Connect with us


Chevron’s $53 Billion Hess Acquisition Is Threatened By Oil Giants

Avatar of AlishbaW



Chevron's $53 Billion Hess Acquisition Is Threatened By Oil Giants

(CTN News) – During its earnings call on Monday, Chevron disclosed that its proposed acquisition of fellow American firm Hess, valued at $53 billion, could be in jeopardy if an effort is made by rival petroleum giants to challenge the control of a key oil asset.

In a filing to the Securities and Exchange Commission (SEC), Chevron acknowledged that however unlikely the outcome may be, there is an opportunity for Hess to “remain an independent company” in the near future. However, the company believes “there is no material likelihood” of this happening.

Hess has a 30% stake in a massive oilfield offshore Guyana, the Stabroek Block, which was the reason for the takeover as it was a mammoth oilfield that instigated the takeover.

An ExxonMobil stake of 45 percent in the stabroek project is owned by US giant ExxonMobil, which operates the facility.

A Chinese company called Cnooc holds the remaining 25 percent of the shares in the project.

As part of the existing operating agreement, existing partners such as ExxonMobil and Cnooc have a “right of first refusal” to purchase the Guyana assets. As a result of the merger and the language of the Stabroek partnership, the American multinational energy companies Chevron and Hess do not believe that the right applies to them, according to a Chevron filing.

It has however been reported that after the Chevron-Hess agreement was announced in October, ExxonMobil and Cnooc have notified that they disagree with the agreement.

“Throughout the last few months, Hess, Chevron, Exxon, and Cnooc have been engaging in constructive discussions regarding the Stabroek (terms). Chevron and Hess are confident that these discussions will lead to an outcome that will not impede, delay, or prevent the merger from being completed,” Chevron said.

If these negotiations do not yield a satisfactory outcome, either Hess or it will have the option of seeking arbitration in the event that these negotiations do not yield a satisfactory conclusion.


Alibaba Employee Provides An Overview Of The Chinese LLM Program

Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

Continue Reading

CTN News App

CTN News App

Recent News


compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies