Hess Corporation shows confidence in winning an arbitration with Exxon Mobil concerning its share in the Stabroek oil project, which is crucial for Chevron’s $53 billion merger. Executives from both firms have expressed their stances, and a decision is expected in September 2023.
Hess Corporation has expressed strong confidence in winning an arbitration dispute initiated by Exxon Mobil Corporation concerning a critical oil project tied to Chevron Corporation’s $53 billion acquisition bid. Chief Executive Officer John Hess described Exxon’s claim regarding a right-of-first-refusal for Hess’ 30% stake in Guyana’s Stabroek block as “baseless” and “without merit” during a Goldman Sachs conference.
Hess affirmed, “We think it’s very clear that the words on paper in English law that there’s no right or refusal to be exercised,” while expressing optimism about the merger’s successful progression. The arbitration, conducted under International Chamber of Commerce rules, is expected to conclude in the third quarter, nearly two years after Hess received Chevron’s takeover proposal.
Similarly, Exxon executives conveyed their assurance regarding their position at a recent investor meeting, with CEO Darren Woods stating, “We wrote these documents; we understood the intent of those documents.” According to Hess, both companies have submitted comprehensive evidence and statements for arbitration, indicating that the decision is set for September.
In a detailed discussion with Goldman analyst Neil Mehta, Hess urged the incoming Trump administration to consider replenishing the Strategic Petroleum Reserve, which was reduced to alleviate fuel prices during the ongoing global supply crisis, significantly exacerbated by Russia’s invasion of Ukraine.
In summary, Hess Corporation is poised to challenge Exxon Mobil’s arbitration claims regarding its stake in the Stabroek block, with high confidence in a favorable outcome. Both companies have prepared substantial evidence for the arbitration process, which will conclude in September, potentially clearing the path for Chevron’s merger. Furthermore, Hess emphasized the importance of strategic fuel reserves amid ongoing market volatility.
Original Source: worldoil.com
