Chevron (CVX, Financial) has successfully acquired Hess for $53 billion following a pivotal ruling in Paris, granting it access to one of the largest oil fields in a decade. This acquisition positions Chevron as a major player in the lucrative Stabroek Block offshore Guyana, a region anticipated to become the world's fourth-largest offshore oil producer.
ExxonMobil, which had previously contested the acquisition, expressed disagreement with the arbitration panel's interpretation but acknowledged the arbitration process. Guyana has rapidly emerged as a significant oil producer, drawing intense competition among oil giants including ExxonMobil, CNOOC, and Hess.
Former Hess CEO John Hess praised the merger, highlighting the strategic combination of Hess's growth portfolio, including major oil discoveries in Guyana and shale assets in North Dakota's Bakken formation. The Federal Trade Commission has lifted restrictions, allowing John Hess to join Chevron's board, pending approval.
This acquisition follows ExxonMobil's recent announcement to acquire Pioneer Natural Resources for approximately $60 billion. Chevron's stock rose over 3%, Hess surged over 7%, and ExxonMobil experienced a slight increase.
