Hess Corp. is confident of winning arbitration with Exxon Mobil Corp. over a claim involving its stake in the crucial Stabroek block for a $53 billion Chevron takeover. CEO John Hess argues Exxon’s claims are unfounded and expects a ruling by September. Both parties seek to finalize Chevron’s acquisition shortly thereafter.
Hess Corp. has expressed unwavering confidence in winning the ongoing arbitration brought forth by Exxon Mobil Corp. regarding a significant oil project crucial to Chevron Corp.’s proposed $53 billion acquisition. Chief Executive Officer John Hess characterized Exxon’s right-of-first-refusal claim concerning Hess’s 30% stake in the Guyana’s Stabroek block as “baseless” and “without merit.” He further asserted that the legal framework clearly indicates there is no right of refusal that can be exercised.
In remarks made during a Goldman Sachs Group Inc. conference, Hess indicated that he is optimistic about the merger’s success. The arbitration, conducted under International Chamber of Commerce rules, is set to yield a decision by the third quarter. If timely, this will mark almost two years since Hess accepted Chevron’s takeover offer.
Exxon executives mirrored Hess’s confidence during a recent investor meeting, with CEO Darren Woods asserting their understanding of the relevant documentation. Hess confirmed that both companies have exchanged necessary evidence and supporting statements, known as “memorials”. He further noted that the arbitrators overseeing the case are poised to deliver a ruling by September, allowing for the closure of the acquisition.
In addition, Hess discussed broader strategic considerations, suggesting that the new administration should contemplate refilling the Strategic Petroleum Reserve, which had been utilized by the Biden administration to mitigate fuel price surges following the geopolitical disruptions caused by Russia’s invasion of Ukraine.
In summary, Hess Corp. is confident in its position regarding the arbitration with Exxon Mobil, asserting that the claims made are unfounded. The outcome of this arbitration is pivotal for the success of Chevron Corp.’s intended acquisition. Both companies expect a decision by September, which will be critical for moving forward. Furthermore, Hess has proposed strategic considerations for national energy policy.
Original Source: worldoil.com
