Chevron is set to finalize its $53 billion acquisition of Hess after winning a landmark arbitration case against rivals ExxonMobil and CNOOC over control of one of the world’s most promising oil assets — the Stabroek Block offshore Guyana, which holds over 11 billion barrels of oil.
According to CNBC, arbitrators ruled in favor of Chevron, confirming it can proceed with buying the entire Hess corporation. Exxon later confirmed the outcome to Reuters, acknowledging the decision.
Following the news, Chevron shares rose 3.6%, Hess shares jumped 7.4%, while Exxon shares inched up 0.3%.
The legal battle began in 2023, when Exxon and Chinese state-owned CNOOC filed arbitration claims asserting a contractual right of first refusal to acquire Hess’s 30% stake in the Stabroek joint venture. Chevron and Hess argued that such rights did not apply to a full-company acquisition — a view that was ultimately upheld by the arbitrators.
The case drew wide attention across the global energy sector, as its outcome sets a precedent for how Joint Operating Agreements (JOAs) are interpreted in oil partnerships worldwide.
Chevron CEO Mike Wirth called the Stabroek Block a strategic growth asset. Hess’s revenues from Guyana surged from $1.9 billion in 2023 to $3.1 billion in 2024. By comparison, Chevron’s adjusted net profit dropped to $18.3 billion in 2024, down from $24.7 billion the previous year.
As previously reported by Reuters, Chevron had been preparing for months to close the transaction within 48 hours of the arbitration ruling, and to complete remaining tasks within 45 days.
Now, with the legal barriers removed, Chevron is poised to finalize one of the oil industry’s biggest deals in recent decades — solidifying its position in one of the world’s fastest-growing energy regions.
