NorthAmOil: Hess-Chevron $53bn deal in the crosshairs

Hess is holding a shareholder meeting on May 28, and some of its investors are baulking at backing the company’s $53bn acquisition by Chevron until there is clarity about Chevron’s arbitration with ExxonMobil. Hess is also facing lawsuits over the issue.

At issue between Exxon and Chevron is Hess’ 30% stake in the prolific Stabroek Block off Guyana, which is operated by Exxon, a 45% owner. It is Hess’ most valuable asset and the crown jewel in the acquisition, Chevron’s biggest deal in two decades

Exxon maintain it has the right of first refusal for Hess’ stake in Stabroek, while Chevron disputes that contention. The dispute, which became public earlier this year, is set for arbitration at the International Chamber of Commerce in Paris, a proceeding that may drag on until 2025.