Hess Board Recommends Shareholders Vote in Favor of Chevron Merger -Filing

Hess Corp on Thursday said in a securities filing that its board unanimously recommended shareholders vote in favor of the company’s sale to Chevron Corp, and that Exxon Mobil had initially supported the deal.

The $53 billion deal’s closing has been delayed by a second request for information by the U.S. Federal Trade Commission and by contract arbitration filings by Hess’s partners in Guyana – Exxon Mobil Corp and CNOOC Ltd – seeking to assert a right of first refusal on any sale of Hess’s Guyana assets.

The merger is “fair to and in the best interests of the Hess stockholders,” Hess’s U.S. Securities and Exchange filing said.

Shortly after the proposed deal was announced and before the arbitration cases were filed, Exxon issued an statement indicating its support for the merger, Hess noted in its filing.

“We look forward to continuing our successful operations in the Stabroek block with Chevron, pending the deal closing,” Exxon wrote in reference to the deal, Hess said.

Hess also said on Thursday an arbitration case filed by China’s CNOOC also asserting a right of first refusal was consolidated on March 26 with its own and Exxon’s arbitration cases.