Chevron’s $53 billion bid to acquire Hess hinges on a high-stakes arbitration with ExxonMobil, which claims a right to Hess’ coveted stake in Guyana’s booming oil fields, The Wall Street Journal writes.
The region has quickly become one of the most profitable in the world, with daily output nearing 650,000 barrels and projected to double by 2027—surpassing even the Bakken Shale. For Chevron, securing Hess would plug long-term gaps in its production portfolio and boost competitiveness against ExxonMobil, whose shares have recently outpaced Chevron’s.
But the deal’s delay has already stretched nearly two years, preventing Chevron from pursuing other megadeals and exposing it to pressure from investors. Adding to the tension: U.S. officials plan to let Chevron’s Venezuela license expire, further raising the stakes in Guyana.
As investor activism looms larger over the energy sector, a misstep could leave Chevron vulnerable. While Exxon says it’s protecting shareholder value, analysts believe the fallout from this dispute—win or lose—will reshape the relationship between the two oil giants for years to come.
