Chevron сompletes $53 billion acquisition of Hess

Chevron, the American oil giant, has finalized its $53 billion acquisition of shale oil producer Hess, the company announced on Friday, according to Report.

The deal’s closure came after the International Chamber of Commerce in Paris dismissed claims by ExxonMobil, which had sought to block the transaction. Following the announcement, Chevron’s shares rose 3 percent in after-hours trading.

Chevron first disclosed its plans to acquire Hess in October 2023. The key hurdle was Hess’s 30 percent stake in the offshore Stabroek oil field off Guyana’s coast, operated by ExxonMobil with participation from China’s Cnooc. Both ExxonMobil and Cnooc held preemptive rights to purchase Hess’s assets.

In March 2024, ExxonMobil filed for arbitration to halt the deal, asserting its preemptive rights. Chevron argued that these rights did not apply to a corporate merger, a stance upheld by the arbitration panel.

The Stabroek field remains one of the region’s most valuable assets, producing over 600,000 barrels of oil per day in 2024.

ExxonMobil expressed dissatisfaction with the arbitration ruling but said it would abide by the decision and continue operations in the region, maintaining control over the majority of the field and its role as the key operator in Guyana.