Chevron has officially completed its acquisition of Hess Corporation in a deal valued at roughly $US55 billion.
The deal comes to a close following a near two-year-long arbitration process concerning Hess’ 30 per cent stake in Guyana’s Stabroek oil field.
The challenge arose when ExxonMobil and China National Offshore Oil Corporation (CNOOC), also active in Guyana, asserted their pre-emptive right to purchase Hess’ stake in the region. But after a lengthy review, the International Chamber of Commerce quashed this claim on Friday in Paris, removing the final legal block to the acquisition.
“This merger of two great American companies brings together the best in the industry,” Chevron chairman and CEO Mike Wirth said.
“The combination enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders.”
John Hess, former CEO of Hess, has also joined Chevron’s board of directors as part of the acquisition.
“We are proud of everyone at Hess for building one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years, and the Bakken shale, where we are a leading oil and gas producer,” Hess said.
“The strategic combination of Chevron and Hess creates a premier energy company positioned for the future.”
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