FTC Approves Chevron-Hess Merger, Bars John Hess from Board

The Federal Trade Commission (FTC) has given the green light to Chevron Corporation's (CVX) acquisition of Hess Corporation (HES), subject to certain conditions. The deal, valued at approximately $53 billion, is set to create one of the world's largest oil and gas producers. However, the FTC has prohibited John Hess, the current CEO and Chairman of Hess, from joining Chevron's board of directors.

The FTC's decision comes after a thorough review of the proposed merger, which raised concerns about potential market dominance and anti-competitive practices. By barring John Hess from Chevron's board, the FTC aims to prevent any conflicts of interest and maintain a level playing field in the industry.

The acquisition of Hess by Chevron is expected to bring significant synergies and cost savings, with an estimated $5 billion in annual savings by 2027. The combined company will have a strong presence in the Permian Basin, with a total of 2.2 million acres, and will be well-positioned to capitalize on the region's growth potential.

The FTC's approval of the merger is a significant step forward for Chevron's expansion plans. However, the exclusion of John Hess from the board may impact the integration and strategic direction of the combined company. As the former CEO and Chairman of Hess, John Hess has a deep understanding of the company's operations and the oil and gas industry. His exclusion from Chevron's board may limit his influence over the strategic decisions of the merged entity.

The ongoing arbitration between Hess, Exxon Mobil, and Cnooc Ltd. over the Stabroek Block offshore Guyana may also have implications for Chevron's plans for the asset. The Stabroek Block is a significant oil discovery, with estimated recoverable resources of over 8 billion barrels of oil equivalent. The outcome of the arbitration could impact Chevron's ability to develop and exploit these resources, as well as its competitive position in the region.

The FTC's approval of the Chevron-Hess deal is expected to influence the competitive landscape in the global oil and gas industry, particularly in regards to exploration and production activities in offshore Guyana. The combined company will have a strong presence in the region, with the potential to drive innovation and investment in the sector.


In conclusion, the FTC's approval of the Chevron-Hess merger, subject to certain conditions, is a significant development in the global oil and gas industry. The acquisition is expected to bring substantial synergies and cost savings, while the exclusion of John Hess from Chevron's board may impact the integration and strategic direction of the combined company. The ongoing arbitration over the Stabroek Block offshore Guyana and the FTC's decision are likely to have far-reaching implications for the competitive landscape in the region.