Chevron is set to move forward with its $53 billion acquisition of Hess Corporation after prevailing in a legal dispute with ExxonMobil over rights to a lucrative oil project in Guyana.
The ruling, delivered by an international arbitration panel, rejected Exxon’s claim that it held a right of first refusal over Hess’s 30% stake in the Stabroek Block—an offshore Guyanese oil field regarded as one of the most significant global discoveries in recent years.
Chevron’s victory clears a major hurdle in one of the oil industry’s largest recent deals and cements its position in Guyana’s rapidly expanding energy sector. The Stabroek Block, operated by Exxon with partners Hess and CNOOC, is estimated to hold more than 11 billion barrels of oil equivalent.
In a statement, Chevron welcomed the ruling, calling it “a positive step toward completing the transaction and unlocking long-term value for shareholders.” The company now expects the deal to close in the coming months, pending remaining regulatory approvals.
Exxon, while expressing disappointment with the decision, reaffirmed its commitment to continued operations in Guyana alongside its joint venture partners.
Analysts note that the outcome significantly enhances Chevron’s growth prospects in offshore oil production and deepens its exposure to low-cost, high-margin assets at a time of increasing global energy demand.
The ruling also underscores the growing strategic importance of Guyana in the global energy landscape, as major oil firms compete for access to its prolific reserves.
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