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 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.

The decisions are the latest move by FTC Chairman Andrew

Ferguson to reverse actions by his Democratic predecessor, Lina

Khan.

Khan and her Democratic colleagues had raised concerned Hess

and Sheffield would coordinate with members of the Organization

of the Petroleum Exporting Countries. Ferguson and Republican

Commissioner Melissa Holyoak 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.

"I appreciate the current commissioners for their

willingness to review this case, and I'm obviously pleased that

objectivity and fairness has carried the day in their decision

to vacate the prior order," Sheffield said.

Exxon and Hess did not immediately respond to Reuters

requests for comments.

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.