ExxonMobil’s Chief Executive Officer (CEO), Darren Woods has made it clear that his company does not intend to disrupt the proposed merger between Chevron and Hess. Woods said his company is only interested in preserving its fundamental right to purchase the shares held by Hess in the oil-rich Stabroek Block.
This publication previously reported that the Stabroek Block operator initiated arbitration proceedings against Hess Corporation’s proposed sale of its Guyana oil properties, potentially endangering Chevron’s ambitious $53 billion acquisition plans.
The company was engaged in negotiations with Chevron and Hess but failed to reach a consensus on the terms of its right of first refusal, which prompted the formal filing with the International Chamber of Commerce.
Exxon has thus far revealed that such a move will safeguard its interests, asserting that the arbitration case aims to preserve its right to acquire Hess’s 30 percent stake in the Stabroek Block.
“We’re not challenging the Chevron-Hess merger,” Woods emphasized during the opening session at CERAWeek by S&P Global in Houston. “We were basically standing up for what we believe is a fundamental right that exists within the contract that the partner signed when developing that resource.”
As stated, ExxonMobil’s move to initiate arbitration proceedings regarding oil discoveries in Guyana’s Stabroek block, could potentially impact Chevron’s $53 billion acquisition of Hess, a key player with a 30% interest in the Stabroek block. In this venture, ExxonMobil holds a 45% stake, while CNOOC Ltd maintains a 25% interest.
During the session, Woods shared his company’s perspective on the matter, highlighting the importance of asserting their rights in the Guyana development, which he believes has the potential to become one of the most successful deepwater projects in history. He also noted that protocols exist within the contract for partners wishing to exit the project.
Regarding the possibility of ExxonMobil pursuing a Hess acquisition should the Chevron deal fall through, Woods dismissed any interest, stating that his company wouldn’t have waited for Chevron to make an offer if they had been interested in Hess.
In addition to addressing the merger dispute, Woods also discussed ExxonMobil’s lawsuit aimed at preventing a proposed climate resolution, pushed by climate activist investors, from being presented at the company’s shareholder meeting in May. He expressed frustration with what he described as “illegitimate investors” hijacking the shareholder process to further their own agendas and expressed hope that the lawsuit would rectify what he sees as a misuse of the process.
