The impending arbitration between Exxon and Chevron over the latter’s proposed $53bn acquisition of Hess is set to take place on 26 May, reported Reuters, citing sources.
The arbitration case, which has been a point of contention between the two largest US oil producers, centres on the Stabroek block off the coast of Guyana.
This block represents the most significant oil discovery in the past decade and is a major component of Chevron’s pending acquisition of Hess, initially announced nearly 18 months ago.
The block has exceeded initial production expectations and would significantly enhance Chevron’s overall oil output.
With more than 11 billion barrels of oil equivalent in recoverable resources, it would bolster Chevron’s oil and gas reserves, which reached their lowest level in more than a decade at the end of 2024.
Exxon, which operates the Stabroek block with a 45% interest, alongside CNOOC with a 25% stake, filed arbitration claims in March last year.
These claims, submitted roughly four months after Chevron announced it was to acquire Hess, argue that their joint operating agreement grants them the right of first refusal for Hess’ 30% stake in the block.
Chevron and Hess, however, contend that the right of first refusal is not applicable to their merger.
The case, brought before the International Chamber of Commerce, will be reviewed by a three-judge panel to determine the validity of the right-of-first-refusal clause.
While the date and venue of the hearing had not been disclosed previously, a spokesperson for Hess referred to an earlier statement anticipating a decision by the third quarter.
Neither Exxon nor Chevron has commented on the scheduled hearing, the report said.
Chevron also recently acquired a 4.99% stake in Hess’ common shares on the open market in March, signalling confidence in the deal’s completion.
