Latest update June 3rd, 2026 12:40 AM
Hess’ shareholders to vote today on US$53B takeover by Chevron
Kaieteur News – The US$53 Billion deal for the acquisition of Hess Corporation by Chevron Corporation faces a shareholder vote today.
John Hess, the boss of the oil company has rallied his shareholders to support the deal – Bloomberg recently reported. The Chief Executive Officer (CEO) is telling investors he got the best deal possible, and that Chevron could walk away if the merger does not get voted through at a May 28 shareholder meeting.
While some shareholders have already announced that they will abstain from voting, others have gone the legal route alleging inadequate disclosure by the company on the deal.
The multi-billion takeover of Hess by Chevron was announced in October 2023. Since then there have been several new developments in relation to Hess’ most valuable asset in Guyana – the Stabroek Block – Hess Guyana holds a 30% interest in the oil block.
The operator of the block, ExxonMobil Guyana Limited (EMGL) and the third partner CNOOC Petroleum Guyana Limited have both moved to arbitration, filing their case at the International Chamber of Commerce in Paris, arguing that it has a right of first refusal over Hess’ stake. Exxon holds a 45% interest in that block, and CNOOC with 25% interest.
Darren Woods, the CEO of Exxon has said that his company is trying to secure preemption rights over Hess Corporation’s Guyana assets (the 30% stake) in its dispute with Chevron. He clarified that Exxon was not trying to buy over Hess Corporation.
For their part, Hess and Chevron have said they disagree with Exxon’s interpretation of the Joint Operating Agreement (JOA) that governs the Exxon, Hess and CNOOC consortium governing the Stabroek Block.
Moreover, with the arbitration pending, Hess shareholders would not receive any dividends from Chevron until the arbitration case ends, which Exxon’s CEO has said could be next year – Bloomberg reported.
The fight over Guyana’s Stabroek Block resources finds its genesis in the lopsided oil deal signed by the APNU+AFC Coalition administration back in 2016. This deal extends favourable terms to the oil companies, providing unlimited tax waivers, uncapped interest rates and perhaps the lowest royalty rates known to the industry, at a meager two percent.
Production from the Stabroek Block developments sits above 600,000 barrels per day (bdp) – with Exxon having the Liza 1, Liza 2 and the Payara projects online. The oil companies have embarked on an aggressive drilling campaign in the Stabroek Block targeting three other developments: Yellowtail, Uaru and Whiptail projects. It should be noted that Yellowtail, Uaru and Whiptail have already been approved.
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