HOUSTON (AP) 鈥 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. Exxon had challenged Chevron鈥檚 bid for Hess, one of three companies with access to the massive Stabroek Block oil field off the coast of Guyana.聽
鈥淲e disagree with the ICC panel鈥檚 interpretation but respect the arbitration and dispute resolution process,鈥 Exxon Mobil said in a statement on Friday.聽
is a country of 791,000 people that is poised to become the world鈥檚 fourth-largest offshore oil producer, placing it ahead of Qatar, the United States, Mexico and Norway. It in recent years.聽
Oil giants Exxon Mobil, China鈥檚 CNOOC, and Hess squared off in a heated competition for highly lucrative oil fields in northern South America.
With Chevron getting the green light on Friday, it is now one of the major players in the Stabroek.聽
鈥淲e are proud of everyone at Hess for building one of the industry鈥檚 best growth portfolios including Guyana, the world鈥檚 largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer,鈥 former Hess CEO John Hess said in a statement. 鈥淭he strategic combination of Chevron and Hess creates a premier energy company positioned for the future.鈥
Chevron also said that on Thursday the Federal Trade Commission lifted its earlier restriction, clearing the way for John Hess to join its board of directors, subject to board approval.
Chevron announced its deal for Hess in October 2023, after Exxon Mobil 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 in North Dakota.聽
鈥淕iven the significant value we鈥檝e created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become,鈥 Exxon Mobil said Friday. 鈥淲e welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved.鈥澛
Chevron's stock rose more than 3% before the market open, while shares of Hess surged more than 7%. Exxon's stock climbed slightly.
