Hess-Chevron Deal May Be Suspended Until 2025
A transaction arbitration panel that could have blocked or green-lit the $53 billion sale of Hess to Chevron has not made a decision three months after ExxonMobil filed a claim for pre-emptive rights to buy Hess’ assets in Guyana as a co-owner of the project.
The third and final arbitrator in the Exxon-Hess proceedings has never been appointed. The jury is still out on whether Exxon has the first right to buy Hess’ 30 percent stake in the Stabroek block or not. This means that the Hess merger with the larger Chevron appears to be delayed until next year, as Hess had previously admitted.
Chevron initially hoped to complete the Hess deal by mid-2024. Hess shareholders last month backed a potential sale with 51% of the voting rights.
It is expected that after the deal, Chevron will transfer a 30% stake in Hess in the Guyana Oil Consortium (JOA), which has already produced more than 11 billion barrels. oil and continues to develop the huge Stabroek site with an area of 26.8 thousand square meters. km. Other consortium participants – Exxon (45%) and Chinese CNOOC (25%) – believe that they have the right, as co-owners, to be the first to buy out this share. Chevron responds that Hess is not selling its share, but is selling itself – what kind of pre-emptive rights are we talking about? Exxon and CNOOC filed corresponding claims in International Arbitration in March.
