Arbitrators in Exxon, Hess dispute over Chevron deal have reached a decision, sources say

By Sheila Dang

The referees in a legal dispute between Houston (Reuters) -exxon mobile and Hess made a decision on a large oil field project in Guyana, according to two sources familiar with the issue.

The decision will determine whether Chevron will progress with the purchase of Hess with a planned 53 billion dollars.

The Paris -based Chamber of International Commerce, which controls the arbitration case, is now reviewing the decision before it is announced to the parties.

It is unclear what the referees decide or when the decision will be published.

“We rely on our position, and we appreciate the arbitration panel that gives this issue in question.” He said.

HESS, Chevron and ICC did not respond immediately to comments.

In October 2023, Chevron made the purchase agreement of the smaller US oil manufacturer Hess, and the award was a 30% stake in the productive Stabroek block, which was operated by the Exxon in Guyana at a 45% interest.

EXXON and other minority partner in the joint venture, CNOOC’s arbitration allegations, was postponed because of the arbitration allegations claiming that they had the right to first reject the Hess’s shares in the Stabroek block. CNOOC did not respond immediately to the request for comment.

Chevron and Hess argue that the article is not valid for the sale of the entire company. If they lose arbitration or do not agree on an acceptable decision with Exxon and CNOOC, the purchase will fail according to the conditions of the agreement.

The risk is high for Chevron. Buying HESS is the key to Chevron CEO Mike Wirth’s strategy to improve the company’s performance. Access to the Stabroek block will make a valuable contribution to Chevron’s decreasing oil and gas reserves.

(Reporting by Sheila Dang in Houston;