Chevron Closes $53B Purchase of Hess After Arbiter Ends Exxon Effort to Block It

Chevron (CVX) can complete its $53 billion purchase of Hess (HES) after an international arbitrator ruled in favor of Chevron in a dispute with Exxon Mobil (XOM) related to Chevron’s planned acquisition. Following the decision, Chevron said it had closed the deal.

Exxon Mobil and partner China National Offshore Oil Corporation (CNOOC) had raised the challenge with the Paris-based International Chamber of Commerce (ICC) over the acquisition, which gives Chevron access to Hess’s oil-rich fields in Guyana. Exxon Mobil and CNOOC argued they had the right of first refusal for the Hess deal because of their production interests in that country.

However, the ICC sided with Chevron, leading the company to announce that it had met “all necessary closing conditions, including a favorable arbitration outcome regarding Hess’ offshore Guyana asset,” to complete the Hess purchase. Chevron’s deal for Hess had been in limbo since it was struck in October 2023.

Chevron explained that the Hess acquisition “adds world class assets, including Guyana and U.S. Bakken, to Chevron’s diversified global portfolio” that now boasts “a 30% position in the Guyana Stabroek Block, which has more than 11 billion barrels of oil equivalent discovered recoverable resource.”

Exxon Mobil responded to the ICC ruling by saying it disagreed, noting that “we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become.” The company added that it welcomes Chevron to the venture and looks forward “to continued industry-leading performance and value creation in Guyana for all parties involved.”

Hess did not respond to Investopedia’s request for comment in time for publication.

The companies’ stock were all relatively unchanged after the news. Shares of all three energy giants are higher year-to-date.