1.Arbitration Decision – On Friday 18 July 2025, in a long-anticipated decision, the International Chamber of Commerce (ICC) sided with Chevron and Hess in their claim that Hess’ 30% stake in Stabroek was not subject to a right of first refusal that ExxonMobil and CNOOC International claimed they could exercise. https://www.upstreamonline.com/finance/chevron-ready-to-move-on-past-the-soap-opera-after-guyana-win-over-exxonmobil/2-1-1848157 In the dispute, the International Chamber of Commerce ruled in favour of Chevron over ExxonMobil and Chinese national company CNOOC. ExxonMobil does not agree with the ICC opinion. It however accepted the ruling and welcomed Chevron into Guyana partnership. Chevron completed the Hess acquisition immediately. https://newsletters.aapg.org/chevron-wins-arbitration-against-exxonmobil
2. History of the Companies – ExxonMobil and Hess are two US companies and while reading the news I was wondered if this acquisition of Hess by Chevron did not breach the anti-trust legislation.
In 1879, Pacific Coast Oil Co was created in San Francisco, which was acquired in 1900 by Standard Oil Company (Socal). In 1930, Socal discovered oil in the Middle East and became a key supplier of crude oil for the Allies during WWII. After further expansion, Socal became Chevron then ChevronTexaco. In 2024, Chevron moved its headquarters to Houston, Texas. On 9 February 2024, Chevron disclosed a record production of 3.1 billion barrels of oil equivalent per day (boed) in 2023. ww.chevron.com
Hess was formed in 1919, then following mergers became Amarada Hess. Now Hess Corporation describes itself on it’s website as “Our company has an industry-leading position in a key U.S. shale play — the Bakken in North Dakota. Hess is also one of the largest producers in the deepwater Gulf of America and a key natural gas producer and supplier to Peninsular Malaysia and Thailand. The company is engaged in exploration and development activities offshore Guyana, participating in one of the industry’s largest oil discoveries in the past decade.” https://www.hess.com/company#top By the end of 2024, Hess Corporation production reached circa 500,000 boed. https://www.rigzone.com/news/hess_doubles_guyana_oil_output-30-jan-2025-179480-article/
3. Anti-Trust situation – On 17 July 2025, the Federal Trade Commission (FTC) lifted the last restrictions regarding the acquisition of Hess Corporation by Chevron, meaning that no anti-trust legislation were at stake. On 18 July 2025, Chevron completed the acquisition.
4. Guyana – As a consequence, the Stabroek Block in Guyana is now shared by ExxonMobil (45 percent, operator), Chevron (30 percent) and CNOOC (25 percent) as partners.
Interestingly, in the same timing ExxonMobil acquired Pioneer Natural Resources, which also received clearance from the FTC. https://corporate.exxonmobil.com/news/news-releases/2024/0503_exxonmobil-completes-acquisition-of-pioneer-natural-resources