Tussle over Guyana stake could push Hess-Chevron merger to 2025

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Hess warned in a filing to the U.S. Securities and Exchange Commission (SEC) that its acquisition by Chevron could be pushed to 2025, Reuters reported. 

Hess and Chevron had intended to close the sale in the middle of 2024.

The delay is due to arbitration proceedings filed at the International Chamber of Commerce by ExxonMobil and CNOOC, concerning a right they believe they have to be offered Hess’ 30% stake in the Stabroek Block before the company’s sale to Chevron. Exxon and CNOOC aim to tap the right of first refusal (ROFR) clause in their joint operating agreement (JOA) with Hess for the Stabroek Block. However, Chevron and Hess believe the clause does not apply to the acquisition deal. 

The acquisition had a total enterprise value of US$60 billion, including debt, as of Chevron’s October 2023 announcement. It would diversify Chevron’s portfolio, including Hess’ 30% stake in the Stabroek Block. Stabroek is currently producing well over 620,000 barrels per day of oil from three projects, according to recent government data. Three more will be added in the lead-up to 2027. Exxon, the operator, is on track to produce 1.2 million barrels per day (b/d) by then. Exxon recently made another discovery at the Bluefin-1 well. The government of Guyana also approved a sixth oil project. 


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