Houston — The arbitration proceedings in Exxon Mobil’s contractual dispute over Chevron’s planned acquisition of Hess concluded this week and a decision is expected in about two to three months, Exxon senior vice president Neil Chapman said on Thursday.
While speaking at a Bernstein conference, Chapman said he was confident that a three-member arbitration panel would rule in Exxon’s favor and determine it had a right-of-first-refusal to purchase Hess’ stake in a Guyana oil joint venture operated by Exxon.
Chevron struck a $53 billion deal to buy Hess in October 2023, with the prize asset being Hess’ 30% stake in the prolific Stabroek block off the coast of Guyana.
But the deal, key to Chevron CEO Mike Wirth’s strategy to turn around the company’s lagging performance, was delayed when Exxon and CNOOC, the other minority partner in the block, filed arbitration claims last year asserting pre-emptive rights to Hess’ interest in the project.
The fate of Chevron’s acquisition now hangs in the balance as the arbitration panel deliberates.
“We remain confident that the arbitration will confirm the Stabroek right of first refusal does not apply to the merger,” a Hess spokesperson said. Chevron did not immediately respond to request for comment.
Chapman said there would be no change if Chevron wins and gains entry into the Stabroek block, even as he expressed confidence that Exxon would prevail in the arbitration proceedings.
“But if the judges decide that’s not the case, then we get a new partner. Business carries on as normal,” he said.
Reporting by Sheila Dang in Houston; Editing by Tomasz Janowski, Franklin Paul and Mark Porter – Reuters
