Hess Corp. is confident in winning an arbitration case with Exxon regarding a critical oil project linked to Chevron’s $53 billion takeover. Hess maintains Exxon’s claims lack merit, with a decision expected by September. Both companies are optimistic about their positions in the ongoing proceedings.
Hess Corporation has expressed strong confidence in settling an arbitration concerning a substantial oil project, which is crucial for Chevron Corporation’s impending $53 billion acquisition. Chief Executive Officer John Hess stated that Exxon’s claim to a right-of-first-refusal regarding Hess’s 30% stake in Guyana’s Stabroek block is “baseless” and “without merit”. He emphasized, “We think it’s very clear that the words on paper in English law that there’s no right or refusal to be exercised.”
The arbitration is being conducted under the auspices of the International Chamber of Commerce and is anticipated to yield a decision by the third quarter of this year. This timeline follows nearly two years since Hess accepted Chevron’s acquisition proposal. In parallel, Exxon executives have also expressed optimism regarding their position; CEO Darren Woods remarked, “We wrote these documents, we understood the intent of those documents.”
According to Hess, the companies have exchanged relevant evidence and arguments to support their claims. He noted, “The three arbitrators that are in-place now have been very clear” about issuing a decision by September, leading to the closure of the merger deal. In discussions with Goldman analyst Neil Mehta, Hess further advised that the incoming administration might want to consider refilling the Strategic Petroleum Reserve, which had been previously drawn upon to mitigate fuel price increases following Russia’s actions in Ukraine.
In summary, Hess Corporation’s assurance of a favorable outcome in the Exxon arbitration underscores its importance for the successful completion of Chevron’s acquisition. With expectations for a decisive ruling by September, both companies remain optimistic about their legal standings. Furthermore, industry insights suggest that strategic actions may be warranted in light of recent global market disruptions.
Original Source: worldoil.com
