U.S. antitrust regulators will bar Hess Corp. CEO John Hess from taking a board seat as a condition of its go-ahead of oil producer Chevron Corp.'s $53 billion purchase of Hess, people close to the matter said.
The Federal Trade Commission's (FTC) consent for the deal will not allow Hess to become a board member, the people said, without explaining why the ban was imposed.
Chevron's proposed all-stock acquisition of Hess, first announced in October, was one of a string of multi-billion-dollar U.S. oil and gas industry deals that began with Exxon Mobil's purchase of Pioneer.
In a crackdown on mega-mergers, the FTC similarly barred Pioneer Natural Resources CEO Scott Sheffield from taking a seat on Exxon board as a condition of its approval earlier this year of their $60 billion merger.
RELATED
Sheffield Responds to FTC: Ban from Exxon Board a ‘Dangerous Course’
It was not immediately clear if Hess would be allowed to take another position at Chevron. He recently joined the board of financial firm Goldman Sachs.
Neither Hess nor Chevron immediately replied to requests for comment. The FTC declined to comment.
Hess and Chevron shares each fell 1% in midday trading.
The expected go-ahead would leave Exxon's challenge to the Chevron-Hess deal as its final hurdle. Exxon and China's CNOOC Ltd. have filed an arbitration case that could block the deal, claiming the merger is a ploy to gain Hess's lucrative Guyana assets.
Hess owns 30% of Guyana's giant Stabroek offshore block, which has been the site of more than 30 oil and gas discoveries since 2015. Exxon, which is the operator of the block owns 45% and CNOOC owns 25%.
Bloomberg News earlier reported the FTC would block Hess from taking a board seat on the combined company.
In the Exxon merger, the FTC alleged that Sheffield had colluded with other U.S. oil firms and with the Organization of the Petroleum Exporting Countries "to keep production artificially low" and increase oil companies' profits.
The FTC had pointed to meetings that shale and OPEC officials held over several years, including a series of private dinners at a Houston energy conference.
Recommended Reading
Shell Raises Shareholder Distributions and LNG Sales Target, Trims Spending
2025-03-25 - Shell trimmed its annual investment budget to a $20 billion to $22 billion range through 2028 after spending $21.1 billion last year.
Kissler: Gas Producers Should Still Hedge on Price
2025-03-27 - Recent price jumps and rising demand don’t negate the need to protect against future drops.
Argent LNG, Baker Hughes Sign Agreement for Louisiana Project
2025-02-03 - Baker Hughes will provide infrastructure for Argent LNG’s 24 mtpa Louisiana project, which is slated to start construction in 2026.
BP Cuts Renewable Investment, Boosts Oil and Gas in Strategy Shift
2025-02-26 - BP aims to grow oil and gas production to between 2.3 MMboe/d and 2.5 MMboe/d in 2030.
Venture Global LNG Pares IPO Hopes by 15% to $2.2B
2025-01-22 - LNG exporter Venture Global nearly halved the price per share, while increasing the number of shares it expects to offer.
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.