NorthAmOil: Exxon seeks arbitration in Chevron take-over of Hess

ExxonMobil has filed for arbitration to claims rights in the Chevron take-over of Hess, including Hess’ valuable rights to 30% of the Stabroek Block project off Guyana.

At issue is a joint operating agreement (JOA) that Exxon says gives it a right to bid for Hess’ share of Stabroek, whether Chevron wants it or not.

In October, Chevron and Hess had announced that Chevron would buy Hess for $53bn. The “crown jewel” in Hess’ assets, said analysts, is its interest in Stabroek, the most significant oil discovery in a decade. It would be Chevron’s largest purchase ever.

Stabroek, operated by Exxon, is expected to triple production to more than 1.2mn barrels per day (bpd) by 2027. The field could hold 11bn barrels of recoverable deposits.

The Exxon-Chevron issue, which was a surprise, had emerged in late February in a regulatory filing by Chevron.