12:56 PM EDT, 09/30/2024 (MT Newswires) -- (Updates with statement from Chevron ( CVX ) CEO in the final paragraph.)

The Federal Trade Commission said Monday it approved a proposed consent order prohibiting Chevron ( CVX ) from appointing Hess (HES) Chief Executive John Hess to its board of directors as part of Chevron's ( CVX ) deal to acquire Hess.

According to the FTC's original complaint, the Hess CEO allegedly communicated privately and publicly with the past and present secretaries general of the Organization of the Petroleum Exporting Countries, or OPEC, as well as an official from Saudi Arabia.

"In these communications, Mr. Hess stressed the importance of oil market stability and inventory management and encouraged these officials to take actions on these issues and speak about them at different events, the complaint alleges," the FTC said. "Mr. Hess further encouraged his OPEC competitors to stabilize production and draw down inventories."

The Chevron-Hess merger agreement requires Chevron ( CVX ) to take all necessary actions to appoint the Hess CEO to its board, the FTC said, adding that as a Chevron ( CVX ) board member, Hess would gain a larger platform to amplify his messaging to OPEC and others about OPEC's market stability goals, "increasing the likelihood that Chevron ( CVX ) could align its production with OPEC's output decisions to maintain higher oil prices."

In addition, the proposed consent order bans Hess from serving in an advisory or consulting capacity to, or as a representative of, Chevron ( CVX ) or its board.

"I have the utmost respect for John, the company he has built, and the contributions he has made to our industry," Chevron ( CVX ) Chairman and CEO Mike Wirth said in a statement. "It is unfortunate that our Board of Directors will not get the benefit of his decades of global experience, but we look forward to drawing upon his knowledge, relationships and experience in Guyana through his service as an advisor to Chevron ( CVX )."

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