Arbitrators in Exxon-Hess dispute over Chevron deal have reached decision – Reuters

The arbitrators in the legal dispute between Exxon Mobil (NYSE:XOM) and Hess (HES) have reached a decision that will determine whether Chevron (NYSE:CVX) can move forward with its planned $53B merger with Hess, Reuters reported this week.

The Paris-based International Chamber of Commerce overseeing the case is reviewing the decision before it is released to the parties, although the arbitrators’ ruling and the time of the release are not yet known, according to the report.

“We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves,” Exxon (NYSE:XOM) said in a statement, while Hess (HES) and Chevron (NYSE:CVX) have not commented.

Chevron’s (CVX) deal to buy Hess (HES) was motivated in large part by Hess’ (HES) 30% stake in the prolific Stabroek offshore block in Guyana that is operated by Exxon (XOM) with a 45% interest, but Exxon and Chinese partner CNOOC (OTCPK:CEOHF) argued they have a contractual right of first refusal to purchase Hess’ stake.

If Chevron (CVX) and Hess (HES) lose the arbitration or are unable to agree on an acceptable resolution with Exxon (XOM) and CNOOC (OTCPK:CEOHF), the acquisition would fail, according to the terms of the deal.