Chevron Wins Arbitration Case Against Exxon Over Guyana Oilfield Acquisition

Chevron has prevailed in arbitration with Exxon Mobil over a planned $53B acquisition of Hess' assets offshore Guyana. An arbitration panel dismissed Exxon Mobil's claim that it had a contractual right to bid for Hess' assets, allowing Chevron to proceed with the acquisition. The ruling was handed down on Friday.

Chevron has successfully concluded its arbitration with Exxon Mobil over the acquisition of Hess' offshore oil assets in Guyana. The International Chamber of Commerce (ICC) ruled in Chevron's favor, dismissing Exxon's claim to a contractual right of first refusal over Hess' assets [1]. This decision clears the path for Chevron to proceed with its $53 billion acquisition of Hess, which includes the company's 30% stake in the Stabroek Block, an oil development off the coast of Guyana.

Chevron's CEO Mike Wirth expressed satisfaction with the outcome, stating that the ruling is a straightforward interpretation of contract language and affirms a long-standing practice that asset-level rights of refusal do not apply in corporate-level M&A transactions [2]. The decision was revealed by Exxon's CEO Darren Woods to CNBC's Becky Quick earlier on Friday [1].

The acquisition will provide Chevron with significant access to Guyana's vast oil reserves. Hess currently holds a 30% stake in the oil patch, while Exxon leads the project with a 45% stake and China National Offshore Oil Corporation (CNOOC) maintains a 25% stake [1]. Chevron's shares rose about 3% in premarket trading following the announcement, while Exxon's stock fell more than 1% [1].

Looking ahead, Chevron anticipates some headcount reductions as the two companies integrate. The CEO noted that such reductions are typical in large-scale acquisitions and are necessary for maintaining efficiency in a competitive industry [2].

References:
[1] https://www.cnbc.com/2025/07/18/chevron-defeats-exxon-in-dispute-over-guyana-oil-assets-clearing-path-for-hess-acquisition.html
[2] https://www.nbcphiladelphia.com/news/business/money-report/chevron-defeats-exxon-in-dispute-over-guyana-oil-assets-clearing-path-for-hess-acquisition/4236808/