By Sheila Dang
HOUSTON (Reuters) – 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, said Exxon senior vice president Neil Chapman 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 that is 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 turnaround 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.
Chevron did not immediately respond to request for comment, while Hess declined comment. The companies have argued that the right-of-first refusal is not applicable to their deal.
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 and Franklin Paul)
