Commodities
Exxon Deals Blow to Chevron-Hess Deal With Arbitration Case
- Chevron trying to circumvent Guyana contract: Exxon executive
- Hess shares drop as much as 2.5% in New York on the news
The ExxonMobil Guyana offices in Georgetown.
Photographer: Jose A. Alvardo Jr./BloombergThis article is for subscribers only.
Exxon Mobil Corp. filed for arbitration to retain pre-emption rights in a giant Guyanese oil field, threatening Chevron Corp.’s attempt to acquire a stake via its pending $53 billion takeover of Hess Corp.
Exxon filed for arbitration in the International Chamber of Commerce in Paris on Wednesday, Senior Vice President Neil Chapman said during a Morgan Stanley conference. Exxon, as 45% owner and operator of the Guyana project, believes it has a right of first refusal over any change of hands in Hess’ 30% stake and would consider matching Chevron’s valuation, he said.