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Hess signals Exxon arbitration could push a sale into next year
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Hess signals Exxon arbitration could push a sale into next year
Apr 12, 2024 8:37 AM

April 12 (Reuters) - An Exxon Mobil arbitration

case that could block the sale of Hess Corp ( HES ) to Chevron ( CVX )

could drag on until year-end, Hess said in a U.S.

securities filing on Friday.

The filing signals any closing of its $53 billion sale to

Chevron ( CVX ) could fall into next year, at least six months later

than a prior goal of finalising the deal the middle of this

year.

Exxon and CNOOC Ltd filed cases before the International

Chamber of Commerce last month seeking to claim a right to a

first refusal over any sale of Hess's 30% stake in the giant

Stabroek offshore oil block, home of the largest oil discovery

in nearly a decade.

Hess, Exxon and CNOOC are three members of a consortium

developing the oil finds.

Chevron ( CVX ) CEO Michael Wirth last month said

he was

surprised by Exxon's decision to halt discussions to settle

the matter and pursue an arbitration case.

Hess said in its filing that it seeks to have the merits

of the arbitration heard by the third quarter of 2024 and

complete the arbitration by the end of the year.

Neither Chevron ( CVX ) nor Hess can predict the date on which the

transaction will be completed, Hess said in its filing.

On Friday, Hess and Exxon gave a financial go-ahead to a

sixth oil project in Guyana. The project would add 250,000

barrels per day of production by the end of 2027, the companies

said.

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