Chevron Corp. has completed its $53 billion acquisition of Hess Corp. following a decisive legal victory over Exxon Mobil in a high-stakes dispute concerning oil rights in Guyana. The ruling by the International Chamber of Commerce (ICC) cleared the final hurdle to one of the largest energy mergers in over a decade, granting Chevron a critical stake in the Stabroek Block-an offshore field estimated to hold more than 11 billion barrels of oil.
Chevron shares rose 3% in premarket trading Friday, while Hess stock jumped 7%. Exxon shares edged slightly lower.
The ICC panel rejected Exxon and China National Offshore Oil Corporation's claims of preemptive purchase rights over Hess's 30% stake in the Stabroek Block. Exxon, which leads the Guyana project with a 45% share, said in a statement, "We disagree with the ICC panel's interpretation but respect the arbitration and dispute resolution process."
The legal challenge had delayed Chevron's acquisition for over a year, stalling CEO Mike Wirth's plan to revitalize company performance through access to one of the world's fastest-growing oil provinces. "We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved," Exxon stated.
Exxon CEO Darren Woods told CNBC the issue was contractual, not personal. "This was never a Chevron thing. This was more about getting the contracts enforced the way they were intended," Woods said.
The arbitration centered on ambiguous language in a confidential joint operating agreement. Legal experts say the case has reverberated across the global energy industry, raising questions about how future joint ventures will structure preemption clauses.
Chevron had been preparing to close the deal within 48 hours of the ruling, and internal integration efforts between Chevron and Hess were already underway. Hess employees were informed they could request severance packages following the deal's finalization.
Chevron's adjusted earnings fell to $18.3 billion last year from $24.7 billion in 2023. In contrast, Hess's profits from its Guyana operations surged to $3.1 billion from $1.9 billion year-over-year, highlighting the value of the Stabroek Block.
"There is no appeals process at the International Chamber of Commerce," Exxon noted, confirming the finality of the decision.
