WionDrive News Desk 
A decision on the USD 53 billion sale of Hess Corp to Chevron remains in limbo three months after the case was initiated, pending the appointment of the third arbitrator crucial to the arbitration panel. This panel will determine whether Exxon Mobil has a right of first refusal over Hess’ operations in Guyana.
Sources familiar with the matter confirm that the third arbitrator has yet to be appointed, potentially delaying a resolution beyond Hess’s projected timeline for this year. Chevron’s stock has seen a 7.8% decline since the deal’s announcement, reflecting market uncertainty.
Under the arbitration process, each side appoints one arbitrator, who then collectively nominate the third. The International Chamber of Commerce (ICC), overseeing the panel, has not provided updates on the appointment or the case timeline.
Hess anticipates a decision by the end of 2024, although legal experts note that arbitration timelines can vary widely. Mark Kelly of MKP Advisors remarks on market expectations for a swift resolution, expressing confusion over Exxon’s undisclosed objectives in the dispute.
Originally aiming to finalise the acquisition by mid-year, Chevron faces regulatory scrutiny from the U.S. Federal Trade Commission regarding potential antitrust issues. The deal would grant Chevron a 30% stake in a lucrative Guyana oil consortium with substantial reserves.
While Hess shareholders narrowly approved the sale, uncertainties persist over Exxon’s assertion that its preemptive rights under the joint operating agreement (JOA) with Hess and CNOOC apply to the transaction. Chevron contends otherwise, asserting that these rights do not extend to the sale of the entire Hess corporation.
Both Exxon and Hess have refrained from disclosing specifics of the JOA, emphasising its confidentiality. Despite previous expectations for a quicker resolution, Hess now targets completion by year-end, contrasting with Exxon’s CEO Darren Woods’ forecast that the dispute could extend into 2025.
