Chevron has scored a critical ruling in Paris that has given it the go-ahead for a $53 billion acquisition of Hess and access to one of the biggest oil finds of the decade.
Chevron said Friday that it completed its acquisition of Hess shortly after the ruling from the International Chamber of Commerce in Paris. ExxonMobil had challenged Chevron’s bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana.
“We disagree with the ICC panel’s interpretation but respect the arbitration and dispute resolution process,” ExxonMobil said in a statement Friday.
Guyana, a nation of 791,000, is poised to become the world’s fourth-largest offshore oil producer, placing it ahead of Qatar, the U.S., Mexico and Norway. It has become a major producer in recent years.
Oil giants ExxonMobil, China’s CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America.
“We are proud of everyone at Hess for building one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer,” former Hess CEO John Hess said in a statement. “The strategic combination of Chevron and Hess creates a premier energy company positioned for the future.”
Chevron announced its deal for Hess in October 2023, less than two weeks after ExxonMobil said that it would acquire Pioneer Natural Resources for about $60 billion. Chevron said at the time that the acquisition of Hess would add a major oil field in Guyana as well as shale properties in the Bakken Formation in North Dakota.
