Chevron energy company signs deal to buy Hess for $53 billion

The American energy company Chevron has completed the acquisition of the oil and gas company Hess for $ 53 billion, thereby gaining access to one of the largest deposits in recent decades. This was announced on Friday, July 18, according to the Financial Times.

It is clarified that the competing American oil and gas company ExxonMobil failed in an attempt to block the deal during the arbitration proceedings.

"Exxon, which jointly manages the Stabroek project in Guyana with Hess, has filed a lawsuit with the International Chamber of Commerce, claiming that it has the right to pre—empt a 30% stake in Hess," the article explains.

However, this share is the main value of Hess, which is why Chevron CEO Mike Wirth has been seeking a takeover of the company since October 2023, the article emphasizes.

Chevron's oil and gas reserves have dropped to a minimum over the past ten years, while the reserves of the acquired field amount to more than 11 billion barrels of oil. Also, as part of the deal, Chevron receives deposits in the Gulf of Mexico and the American Bakken shale oil basin, according to the material.

In March 2024, ExxonMobil filed a lawsuit with the International Chamber of Commerce to defend the right of pre-emptive purchase of Hess's stake in the Stabroek project in Guyana.

Chevron expected that Hess's share in the project would pass to it as a result of the purchase of the company, and Exxon believed that the provision on the priority right to buy out the share was applicable to this transaction.

Following the litigation, ExxonMobil said it disagreed with the decision, but "respects the arbitration and dispute resolution process."

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