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Chevron Closes $55 Billion Hess Deal After Arbitration Win Over Exxon

By  |  July 21, 2025

Chevron has officially closed its $55 billion acquisition of Hess Corporation following a decisive legal victory over Exxon Mobil, clearing the way for access to one of the most significant oil discoveries in recent history, according to Reuters.

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    The transaction, one of the largest energy mergers in the past decade, grants Chevron a substantial stake in Guyana’s Stabroek Block—an offshore field that contains more than 11 billion barrels of recoverable oil. The Stabroek Block has emerged as one of the world’s fastest-growing oil-producing regions, driven by rapid development and robust output led by a consortium including Exxon, Hess, and China’s CNOOC.

    Per Reuters, Chevron had faced stiff resistance from Exxon and CNOOC, both of whom claimed a contractual right of first refusal on Hess’s Guyana stake under a confidential joint operating agreement. The dispute led to a prolonged arbitration process that delayed the closing of the acquisition for over a year.

    The International Chamber of Commerce (ICC) ultimately sided with Chevron, enabling the deal to move forward. Exxon, in a statement quoted by Reuters, expressed disagreement with the decision but acknowledged the outcome, saying it respects the arbitration and dispute resolution process. CNOOC echoed similar sentiments, noting its disappointment with the ruling.

    Chevron CEO Mike Wirth had long identified the acquisition as a central piece of his strategy to revitalize the company’s portfolio and improve its competitive standing. “This merger of two great American companies brings together the best in the industry,” Wirth said in an official statement following the close.

    Related: Exxon Mobil to Lay Off Nearly 400 Employees in Texas Following Merger

    Despite the uncertainty surrounding the arbitration process, Chevron had been laying the groundwork for integration well in advance. Reuters previously reported that IT teams from both companies were collaborating on transition plans, while Hess employees were offered the option to apply for severance as the merger neared completion.

    Speaking with Reuters on Friday, Wirth noted that integrating personnel and technology systems from both firms would take several months.

    The legal battle highlighted not only the commercial value of the Stabroek Block but also raised broader questions about how joint operating agreements are interpreted in the oil and gas industry. According to Reuters, the dispute centered around just a few words in the agreement, underscoring how small contractual nuances can lead to major consequences in multibillion-dollar ventures.

    While Chevron and Exxon maintain partnerships in other global projects, the arbitration had little impact on those collaborations, per CNBC. The outlet also cited Exxon CEO Darren Woods, who said the company would review the decision closely and consider changes to future contracts to avoid similar legal setbacks.

    Source: Reuters