ExxonMobil's (XOM) CEO Darren Woods confirmed that Chevron (CVX, Financial) has won its arbitration case against ExxonMobil regarding Hess Corporation's offshore oil assets in Guyana. The International Chamber of Commerce's ruling in favor of Chevron removes obstacles for its $53 billion acquisition of Hess, boosting Chevron's stock price.
ExxonMobil acknowledged the ruling, although it disagrees with the arbitration panel's interpretation, and respects the dispute resolution process. The arbitration outcome clears uncertainty surrounding Chevron's acquisition of Hess, which had previously affected Chevron's stock performance. If ExxonMobil had won, the acquisition would have been jeopardized.
ExxonMobil and China National Offshore Oil Corporation had sought arbitration, claiming preemptive rights to Hess's oil assets in Guyana's Stabroek Block. The current equity structure of the block includes Hess with a 30% stake, ExxonMobil as the operator with 45%, and CNOOC holding 25%.
ExxonMobil expressed its welcome to Chevron joining the partnership and looks forward to creating industry-leading performance and value for all stakeholders in the Guyana project.
