By Sabrina Vale
HOUSTON (Reuters) – The final member has been chosen for a three-person arbitration panel aimed at resolving Exxon Mobil’s claim against Chevron’s $53 billion purchase of Hess Corp, two people familiar with the matter told Reuters.
The formation of the panel would be a milestone in a long-delayed process that has cast uncertainty over the megamerger, which both Chevron and Hess expected to be completed in the first half of 2024.
“The appointment of the full arbitration panel is being finalized. We expect to know more about the timeline (of the process) in the coming weeks,” said one of the people familiar with the matter.
Exxon filed for arbitration with the International Chamber of Commerce (ICC) in March, arguing that it has a right of first refusal over Hess’ Guyana assets.
Exxon operates all oil production in Guyana, home to one of the world’s largest recent oil discoveries, with Hess and China’s CNOOC as partners.
Exxon claims the acquisition of Hess Corp is an attempt to circumvent its right of first refusal on the valuable asset in Guyana. Chevron and Hess believe that Exxon’s right of first refusal does not apply due to the structure of the merger and the language of the partnership agreement with Guyana.
To form the three-person panel, each side nominates one arbitrator and both sides nominate a third, according to people familiar with the process.
On May 9, Hess CEO John Hess said he expected the final arbitrator to be appointed by May 17, according to proxy consultant Institutional Shareholder Services.
Exxon CEO Darren Woods said he expects the dispute to last until 2025.
Chevron, Hess and Exxon declined Tuesday to comment on a timeline for a resolution of the dispute.
(Reporting by Sabrina Valle; Editing by David Gregorio)
