Hess Corporation Asserts Confidence in Winning Exxon Mobil Arbitration Linked to Chevron Merger
Hess Corporation confidently asserts its case against Exxon Mobil in arbitration regarding a significant oil project essential for Chevron’s $53 billion acquisition. Hess deems Exxon’s claims ‘baseless’ and expects a decision by September, which is critical for moving forward with the merger.
Hess Corporation has expressed robust confidence in its arbitration case against Exxon Mobil Corporation regarding a significant oil project, which is pivotal to the potential $53 billion acquisition by Chevron Corporation. John Hess, the Chief Executive Officer, referred to Exxon’s assertion of a right-of-first-refusal concerning Hess’s 30% interest in Guyana’s Stabroek block as ‘baseless’ and ‘without merit.’
During a Goldman Sachs conference, Hess reiterated, ‘We think it’s very clear that the words on paper in English law that there’s no right of refusal to be exercised.’ He affirmed their optimism regarding the merger’s successful completion. The arbitration, adhering to International Chamber of Commerce regulations, is expected to yield a decision in the third quarter, nearly two years after Hess accepted Chevron’s acquisition proposal.
Exxon executives, including CEO Darren Woods, have also shown belief in their standing during a recent investor meeting, affirming that they drafted the relevant documents with a clear understanding of their intent. Hess noted that both companies have submitted substantial evidence to the arbitration panel, stating, ‘The three arbitrators that are in-place now have been very clear’ that a ruling will be issued by September.
Additionally, Hess engaged in broader discussions, suggesting that the new Trump administration should contemplate replenishing the Strategic Petroleum Reserve, a measure undertaken by President Biden to mitigate fuel price surges following Russia’s invasion of Ukraine, which disrupted global oil markets.
In summary, Hess Corporation is optimistic about its arbitration victory against Exxon Mobil in relation to the Stabroek block, asserting that Exxon’s claims lack merit. With a decision anticipated by September, the outcome is crucial for Chevron’s acquisition of Hess. Furthermore, Hess highlighted the importance of the Strategic Petroleum Reserve in the current geopolitical climate.
Original Source: worldoil.com
