02:38 PM EDT, 05/13/2024 (MT Newswires) -- (Updates with details throughout)

Proxy adviser Institutional Shareholders Services recommended that Hess (HES) shareholders abstain from voting on Chevron's ( CVX ) proposed $53 billion acquisition of the company, according to media reports.

The firm made its recommendation based on a number of factors, including the possible delay in deal closing as a result of the arbitration initiated by Exxon Mobil ( XOM ) over Hess' 30% stake in the Stabroek oilfield in Guyana.

Exxon Mobil ( XOM ), which is the operator of the oilfield with a 45% stake in the block, is looking to establish its right of first refusal over Hess' 30% stake.

Hess' ownership in Stabroek is a key focus of Chevron's ( CVX ) purchase of the company, and Chevron ( CVX ) previously warned the merger could collapse if no resolution is reached between the parties.

China's Cnooc, which also owns a stake in Stabroek, also previously filed an arbitration claim against Hess over the stake.

The ISS also reportedly echoed concerns by some Hess shareholders over the value Chevron ( CVX ) has placed to buy the business.

Hess shareholders are due to meet May 28 to vote on Chevron's ( CVX ) takeover.

Hess and Chevron ( CVX ) did not immediately respond to requests for comment from MT Newswires.

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