(OilNow) CHEVRON has won a high-stakes arbitration battle against ExxonMobil, clearing the way to finalise its US$53 billion acquisition of Hess Corporation and secure a 30% stake in Guyana’s Stabroek Block, a prized asset that has won global attention in the last decade.
Though Exxon disagrees with the decision, in a statement issued Friday morning, it welcomed Chevron to the Guyana venture and stressed that it looks forward to continued value creation.
Exxon: “We disagree with the ICC (International Chamber of Commerce) panel’s interpretation but respect the arbitration and dispute resolution process. As we’ve said before, ExxonMobil and CNOOC are aligned that we had a duty to ensure contract terms are always adhered to and not set a bad precedent for ourselves and industry.”
The company also stressed the value created through its early investment in Guyana, adding: “We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved.”
The International Chamber of Commerce, which oversaw the dispute, ruled against Exxon and its partner CNOOC, which had claimed pre-emptive rights to purchase Hess’s interest in the block.

Reuters reported there is no appeals process at the ICC, making the panel’s decision final.
The ruling ends a legal standoff that had delayed Chevron’s takeover of Hess for more than a year. At the heart of the dispute was the interpretation of a pre-emption clause in the joint operating agreement governing the Exxon-led group in Guyana.
Despite the prolonged arbitration, Chevron had been preparing to swiftly close the deal.
Reuters said the company is expected to finalise the acquisition within 48 hours of the arbitration’s conclusion and complete related operational tasks within 45 days.
According to Reuters, shares in Chevron rose 3% in pre-market trading following the news, while Hess jumped 7%. Exxon shares dipped slightly.
The acquisition gives Chevron entry to Guyana, where Exxon has discovered more than 11 billion barrels of oil and gas since 2015. The Exxon-led group managed a combined profit of US$10.4 billion last year, with US$3.1 billion going to Hess.
Despite the legal battle, operations in the Stabroek Block are not expected to be affected.