A high-stakes arbitration hearing over Chevron’s proposed $53 billion acquisition of Hess Corporation is set to begin Monday in London. The hearing will focus on a prized 30% stake in Guyana’s Stabroek Block, according to a Reuters report.
The confidential proceedings, conducted under the International Chamber of Commerce (ICC), will determine whether ExxonMobil and CNOOC, Hess’ partners in Guyana, have the right of first refusal to purchase Hess’ stake in the Stabroek Block, home to over 11 billion barrels of oil equivalent. If Exxon and CNOOC prevail and the parties cannot reach an acceptable resolution, the acquisition would collapse under the terms of the agreement.
Hess “very confident” merger will go through | OilNOW
At the core of the dispute is whether the right of first refusal clause in the Stabroek Block joint operating agreement extends to the sale of Hess in its entirety, given that the deal would transfer Hess’ 30% stake in the block to Chevron. Hess and Chevron argue the clause is not triggered by the acquisition. Exxon and CNOOC contend that it is.
According to Reuters, each party will deliver opening statements on Monday. Witnesses and experts who have submitted written testimony will be cross-examined by the three-member tribunal and questioned directly by arbitrators. Hearings of this magnitude typically span five days, according to three of the attorneys, Reuters said.
Chevron reinforces confidence in Hess acquisition with purchase of shares | OilNOW
Once the hearing is formally closed, no additional arguments may be submitted without authorization. The panel must then reach a majority decision before submitting a draft to the ICC for review and approval.
The parties expect a resolution by the third quarter of 2025.
“This is relatively fast for an ICC arbitration, especially when considering the size of the dispute,” said William Kirtley, managing partner at Aceris Law, to Reuters. “It suggests that neither party is engaging in delaying tactics to increase the duration of the case.”
