Arbitrators in Exxon, Hess Dispute Over Chevron Deal Have Reached a Decision, Sources Say

The Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is now reviewing the decision before it is released to the parties.

It is unclear what the arbitrators decided or when the decision will be released.

“We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves,” an Exxon spokesperson said in a statement.

Hess, Chevron and the ICC did not immediately respond to requests for comment.

Chevron struck its deal to acquire smaller U.S. oil producer Hess in October 2023, with the prize being the latter’s 30% stake in the prolific Stabroek block in Guyana that is operated by Exxon with a 45% interest.

The closing of the acquisition has been delayed due to arbitration claims from Exxon and CNOOC, the other minority partner in the joint venture, who argue that they have a contractual right of first refusal to purchase Hess’ stake in the Stabroek block. CNOOC did not immediately respond to request for comment.

Chevron and Hess argue the clause does not apply to the sale of the whole company. If they lose the arbitration or are unable to agree on an acceptable resolution with Exxon and CNOOC, the acquisition would fail, according to the terms of the deal.

The stakes are high for Chevron. Acquiring Hess is key to Chevron CEO Mike Wirth’s strategy to improve the company’s performance. Gaining access to the Stabroek block would provide a valuable addition to Chevron’s declining oil and gas reserves.

(Reporting by Sheila Dang in Houston; Editing by Sandra Maler and Sonali Paul)