WASHINGTON, July 17 (Reuters) - The U.S. Federal Trade

Commission on Thursday reversed bans on the CEOs of takeover

targets joining the boards of Chevron ( CVX ) and Exxon Mobil ( XOM )

that the Biden administration made a condition of

clearing the oil giants' deals to buy two other oil producers.

The FTC released Exxon, which acquired Pioneer Natural

Resources last year, from an order barring former Pioneer CEO

Scott Sheffield from its board. Chevron ( CVX ), which agreed to buy

Hess in 2023 for $53 billion, was released from a

similar order keeping that company's CEO, John Hess, off its

board.

FTC Chairman Andrew Ferguson moved to end some efforts

started by his Democratic predecessor, Lina Khan, who raised

concerns that Hess and Sheffield would coordinate with members

of the Organization of the Petroleum Exporting Countries.

Ferguson dissented at the time, saying the orders exceeded the

FTC's authority.

"We are very pleased with the FTC's unanimous decision," a

Chevron ( CVX ) spokesperson told Reuters.

Exxon and Hess did not immediately respond to Reuters

requests for comments. Sheffield could not immediately be

reached for a comment.

While the FTC's three Republican commissioners voted

unanimously to reverse the decisions, Commissioner Mark Meador

said in a statement that OPEC and OPEC+ "operate as a de facto

cartel," making oil markets highly concentrated. The FTC "should

not hesitate to bring enforcement actions against actual

collusion as well as invitations to collude," he said.

Chevron ( CVX ) struck a deal to acquire smaller U.S. oil

producer Hess in October 2023, with an eye on the latter's 30%

stake in the prolific Stabroek Block in Guyana that is operated

by ExxonMobil ( XOM ) with a 45% interest.

ExxonMobil ( XOM ) and Hess are locked in an arbitration case, with

a ruling related to a major oilfield project in Guyana set to

determine whether Chevron ( CVX ) can move forward with its planned

acquisition of Hess.