US EditionHow One Clause Sparked Exxon-Chevron Feud that Turned Personal
GUYANA, JUL 20 – Chevron's $53 billion acquisition of Hess, including a 30% stake in Guyana's Stabroek block with over 11 billion barrels of recoverable oil, was finalized after winning arbitration against ExxonMobil.
- On Friday, Chevron completed its $53 billion acquisition of Hess after an ICC tribunal in Paris ruled in its favor, ending a drawn-out dispute over Hess’s stake in Guyana’s Stabroek block.
- A confidential clause signed more than a decade ago contained a right-of-first-refusal clause, and on March 6, 2024, Exxon Senior Vice President Neil Chapman filed for arbitration at a Morgan Stanley conference in New York, triggering the scope of dispute.
- During arbitration, Chevron purchased $2.2B in Hess shares and issued $5.5B in long-term debt, while Michael Ashley Schulman said roughly 180,000 barrels per day of Hess oil, worth $6–7B in sales, were kept back.
- The ICC panel ruled that first-refusal rights did not apply to corporate mergers, allowing Chevron to proceed, while ExxonMobil said it respected the process but disagreed with the interpretation.
- Chevron expects $9 billion in additional free cash flow next year from recent projects in Kazakhstan, the Gulf of America, and the Permian, and the acquisition is projected to boost production and free cash flow growth over the next five years.
15 Articles
15 Articles
How one clause sparked Exxon-Chevron feud that turned personal
The 20-month feud between the Western Hemisphere’s two most powerful oil companies over the biggest offshore discovery in a generation hinged on a single clause of a contract few people have ever seen. The passage in a confidential agreement signed more than a decade ago that governs how producers work together in Guyana’s booming oil field was the basis for Exxon Mobil Corp.’s arbitration case that threatened to undo Chevron Corp.’s $53 billion…
Chevron wins Exxon case but loses time, oil and billions – Oil & Gas 360
(BOE Report)– ExxonMobil has lost its arbitration challenge to block Chevron’s $55 billion Hess acquisition deal, but the top U.S. oil producer managed to delay the tie-up by over a year, costing its rival billions in lost Guyana oil revenue and slowing integration. Chevron’s deal, first announced in October 2023, closed on Friday after a drawn-out dispute over Hess’s 30% stake in Guyana’s Stabroek block, the most attractive asset in its portfol
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