Hess Corp. confidently anticipates winning the arbitration with Exxon over a key oil project relevant to Chevron’s $53 billion merger. CEO John Hess deems Exxon’s claims as baseless. The arbitration is set to conclude by September, aiming to finalize the merger shortly thereafter.
Hess Corp. is optimistic about winning the arbitration dispute raised by Exxon Mobil Corp. concerning a significant oil project essential to Chevron Corp.’s planned $53 billion acquisition. In a recent statement at a Goldman Sachs Group Inc. conference, Chief Executive Officer John Hess asserted that Exxon’s claim to a right-of-first-refusal regarding Hess’s 30% stake in Guyana’s Stabroek block is “baseless” and “without merit.” Hess emphasized that the legal documentation unambiguously indicates no right of refusal exists under English law.
The arbitration, conducted under the auspices of the International Chamber of Commerce, is expected to conclude in the third quarter of this year, marking nearly two years since Hess agreed to Chevron’s takeover bid. Importantly, Exxon executives also professed confidence in their position during a recent investor meeting. CEO Darren Woods stated that the understanding of the documents at issue was clear, as they authored them themselves.
As the arbitration progresses, Hess reported that both companies have submitted “memorials,” which contain evidence and pertinent statements to support their respective cases. Hess noted that the arbitrators have clearly indicated a forthcoming decision by September, paving the way for the finalization of the merger. Additionally, in dialogue with Goldman analyst Neil Mehta, Hess suggested that the incoming Trump administration should contemplate refilling the Strategic Petroleum Reserve, a measure taken by President Biden to mitigate fuel prices following the disruptions caused by Russia’s invasion of Ukraine.
In summary, Hess Corp. is confident in its legal standing against Exxon Mobil in the arbitration that concerns a pivotal oil project tied to Chevron’s substantial merger. With expected arbitration resolution by September and continued assertions of meritless claims from Hess, the path appears favorable for the merger’s progression. The dialogue also touches on broader implications for energy policy with recommendations on the Strategic Petroleum Reserve.
Original Source: worldoil.com
