A long-running arbitration case that could impact the future of Guyana’s oil industry has reached a critical point. According to sources cited by Reuters, arbitrators involved in the dispute between ExxonMobil and Hess Corporation over Chevron’s planned acquisition of Hess have now reached a decision.
The ruling, which has not yet been publicly disclosed, is being reviewed by the Paris-based International Chamber of Commerce (ICC), which is overseeing the proceedings. The outcome will determine whether Chevron can proceed with its US$53 billion acquisition of Hess—an acquisition largely driven by Hess’s 30% stake in Guyana’s highly productive Stabroek oil block.
ExxonMobil, the operator of the Stabroek block with a 45% interest, and China’s CNOOC (which holds the remaining 25%) had filed arbitration claims, arguing they have the right of first refusal to purchase Hess’s stake. This means they believe they should be given the opportunity to buy out Hess before Chevron can finalize its takeover. Chevron and Hess, however, maintain that the right-of-first-refusal clause does not apply in the case of a full corporate acquisition.
While Exxon has issued a brief statement expressing confidence in its legal position and appreciation for the panel’s deliberations, neither Hess, Chevron, CNOOC, nor the ICC has responded to recent requests for comment.
Chevron’s interest in Guyana is no small matter. The Stabroek block has been at the heart of the country’s oil boom, with billions of barrels of recoverable oil and massive future earning potential for the partners involved. For Chevron, securing this stake is central to its strategy to offset declining global reserves and bolster long-term production.
The decision, once formally released, could have major implications not just for the companies involved, but for Guyana as a key player in the global energy market. Should the arbitration panel side with Exxon and CNOOC, it could derail the Chevron-Hess merger altogether, leaving the future structure of one of the world’s most valuable oil ventures uncertain.
Guyana is currently producing approximately 645,000 barrels of oil per day. This production comes from three floating production, storage, and offloading (FPSO) vessels: Liza Destiny, Liza Unity, and Prosperity. The consortium led by ExxonMobil is responsible for all oil production in Guyana.
