Chevron Corp. said on Feb. 26 it was in talks with Exxon Mobil Corp. and China's CNOOC over whether the two have a right of first refusal to acquire Hess Corp.'s stake in the Stabroek oil block in Guyana.
Last October, Chevron agreed to buy Hess Corp. for $53 billion largely to obtain its 30% share of the prolific block, which has at least 11 Bbbl of oil. Failure to reach an agreement could disrupt the Hess acquisition, Chevron said in a securities filing.
"Chevron and Hess believe these discussions will result in an outcome that will not delay, impede or prevent the consummation of the merger," the No. 2 U.S. oil firm said in its filing. However, the dispute could go to arbitration if the talks do not result in a settlement, it added.
Hess shares fell nearly 3% in late trading.
Exxon confirmed the talks in a statement, adding it intends to "preserve our right to realize the significant value we’ve created and are entitled to in the Guyana asset." The company is "working closely with the Guyanese government to ensure their rights and privileges."
Chevron did not immediately reply to a request for comment.
The pending acquisition of Hess would give Chevron a 30% stake in the Stabroek offshore oil block in Guyana. The U.S. Federal Trade Commission has sought additional information on the merger, which has delayed any closing to at least the middle of this year.
The Exxon-led consortium has said it expects to triple Guyana's oil output to more than 1.2 million barrels of oil per day by 2027.
Recommended Reading
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
Technip Energies Wins Marsa LNG Contract
2024-04-22 - Technip Energies contract, which will will cover the EPC of a natural gas liquefaction train for TotalEnergies, is valued between $532 million and $1.1 billion.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.
TotalEnergies Restarts Gas Production at Tyra Hub in Danish North Sea
2024-03-22 - TotalEnergies said the Tyra hub will produce 5.7 MMcm of gas and 22,000 bbl/d of condensate.