Chevron, Hess reach “significant” milestone in ExxonMobil arbitration over assets offshore Guyana

July 03, 2024

(WO) – According to Reuters, a three-person arbitration panel has been finalized to address ExxonMobil's claim against Chevron's $53 billion purchase of Hess Corp over oil-rich assets offshore Guyana. This marks a significant step in resolving the uncertainty surrounding the merger, which Chevron and Hess hoped to complete in early 2024.

ExxonMobil filed the claim with the International Chamber of Commerce (ICC) in March, claiming a right of first refusal over Hess's assets offshore Guyana, where Exxon leads oil production with Hess and China's CNOOC as partners.

Exxon contends that the merger aims to bypass its rights, while Chevron and Hess argue otherwise, citing the merger's structure and the Guyana partnership agreement's terms.

The arbitration panel's formation involves each party appointing one arbitrator, who then jointly select the third. Exxon CEO Darren Woods expects the dispute to extend into 2025.

This story was originally reported by Reuters.

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