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Chambers of commerce

Chevron Completes $53 Billion Acquisition of Hess, Gains Access to Guyana's Oil Fields

Strategic Insights

— 1 min read

Chevron Corporation has finalized its acquisition of Hess Corp, gaining control over one of the world's largest oil discoveries in Guyana. The $53 billion deal was approved by an international arbitration panel, which rejected Exxon Mobil's claim to a right of first refusal on Hess's stake in the Stabroek Block offshore Guyana. This acquisition provides Chevron with access to over 11 billion barrels of recoverable resources in Guyana, as well as significant acreage in the Bakken shale region.

Key Takeaways:

  • Chevron has completed its $53 billion acquisition of Hess Corp, gaining control over Guyana's prized oil fields.
  • The acquisition gives Chevron access to over 11 billion barrels of recoverable resources in Guyana, as well as significant acreage in the Bakken shale region.
  • Hess shareholders received 1.025 Chevron shares for each Hess share, with Chevron issuing roughly 301 million new shares in connection with the transaction.
  • The Federal Trade Commission lifted a prior restriction on John Hess joining Chevron's board, pending board approval.
  • Exxon Mobil's attempt to block the deal was rejected by an international arbitration panel, which dismissed its claim to a right of first refusal on Hess's stake in the Stabroek Block.
  • Exxon shares slipped 1.4% in early trading Friday, while Chevron was flat.

Statistics:

  • $53 billion: value of Chevron's acquisition of Hess Corp.
  • 11 billion barrels: recoverable resources in Guyana's oil fields.
  • 1.025: number of Chevron shares received by each Hess shareholder.
  • 301 million: number of new Chevron shares issued in connection with the transaction.
  • 1.4%: decline in Exxon Mobil's share price in early trading Friday.

Sources:

  • [Chevron Corporation, Press Release, Black Friday 2023 (no specific date mentioned), Chevron Completes Hess Acquisition]
  • [Exxon Mobil Corporation, Press Release, Friday (no specific date mentioned), Statement on Chevron-Hess Acquisition]
  • [International Chamber of Commerce, Press Release, Black Friday 2023 (no specific date mentioned), Arbitration Award in Chevron-Hess Acquisition]

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