Chevron has officially completed its $53 billion acquisition of Hess Corporation following a critical ruling from the International Chamber of Commerce (ICC) in Paris, marking a major step forward in the company’s expansion strategy.
The decision clears Chevron’s path to one of the decade’s largest oil discoveries—the Stabroek Block, a massive offshore oil field located off the coast of Guyana. The arbitration panel dismissed challenges raised by Exxon Mobil, which had disputed Chevron’s right to purchase Hess due to existing agreements among the joint venture partners operating in Guyana.
While Exxon expressed disagreement with the panel’s interpretation, it acknowledged and accepted the outcome of the arbitration process. In a statement, Exxon reiterated its commitment to collaboration and said it welcomes Chevron to the venture.
Guyana, home to roughly 791,000 people, has rapidly transformed into a global oil hotspot. It is now projected to become the fourth-largest offshore oil producer, ahead of energy powerhouses like Qatar, Mexico, and Norway.
The Stabroek Block has attracted intense interest from energy giants including Exxon, China’s CNOOC, and Hess, due to its vast and lucrative reserves. Chevron now becomes a major player in the region as a result of this acquisition.
Former Hess CEO John Hess praised the merger, stating, “We are proud of everyone at Hess for building one of the industry’s best growth portfolios, including Guyana and the Bakken shale. This combination with Chevron forms a top-tier energy company with a powerful future.”
Chevron also announced that the U.S. Federal Trade Commission had lifted its earlier restrictions, allowing John Hess to potentially join Chevron’s board of directors, pending board approval.
The Chevron-Hess deal was originally unveiled in October 2023, shortly after Exxon announced its $60 billion acquisition of Pioneer Natural Resources. Chevron emphasized at the time that the addition of Hess would significantly strengthen its holdings in both the Guyana offshore basin and the Bakken shale fields in North Dakota.
Exxon responded to Friday’s decision by reiterating its belief in the value it has helped build in Guyana, stating that it had a responsibility to its shareholders to evaluate its contractual rights. However, it expressed optimism about future collaboration in the region.
Following the announcement, Chevron’s stock rose by over 3%, Hess shares jumped more than 7%, and Exxon’s stock also saw modest gains.
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