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Decision reached in ExxonMobil, Hess dispute over Chevron gaining access to Guyana’s Stabroek Block
Stabroek Block
ExxonMobil Corporation CEO, Darren Woods
Kaieteur News – A decision has been reached in the dispute involving oil majors ExxonMobil Corporation and China National Offshore Oil Corporation (CNOOC) over a US$53 billion deal that could grant American oil giant Chevron access to Hess Corporation’s 30% stake in Guyana’s prolific Stabroek Block.
Reuters on Thursday reported that according to sources familiar with the matter the arbitrators in the legal dispute have reached a decision. According to the Reuters report the Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is reviewing the decision before it is released to the parties.
However, it is unclear what the arbitrators decided or when the decision will be released.
“We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves,” an Exxon spokesperson said in a statement to Reuters.
ExxonMobil Guyana holds a 45% interest, while Hess Guyana holds 30% interest and CNOOC Petroleum Guyana Limited with 25% interest.
Hess Corporation CEO, John Hess
In October 2023, it was announced that American oil giant Chevron will be acquiring Hess Corporation for some US$53 billion. The takeover would give Chevron access to Hess’ most valuable asset in Guyana. However, this led to ExxonMobil Corporation, the parent company for ExxonMobil Guyana Limited, the operator of the block filed for arbitration at the International Chamber of Commerce in Paris, arguing that it has a right of first refusal over Hess’ stake.
In May 2025, the oil companies through their lawyers face off before the three-member arbitration tribunal.
ExxonMobil Chief Executive Officer (CEO) Darren Woods had told Reuters the company filed for arbitration because discussions were not happening with Chevron and Hess around the right of first refusal provision. “Those discussions needed to happen and hadn’t been happening,” Woods said in a Reuters article.
He said Exxon wanted to have its right of first refusal recognized before it could decide on its strategy for the Stabroek block. An Exxon executive has said the arbitration could take five to six months.
Meanwhile, CEO of Chevron, Michael Wirth had said Chevron had done extensive due diligence on the operating agreement between Exxon and Hess in Guyana and has extensive experience in those types of agreement around the world. Chevron is looking forward to affirming its understanding of the contract in the arbitration, he added.
Despite Exxon and CNOOC’s claim of right of first refusal on Hess’ share, Hess expressed confidence that the merger would proceed as planned.
“We think Exxon’s position and CNOOC’s position is without merit, baseless. It’s about the right of refusal. We think it’s very clear, the words on paper in English law that there’s no right or refusal to be exercised. So, we’re very confident that merger is going to go through, and we’re getting prepared for that,” John Hess, the CEO of Hess Corporation had stated.
The Stabroek Block located about 120 miles offshore Guyana, spans 6.6 million acres. Oil production offshore Guyana’s Stabroek Block, began in December 2019. Since then, production has grown to 650,000 barrels per day (bpd) from three sanctioned projects: Liza Phase 1, Liza Phase 2, and Payara. This output is set to increase with the imminent start-up of Yellowtail, the fourth development, later this year.
Chevron CEO, Michael Wirth
Exxon already has two other sanctioned projects under its belt, the Uaru and Whiptail. The company has already submitted the Environmental Impact Assessment (EIA) for its seventh project, Hammerhead, with production targeted for 2029. The company has also filed an application for an eighth development named Longtail.
Notably, the deal governing the Stabroek Block 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.
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Exxon mobil it taking advantage over guyana, they are rabing the guyanese people no one is doing anything about it.
Glenn lall is just a talker he is
A next big mouth guyanese.