Exxon Mobil (NYSE:XOM) has filed for arbitration in the International Chamber of Commerce in Paris to protect its pre-emption rights over Hess Corporation’s (HES) stake in a Guyanese oil project. The move could be a potential hurdle in Chevron’s (CVX) planned $53 billion acquisition of Hess, announced in October 2023.
XOM argues that it has the right of first refusal in case of any transfer of Hess’ 30% stake due to its 45% ownership stake in this project. XOM intends to match Chevron’s valuation in considering this potential acquisition. Also, Exxon stated that, as it undertook considerable risks in the development of the project, it could contest this transfer to protect the interests of its shareholders.Â
Investors should take note that the primary motive behind the CVX-Hess deal was the acquisition of Hess’ Guyana assets. The addition of Hess’ assets has the potential to boost the performance of any oil…
