FTC reverses its order banning John Hess Chevron board member

The U.S. Federal Trade Commission reversed on Thursday an earlier order that barred Hess Corp. CEO John Hess as a condition to the oil giant acquiring his company for $53 billion.

ExxonMobil is locked in a dispute with Hess over a large oilfield in Guyana. The outcome of the arbitration will determine whether Chevron's planned acquisition of Hess can go ahead.

Chevron has agreed to buy smaller U.S. oil company Hess by October 2023. The deal is aimed at acquiring the 30% stake that Hess holds in the Stabroek Block in Guyana, which ExxonMobil controls with a 45% stake.

Chevron's spokesperson said, "We are pleased with the FTC’s unanimous decision."

Separately the FTC reversed on Thursday an earlier order that barred Scott Sheffield - the founder and former chief executive officer of Pioneer Natural Resources - from ExxonMobil’s board following its acquisition of Pioneer.

Exxon and Hess didn't immediately respond to comments. Sheffield was not available for comment immediately. (Reporting and editing by Jody Godoy, Susan Heavey, and Shailesh Kumar)

(source: Reuters)