By Ayomide Otitoju
Chevron has officially closed its $55 billion acquisition of Hess Corporation, securing access to the prized Stabroek Block offshore Guyana — one of the world’s largest recent oil discoveries — after prevailing in a high-stakes legal battle with ExxonMobil.
Exxon and China’s CNOOC, Hess’s partners in Guyana, had sought to block the sale through arbitration, citing preemptive purchase rights. But an international tribunal ruled in Chevron’s favor.
“This merger brings together two great American companies,” Chevron CEO Mike Wirth told Reuters. “The outcome is simple and straightforward, as we expected.”
The deal grants Chevron a share in over 11 billion barrels of oil in Guyana, where Hess’s earnings surged to $3.1 billion last year. Chevron has already begun integrating systems and employees.
The arbitration ruling, though final and without appeal, has prompted Exxon to review future contract language to strengthen its preemption rights.
