Exxon Confident Its Intent in Writing Guyana Contract to Prevail
- Chevron’s $53 billion deal ensnared in tussle over oil finds
- China’s Cnooc files separate arbitration case against Chevron
Exxon’s decision to seek arbitration has thrown a wrench into the biggest deal of Chevron CEO Mike Wirth’s tenure.
Photographer: Jose A. Alvardo Jr./BloombergThis article is for subscribers only.
Exxon Mobil Corp. is convinced its interpretation of intent in a Guyanese oil contract signed a decade ago will prevail in a landmark arbitration case against Chevron Corp.
Exxon, which operates and owns 45% of a deepwater oil block in Guyana’s known as Stabroek, is accusing Chevron of attempting to circumvent a right-of-first-refusal provision through its $53 billion deal to buy Hess Corp. and its 30% stake. Chevron has countered that the provision doesn’t apply to a corporate merger and is “confident” it will win the dispute.