Exxon just isn’t making an attempt to accumulate Hess in dispute with Chevron, CEO says

Exxon just isn’t making an attempt to accumulate Hess in dispute with Chevron, CEO says

HOUSTON — Exxon just isn’t making an attempt to accumulate Hess because the oil main battles with Chevron over profitable oil property in Guyana, CEO Darren Woods mentioned Monday.

When requested instantly, Woods instructed the CERAWeek by S&P International vitality convention that buying Hess just isn’t considered one of Exxon’s goals within the dispute with Chevron. Exxon wouldn’t have waited for Chevron to announce its deal if the corporate had been curious about buying Hess, the CEO mentioned through the interview.

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Chevron’s pending $53 billion acquisition of Hess is essentially a play to realize a foothold in Guyana’s huge oil property. Exxon is claiming a proper of first refusal over Hess’ Guyana property underneath a joint working settlement that governs the Stabroek oil block, which is estimated to have 11 billion barrels of oil and gasoline.

Exxon controls 45% of the Stabroek block, whereas Hess has a 30% stake. The China Nationwide Offshore Oil Company, or CNOOC, controls the remaining 25%.

Exxon escalated the dispute with Chevron by in search of arbitration on the Worldwide Chamber of Commerce in Paris earlier this month. Chevron rejects Exxon’s declare to a proper of first refusal, however has instructed traders in monetary filings that its take care of Hess wouldn’t shut if an arbitration courtroom guidelines in its rivals’ favor.

“We wish to be sure the rights afford to us underneath the JOA are acknowledged and conformed with,” Woods instructed CNBC’s “Squawk on the Avenue” in a separate interview at CERAWeek. Woods mentioned Exxon can also be looking for out how a lot worth Chevron’s deal is inserting on Hess’ Guyana property.

“It offers us the chance to … ensure that we’re making a choice that is in the very best curiosity of the corporate and the shareholders,” Woods mentioned.

Exxon wrote the joint working settlement that governs the Stabroek block, Woods mentioned. “We’re fairly accustomed to the intent and goals and language of that doc.”

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