Exxon expects victory in dispute over Chevron-Hess deal, exec says

Exxon Mobil (NYSE:XOM) is confident it will prevail in its contractual dispute over Chevron’s (CVX) planned acquisition of Hess (HES), Exxon Senior VP Neil Chapman said Thursday at a Bernstein conference in New York, Reuters reported.

Arbitration proceedings concluded this week and a decision is expected in 2-3 months, and Chapman said he is confident the three-member panel will rule in Exxon’s (NYSE:XOM) favor and determine it has a right-of-first-refusal to purchase Hess’ (HES) stake in the prolific Guyana oil joint venture operated by Exxon.

But there will be no change if Chevron (CVX) wins in arbitration and gains entry into the Stabroek block, Chapman said, even while expressing confidence that Exxon (NYSE:XOM) will prevail.

“If the judges decide that’s not the case, then we get a new partner,” Chapman said, according to Reuters. “Business carries on as normal.”

Chevron (CVX) agreed to buy Hess (HES) in a $53B deal in October 2023 – with Hess’ 30% stake in the Stabroek block off the coast of Guyana the prize asset – but the deal was delayed when Exxon (XOM) filed arbitration claims last year asserting pre-emptive rights to Hess’ interest in the project.