05:21 AM EDT, 08/21/2024 (MT Newswires) -- (Adds comment from Hess in the sixth paragraph)

An arbitration panel will examine the hidden value of Hess' (HES) oil assets in Guyana in a dispute between Exxon Mobil ( XOM ) and Chevron ( CVX ) , Reuters reported on Tuesday, citing people familiar with the matter.

Exxon and China's CNOOC, another partner in the venture, claim that they have the first right to buy a stake in the field, Reuters said. They argue that the deal is effectively an asset sale disguised as a merger.

Chevron ( CVX ) and Hess argued that the Guyana asset's value is irrelevant to the arbitration, as Exxon's right does not apply because there is no change in Hess' control of its Guyana unit, the report said.

A three-person arbitration panel will decide the case, which hinges on whether the Chevron-Hess $53 billion deal constitutes a change of control for Hess's Guyana assets, Reuters said.

Exxon Mobil ( XOM ) and Chevron ( CVX ) did not immediately responded to MT Newswires' request for comment.

Hess told MT Newswires that "Exxon and CNOOC continue to ignore the plain language of the operating agreement, and Chevron ( CVX ) and Hess remain confident that the arbitration will confirm that the Stabroek ROFR (right of first refusal) does not apply to the merger."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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