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Chevron prevails in mediation over Exxon in Guyana oil assets, CNBC reports

ReutersJul 18, 2025 10:11 AM

By Sheila Dang

- Chevron CVX.N will proceed with its $53 billion acquisition of Hess HES.N, CNBC reported on Friday, after it prevailed in a landmark legal battle against larger rival Exxon Mobil XOM.N to gain access to the largest oil discovery in decades.

It is vindication for CEO Mike Wirth's strategy and a critical win since Hess' most attractive asset is its stake in the prolific Stabroek Block off the coast of Guyana that holds more than 11 billion barrels of oil, a source of growth as Chevron works to turn around its lagging performance.

Exxon, which operates the Stabroek Block with a 45% interest, and China's CNOOC, which holds 25%, filed arbitration claims against their partner Hess last year, arguing they had a contractual right-of-first-refusal to buy Hess' 30% interest in the joint venture. Chevron and Hess claimed the pre-emptive right did not apply to the sale of the entire Hess company.

The claims from Exxon and CNOOC kicked off a legal battle that delayed Chevron's acquisition by at least a year and captured the attention of the global oil industry, shareholders and attorneys who craft joint operating agreements that govern oil partnerships around the world.

The dispute likely centered on the interpretation of just several words in the confidential joint operating agreement between Exxon, Hess and CNOOC, experts told Reuters.

During a conference in May, an Exxon executive said the company worked with Chevron around the world and would do so in Guyana if the arbitrators ruled against Exxon's claim.

The fight illustrates the value of the Stabroek Block, which drove profits for the Exxon-led consortium that controls all of its oil output, transformed Guyana into one of the world's fastest growing economies and still has potential for further oil discoveries.

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