson was quoted by the news agency as saying: “We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves.”
Chevron announced its intention to acquire Hess in October 2023.
Chevron and Hess contend that the right of first refusal clause does not apply to the sale of the entire company.
In the event they lose the arbitration, or if they fail to reach an acceptable resolution with Exxon and CNOOC, the acquisition agreement stipulates that the deal would collapse.
