The US Federal Trade Commission (FTC) has approved the US$53bn purchase of Hess Corporation by the US oil and gas company Chevron. Shareholders of the US company Hess had approved the proposed merger with Chevron in May 2024. The merger was originally announced in October 2023.
This approval clears an important obstacle, but the agreement still remains subject to the Merger Agreement's closing conditions, including the resolution of an ongoing arbitration battle with ExxonMobil and China’s CNOOC over assets in Guyana. Indeed, both companies have filed a dispute asserting they have a right of first refusal to any sale of Hess's Guyana assets. Hess owns a 30% stake in the Stabroek Block in Guyana, operated by ExxonMobil (45%) and CNOOC (25%).
Hess Corporation is an independent energy company active in the exploration and production of crude oil and gas, with major positions offshore Guyana, the Bakken shale play in North Dakota (US), the deepwater Gulf of Mexico (US) and the Gulf of Thailand.