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Chambers of commerce

Chevron Receives Green Light to Acquire Hess, Gains Lucrative Oil Project in Guyana

Strategic Insights

— 1 min read

The Paris-based International Chamber of Commerce has given Chevron the go-ahead to acquire Hess, a move that will give Chevron a significant stake in the lucrative oil project off the shores of Guyana. The project, valued at over 11 billion barrels of oil, is considered one of the most promising in the world, with the International Energy Agency (IEA) estimating it will produce around 1% of the world's oil within a few years. Chevron's acquisition of Hess will also grant it access to a range of other assets, including those in North Dakota and Southeast Asia. The deal, worth $53 billion, comes after a two-year wait and has been the subject of a dispute between Exxon and Chevron over Hess's stake in Guyana.

Key Takeaways:

  • Chevron has been given the green light by the International Chamber of Commerce to acquire Hess for $53 billion, allowing it to move forward with the deal after a two-year wait.
  • The acquisition grants Chevron a significant stake in the lucrative oil project off the shores of Guyana, which holds over 11 billion barrels of oil.
  • The project, a partnership between Exxon, Hess, and CNOOC (a Chinese state-owned oil company), is considered one of the most promising in the world, with the IEA estimating it will produce around 1% of the world's oil within a few years.
  • The acquisition also gives Chevron access to a range of other assets, including those in North Dakota and Southeast Asia.
  • The deal is seen as a significant move by Chevron to expand its operations and better compete with its U.S. rival, Exxon.
  • Exxon, which operates the project and holds the largest stake of 45%, has welcomed Chevron to the venture, citing the potential for continued industry-leading performance and value creation in Guyana.

Statistics:

  • The oil project in Guyana is valued at over 11 billion barrels of oil.
  • The International Energy Agency (IEA) estimates that the project will produce around 1% of the world's oil within a few years.
  • Chevron's acquisition of Hess is worth $53 billion.
  • The project is a partnership between three companies: Exxon (45%), Hess (30%), and CNOOC (25%).

Sources:

  • "Chevron Gets ICC Approval to Acquire Hess in $53 Bn Deal" (Source: Reuters) -
  • "International Chamber of Commerce: ICC" (Source: International Chamber of Commerce)
  • "International Energy Agency (IEA): World Energy Outlook" (Source: International Energy Agency)

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