Exxon, Chevron face off over Guyana asset
Published: 15:18 26 May 2025 BST
Chevron Corporation (NYSE:CVX, ETR:CHV) and Exxon Mobil Corp (NYSE:XOM, ETR:XONA) will square off this week in a private arbitration hearing in London that could determine the future of one of the world’s most lucrative oil discoveries.
At stake is Chevron’s proposed $53 billion acquisition of Hess Corp, whose crown jewel is a 30% stake in a giant offshore oil project in Guyana. The dispute hinges on Exxon’s claim that it holds a contractual right of first refusal over any sale involving the Guyana venture, which also includes China’s Cnooc.
The arbitration hearing marks a critical moment in a battle that has dragged on for more than 18 months, straining ties between two of the world’s top oil companies. The ruling, expected by August or September, will turn on the interpretation of confidential contract language related to the joint venture.
The case has riveted the energy industry and Wall Street, where traders have placed an estimated $10 billion in merger-arbitrage bets on the outcome, according to Bloomberg.
Chevron’s acquisition of Hess would be its largest ever and is seen as a strategic move to secure long-term growth amid investor concerns about its future production pipeline. Hess’s Guyana assets alone could be worth around $40 billion, analysts estimate.
Guyana, where production has reached 650,000 barrels per day, is fast becoming one of the world’s most important new oil regions. Exxon, the project’s operator, expects output to double by 2027.
Exxon’s challenge has chilled what was once a cordial relationship between its CEO Darren Woods and Chevron’s Mike Wirth. A ruling in Exxon’s favor could force Chevron to walk away from the deal—or renegotiate—raising questions about the company’s growth strategy in a tightening global energy landscape.
