Hess Corp. has communicated strong confidence in its position within a high-stakes arbitration case initiated by Exxon Mobil Corp. The dispute focuses on Hess’s 30% stake in Guyana’s Stabroek Block, a crucial element to the ongoing $53 billion Chevron Corp. acquisition of Hess. Exxon Mobil is asserting a right of first refusal over this stake, a claim that Hess CEO John Hess has characterized as “baseless” and “without merit.” Speaking at a recent Goldman Sachs Group Inc. conference, Hess highlighted his confidence in the arbitration outcome, emphasizing that under English law, Exxon has no exercisable right.
The proceedings between Hess and Exxon have progressed to the stage where both parties have exchanged evidence and supporting statements. An arbitration panel is anticipated to issue a decision by the third quarter of 2025. The outcome bears significant implications not only for the involved parties but also potentially for future mergers and acquisitions within the energy sector. Hess’s statement stresses the strategic significance of the Stabroek Block deal, underpinning Chevron’s plans to expand its oil production capabilities.