July 18, 2025
Chevron Hess Acquisition: The $53 billion Chevron–Hess acquisition is now complete. Chevron prevailed over Exxon Mobil in an arbitration over Guyana's offshore assets.
The International Chamber of Commerce sided with Chevron. That decision opened the door to the takeover. Chevron now gains a big foothold in Guyana’s massive oil fields.
Mike Wirth, Chevron’s CEO, told CNBC on Friday that the company got the result it expected. “The agreement was simple to interpret,” he said. Chevron is pleased to have closed the Hess deal.
He also said the outcome helps the broader industry. It reinforces that asset-level preemption rights don’t extend to whole-company acquisitions.
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Darren Woods, Exxon’s CEO, broke the news to Becky Quick on CNBC earlier Friday.
Chevron’s stock gained more than 2% before the market opened. But by midday, those gains had faded, and the stock was down about 1%.
Exxon shares also slid, losing almost 2%.
In a Friday statement, Exxon said it disagreed with the ICC panel’s view. Even so, it said it respects arbitration.
The dispute had been a big question mark over the Chevron–Hess deal. Investors saw the risk, and Chevron’s stock reflected that pressure. If Exxon had come out on top, the acquisition would have been dead.
Exxon and CNOOC asked an ICC arbitration panel to recognize a first-refusal right on Hess’s Stabroek Block stake.
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Stabroek is a major oil project off the coast of Guyana. Equity split: Exxon 45% (operator). Hess 30%. CNOOC 25%.
“We welcome Chevron to the team,” Exxon stated. The company said it hopes to keep delivering strong results in Guyana.
Chevron’s CEO, Mike Wirth, confirmed there will be “some” workforce reductions as the deal closes.
Chevron was already shrinking its workforce. In February, it revealed plans to cut up to 20% of jobs to control costs.
Mike Wirth said the companies will be merged.
He noted that overlaps are common in such deals. “That means some positions will be reduced,” he explained.
“Our industry has to stay efficient,” Wirth continued. “With evolving technology and tough competition, we need to keep improving.”
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