Chevron recently announced plans to acquire Hess in a $53 billion all-stock deal. (Source: Shutterstock)
Chevron Corp. CEO Mike Wirth emphasized that the California company’s plan to acquire Hess Corp., and specifically its 30% interest in the Guyana offshore Stabroek Block, was an "important” deal at CERAWeek by S&P Global on March 19 in Houston.
“Number one, this transaction is an important one. It’s good for Chevron shareholders, it’s good for Hess shareholders, it’s good for the country of Guyana. I think it’s good for U.S. energy security, good for the industry,” Wirth said during a plenary session with S&P Global Vice Chairman Daniel Yergin.
For the record, Wirth said, his company has long sought to discuss the terms around Hess’ interest in Stabroek with both of the block’s partners, operator Exxon Mobil Corp. and China National Offshore Oil Corp. (CNOOC).
“We have worked hard to engage the Stabroek Block partners privately and constructively for several months. We tried to help them address the issues that they had raised and achieve the objectives that they had communicated to us,” Wirth said, responding to a question from Yergin about comments a day earlier from Exxon Mobil skipper Darren Woods on the same topic.
“We were surprised when a couple of weeks ago [they] abruptly ended those discussions and publicly announced that they had filed for arbitration,” Wirth said.
Chevron recently announced plans to acquire Hess in a $53 billion all-stock deal. The dispute at hand revolves around Hess’ 30% interest in Stabroek. Both Exxon and CNOOC have expressed that they believe they have a right of first refusal over it.
In terms of doubts around Exxon’s intention to pay a premium above the premium Chevron will ultimately pay for Hess, Woods downplayed that hype and said his company had no interest in acquiring Hess.
For his part, Wirth said: “We did extensive diligence on the current operating agreement and have extensive experience with these types of agreements around the world, as does Hess, and we remain very confident in our understanding of the language and look forward to seeing the firms in arbitration.”
Recommended Reading
Woodside, Chevron Agree to Swap Oil, LNG Assets
2024-12-19 - Woodside and Chevron have entered an agreement that shifts interests in oil, LNG and carbon capture projects with Chevron also paying Woodside $400 million.
Chevron JV Plans 4-GW Project to Fulfill US Data Center Power Needs
2025-01-28 - Chevron U.S.A. Inc., Engine No. 1 and GE Vernova will develop the natural gas-fired power plants co-located with data centers amid President Trump’s push for AI dominance.
Marketed: Hess 3-Well Package in Bakken Shale
2024-12-11 - Hess Corp. has retained EnergyNet for the sale of a three-well Bakken Shale package in Mountrail and Ward counties, North Dakota.
China's CNOOC Sells US Assets to Britain's INEOS
2024-12-15 - The Chinese oil and gas major said CNOOC Energy Holdings U.S.A. entered into a sales agreement with a subsidiary of INEOS relating to CNOOC's upstream oil and gas assets in the U.S. part of the Gulf of Mexico.
Energy Transfer’s Lake Charles LNG Closer to FID with Chevron Deal
2024-12-19 - Energy Transfer entered a 20-year agreement to supply Chevron with 2 mtpa of LNG from its Lake Charles LNG export facility, which is awaiting a final investment decision.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.