(Reuters) - U.S. energy major Chevron ( CVX ) has agreed Hess CEO John Hess will not join its board in an agreement with the U.S. Federal Trade Commission to proceed with the $53 billion takeover deal, Bloomberg News reported on Thursday citing people familiar with the matter.

The proposed all-stock acquisition, first announced in October, is one of the biggest in the U.S. oil and gas industry and the latest among a slew of multi-billion dollar deals in the space.

Chevron ( CVX ), Hess and the FTC did not immediately respond to Reuters' requests for comments.

The approval clears one hurdle, but Chevron ( CVX ) still needs to win an arbitration challenge filed by Exxon Mobil over Hess' stake in a Guyana oilfield - a coveted asset in the proposed merger.

Exxon and CNOOC Ltd, partners of Hess in the Guyana joint venture, are challenging the deal by claiming a right of first refusal to any sale of Guyana assets.

Hess owns 30% of Guyana's giant Stabroek block operated by Exxon, which owns 45%. China's CNOOC Ltd holds the remaining 25%. The companies expect to double production to 1.3 million barrels of oil and gas per day by 2027.

(Reporting by Sourasis Bose and Mrinalika Roy in Bengaluru; Editing by Anil D'Silva and Krishna Chandra Eluri)