ExxonMobil Chief Executive Officer Darren Woods has expressed disappointment with the recent arbitration ruling on Chevron’s acquisition of Hess Corporation but emphasized that the decision does not alter its operations in Guyana.
“While disappointed, we respect the process and the ruling,” Woods said on Exxon’s Q2 earnings call on Friday. “With respect to the continuing development of Guyana, the arbitrator’s decision changes nothing for us, and we welcome Chevron to the Stabroek Block.”
The ruling by the International Chamber of Commerce ended a prolonged legal battle, rejecting claims by Exxon and CNOOC that they held pre-emptive rights to Hess’s 30% stake in the Stabroek Block.
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At the core of the dispute was the interpretation of a pre-emption clause in the joint operating agreement governing the prolific offshore oil field, one of the most significant oil discoveries in the past decade.
Chevron finalized its US$53 billion acquisition of Hess in July, following a favorable decision, gaining access to high-return assets in Guyana, the U.S. Bakken, and the Gulf of Mexico. The company said the deal delivers “one of the most advantaged and differentiated portfolios in the industry”.
“As we move forward, I hope our investors take comfort in the lengths we will go to in protecting the value our employees create for the company and our shareholders,” Woods added.
