An arbitration hearing regarding Chevron’s acquisition of Hess Corp.’s Guyana portfolio is set for May 2025. (Source: Shutterstock.com)
Editor's note: This breaking news article has been updated with comments from Exxon Mobil.
A pivotal arbitration hearing concerning Chevron’s acquisition of Hess Corp.’s position offshore Guyana is set for May 2025.
A decision regarding the arbitration is expected in the following three months after the hearing, Chevron said in a July 31 filing with the Securities and Exchange Commission.
“Chevron and Hess had expected and requested that this hearing be held earlier, but the arbitrators’ common schedules did not make this possible,” Chevron wrote in the filing.
U.S. supermajor Chevron Corp. has been working through the regulatory process to close the $53 billion Hess acquisition since the deal was announced in October 2023.
A Hess subsidiary, Hess Guyana Exploration Ltd., is currently in arbitration with respect to the right of first refusal in an agreement with Exxon Mobil Corp. and China National Offshore Oil Corp. (CNOOC) regarding the Stabroek Block offshore Guyana.
Hess is part of the Exxon-led consortium developing the prolific Stabroek Block, the world’s latest and hottest offshore oil discovery. Exxon owns a 45% stake in the Stabroek joint venture (JV), while Hess owns 30%; CNOOC owns the remaining 25% interest.
Hess owns an attractive asset base in the Gulf of Mexico and in the Bakken Shale play of North Dakota, but Chevron’s interest in acquiring Hess mostly touched on the ownership interests in the Guyana JV, analysts say.
“Exxon and CNOOC continue to ignore the plain language of the operating agreement, and Chevron and Hess remain confident that the arbitration will confirm that the Stabroek [right of first refusal] does not apply to the merger,” Chevron said in the filing.
A spokesperson for Exxon Mobil told Hart Energy: "As we’ve stated previously, this matter is too important to rush through – all relevant facts and circumstances must be taken into consideration, and this will take time. We appreciate the arbitration panel giving this issue the due consideration it deserves."
When reached for comment, Chevron repeated the same statement from the filing and did not immediately respond to additional questions.
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