ExxonMobil welcomed its rival oil major Chevron into the Stabroek Block offshore Guyana, following news that it lost an arbitration battle over Hess Corporation’s 30% stake in the oil block.
“We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved,” Exxon said in a statement on Friday, after a ruling by the International Chamber of Commerce (ICC) cleared the way for Chevron to acquire Hess.
Exxon and CNOOC had spent over a year battling Chevron’s US$53 billion proposed takeover of Hess, arguing that they held pre-emptive rights to purchase Hess’s 30% stake in the Stabroek Block.
But the ICC panel disagreed, delivering a decision that is final and binding, with no appeals process available, Reuters said.
Exxon expressed disagreement with the panel’s interpretation but said it respects the process. “We disagree with the ICC panel’s interpretation but respect the arbitration and dispute resolution process.”
Chevron’s acquisition of Hess will give it a foothold in Guyana, one of the world’s most lucrative oil plays in recent times. Exxon has delivered more than 11 billion oil-equivalent barrels in Guyana and is producing more than 600,000 barrels per day.
Exxon has stressed that day-to-day operations in Guyana will proceed without disruption. Exxon remains the operator of the Stabroek Block and is expected to maintain its current project execution pace, with no adverse effects on field development or production targets.
