Exxon is not trying to acquire Hess in dispute with Chevron over Guyana oil assets, CEO says

Energy
Tuesday, March 19th, 2024 8:38 pm EDT

Exxon CEO Darren Woods clarified during the CERAWeek by S&P Global energy conference that Exxon is not pursuing an acquisition of Hess amidst the ongoing conflict with Chevron over valuable oil assets in Guyana. Woods emphasized that acquiring Hess was not among Exxon’s goals in the dispute and asserted that if it were, Exxon would not have delayed action until after Chevron’s announcement. Chevron’s $53 billion deal to acquire Hess primarily aims to secure a position in Guyana’s significant oil resources, particularly in the Stabroek oil block, estimated to hold 11 billion barrels of oil and gas. The conflict stems from Exxon’s claim to a right of first refusal over Hess’ Guyana assets under a joint operating agreement governing the Stabroek block, where Exxon holds a 45% stake and Hess, 30%. The dispute escalated with Exxon seeking arbitration at the International Chamber of Commerce, challenging Chevron’s position. Woods emphasized Exxon’s intent to ensure the agreement’s terms are upheld, indicating a focus on evaluating Chevron’s valuation of Hess’ Guyana assets to make decisions beneficial to the company and shareholders. He reiterated Exxon’s familiarity with the joint operating agreement, asserting the company’s commitment to protecting its interests in the Stabroek block.

For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/18/exxon-is-not-trying-to-acquire-hess-in-dispute-with-chevron-over-guyana-oil-assets-ceo-says.html