Chevron wins Guyana Basin dispute, officially closes $53 billion Hess deal
The oil giant prevailed over rival Exxon for access to one of the world’s fastest-growing offshore oil regions.
Chevron has officially closed its $53 billion acquisition of Hess after winning a closely watched arbitration case over offshore drilling rights in Guyana.
The dispute centered on whether Exxon and China’s CNOOC had a right of first refusal on Hess’ 30% stake in the Stabroek Block, one of the world’s most valuable high-output oil fields.
On Friday, Chevron CEO Mike Wirth told CNBC that the International Chamber of Commerce sided with Chevron in a ruling, ending months of uncertainty that threatened to derail the oil giant’s deal to buy Hess.
With the decision, Chevron has secured a foothold in the booming Guyana Basin, while Exxon will retain its 45% stake and leadership of the project. The deal’s closure paves the way for more integration and will include job cuts. Chevron has already been trimming staff, but Wirth said he expects “some” additional headcount cuts tied to the Chevron-Hess deal.
Chevron shares were down over 1% Friday afternoon, while Exxon was down over 3%.
