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topicnews · July 19, 2025

Chevron 53 billion dollar deal for Hess has gained access to an asset for the oil giant “once in the transmitters)

Chevron 53 billion dollar deal for Hess has gained access to an asset for the oil giant “once in the transmitters)


After almost two years, Chevron (CVX) will complete its 53 billion dollar deal for the purchase of rival Hess (HES) and access to one of the most important oil discoveries for decades.

On Friday, an arbitration proceedings in the International Chamber of Commerce in Paris decided that Chevron had the starting gear to close his all-stock purchase from Hess.

After the climb on Friday after the news, Chevron's shares rose by about 1.5%.

The deal, about which Chevron and Exxon have been competing since 2023, focuses on the 30% participation of Hess in the general Stobroek -Block block of oil fields off the north coast of Guyana. According to reports from Reuters, the piece is estimated at more than 11 billion barrels of oil.

This is a kind of asset of “unique lifetimes”, David Sweeney, co-manager of the global area for energy and resources from the international law firm Clifford Chance, told Yahoo Finance.

The project also has a role in transforming Guyana, historically one of the poorest countries in the west, into the second fastest economy in the world.

“This merger of two large American companies brings together the best in the industry,” said the chairman and CEO of Chevron, Mike Wirth, in a public statement by the company. “The combination improves and expands our growth profile to the next decade, which in our opinion will increase a higher long -term value for shareholders.” When Hess was reached after a comment, he referred to Chevron's public explanation.

Exxon, which currently operates the block and holds a share of 45%, has been working with Hess on exploration activities in Guyana since 2014 when Hess Shells (Shel) had bought the project on the project. Exxon also works with the China National Offshore Oil Corporation (CNOOC), which holds 25%.

“We do not agree to the interpretation of the ICC committee, but we respect the process of settling arbitration and dispute,” Exxon wrote in an explanation after the decision. “In view of the considerable value that we created in the development of the Guyana resource, we have the opinion of the investors of the view that we had a clear duty to take into account our investments in order to protect the value that we created through our innovation and hard work, at a time when nobody knew how successful this company would be.”

The Chevron logo will be displayed at a Chevron petrol station on October 28, 2022 in Los Angeles, California (Mario Tama/Getty Images) ยท Mario Tama about Getty Images

Shortly after Chevron had announced his plan to acquire Hess for 53 billion US dollars in October 2023, Exxon applied to block the deal, and, together with CNOOC, argued that his partnership agreement with Hess exxon gave a preventive right to achieve Chevron's offer for Hess '30% -D participation. This claim was the central debate under the ICC arbitration procedure.

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