Chevron has prevailed against Exxon Mobil in a dispute over Hess Corporation’s offshore oil assets in the South American nation of Guyana, Exxon CEO Darren Woods told CNBC’s Becky Quick on Friday.
The ruling by the International Chamber of Commerce in favor of Chevron clears the way for the oil major to complete its $53 billion acquisition of Hess Corporation.
Chevron shares jumped about 3% in premarket trading.
“We disagree with the ICC panel’s interpretation but respect the arbitration and dispute resolution process,” Exxon said in a statement Friday.
The dispute had created significant uncertainty over whether Chevron’s acquisition of Hess would close, weighing on the oil major’s stock performance. The transaction would have failed if Exxon had prevailed.
Exxon and China National Offshore Oil Corporation had filed an arbitration case with the ICC, claiming a right of first refusal over Hess’s assets in the Stabroek Block, an oil development off the coast of Guyana.
Hess has a 30% stake in an oil patch, while Exxon leads the project with a 45% stake and CNOOC maintains 25% stake.
“We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved,” Exxon said.
