Chevron-Hess merger is a go
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios
Chevron's blockbuster, $53 billion acquisition of Hess Corp. is complete after a dispute panel ruled against Exxon in arbitration over Hess assets in a massive oilfield off Guyana's coast.
Why it matters: The International Chamber of Commerce panel's decision enables a pivotal deal for Chevron that had been held up for over a year in a clash with rival titan Exxon.
The latest: Chevron said Friday that it had formally completed the acquisition, which had previously been blessed by U.S. regulators.
- Its stock is up over 4% in pre-market trading. The deal brings Chevron new oil and gas assets not only in Guyana, but also the Bakken shale, Gulf of America (formerly the Gulf of Mexico), Southeast Asia and beyond.
- "The combination enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders," Chevron CEO Mike Wirth said in a statement.
Driving the news: Exxon had asserted a contractual right of first refusal for Hess' stake in Guyana, among the most important oil finds in recent decades and one already producing large volumes.
- The project is operated by Exxon, which has the largest stake. China's CNOOC, which also has a major stake, had joined Exxon in disputing Chevron's acquisition.
- Exxon is producing 650,000 barrels per day in Guyana and is eyeing 1.7 million barrels per day by 2030.
State of play: "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement.
- Exxon said it had a "clear duty to our investors to consider our preemption rights to protect the value" it created through "innovation and hard work."
The bottom line: The Guyanese assets are a foundational piece of Chevron's acquisition first announced in October 2023, one of several deals that are reshaping the industry.
- The plan came on the heels of Exxon announcing its $60 billion purchase of shale giant Pioneer Natural Resources.
