ExxonMobil Takes Legal Action Over Guyana Oil Rights, Tensions With Chevron Rise

Published 3 hours agoXOM

ExxonMobil Takes Legal Action Over Guyana Oil Rights, Tensions With Chevron Rise

ExxonMobil has filed for arbitration in March 2024 over its rights to a stake in Guyana's oil-rich Stabroek Block, seeking to exercise its right of first refusal on Hess Corporation's 30% stake. This move is part of a larger dispute involving Chevron's $53 billion acquisition proposal for Hess, which aims to secure Hess's portion in the significant oil discovery. The situation has led to a legal confrontation as ExxonMobil and CNOOC, another stakeholder in the block, challenge Chevron, citing contractual rights that they argue could obstruct the deal.

Reuters reported that the arbitration hearing is set under the International Chamber of Commerce for May 2025. A decision from this confidential proceeding is anticipated in the third quarter of 2025. Meanwhile, this legal battle has heightened the strain between ExxonMobil and Chevron, historically seen as generally cooperative corporate players in the energy sector.

Amid these developments, ExxonMobil's drive to protect its interests in the Guyana region is evident. The stakes in the Stabroek Block are extremely high given its prospective oil wealth. Despite the rising tensions, official remarks highlight that ExxonMobil remains committed to resolving the dispute professionally, focusing on its contractual rights and business strategies.

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