ExxonMobil CEO sees Chevron arbitration over Hess purchase, assets offshore Guyana going into 2025

May 06, 2024

(Bloomberg) – Exxon Mobil Corp. Chief Executive Officer Darren Woods foresees arbitration with Chevron Corp. over a premier asset offshore Guyana stretching into 2025 due to the importance of the case to both companies.

ExxonMobil CEO Darren Woods

The companies still need to appoint a third arbitrator before they go into the discovery phase, Woods said during an interview on CNBC on Monday.

Chevron agreed to buy Hess for $53 billion in October, in large part to gain control of a 30% interest in Exxon’s offshore Guyana development. Exxon has asserted that it has a right of first refusal over the stake. Chevron disputes that the right is applicable to a corporate merger and wants to wrap up arbitration by the fourth quarter.

“This is around confirming our rights to this very valuable asset,” Woods said. “My view is it will go into 2025.”

Chevron CEO Mike Wirth said in a separate CNBC interview that he feels “good” about ultimately closing the Hess transaction.

Aside from the arbitration process, the deal requires approval from Hess shareholders at a vote later this month, as well as a successful Federal Trade Commission review.

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