Sources say that the court hearing for Exxon's dispute with Chevron over Hess-Chevron deal will be held on May 26.
Two sources with knowledge of the matter say that, according to the Paris-based International Chamber of Commerce, a hearing has been scheduled for May 26 in Exxon Mobil’s arbitration dispute regarding Chevron’s planned acquisition of oil company Hess.
The biggest oil find of the last decade, Stabroek, is the focus of the battle between Exxon, one of the largest U.S. producers of oil, and Chevron.
The dispute has caused Chevron to delay its $53 billion deal to purchase Hess announced almost 18 months ago.
Exxon Chevron Hess previously stated that the arbitration hearing was scheduled to take place in May. However, this date had not been previously reported. Sources declined to name themselves because they were unable to reveal the specifics.
Hess' spokesperson referred back to an earlier filing where the company stated that it was expecting a decision by the third quarter. Exxon or Chevron didn't respond to comments. Chevron acquired Hess for its 30% stake in Stabroek. Exxon is the operator of the field, and has a 45% stake. CNOOC is the third partner and holds 25%. Exxon, CNOOC and Chevron filed arbitration claims in March of last year, about four months after Chevron announced it would purchase Hess. They argued that their joint operating agreements with the Stabroek Block gave them a first refusal right to purchase Hess's stake. Hess and Chevron claim that the right of refusal does not apply in their merger. The arbitration case was filed through the International Chamber of Commerce and a three-judge panel will consider the applicability of the right-of-first-refusal clause.
The location of the hearing on May 26 is not known. According to the arbitration rules posted on the ICC website, hearings may be held in person or virtually. Chevron's ability to close the Hess acquisition and gain access to Stabroek are crucial. The field produced more crude than originally expected, and this would give Chevron a significant boost in its total oil production. The field would also increase Chevron's reserves of oil and gas, which had fallen to their lowest level in over a decade by the end 2024.
The block's recoverable resources are estimated at more than 11 billion barils of oil equivalent. Chevron announced in March that it had purchased 4.99% of Hess common shares at the open market. The company stated this was a sign of its confidence to complete the acquisition.
(source: Reuters)
