Chevron has completed its $53 billion acquisition of American energy company Hess, the oil giant said Friday, after winning a legal dispute against ExxonMobil over offshore oil assets in Guyana.
The outcome followed a decision by the International Chamber of Commerce (ICC), which oversaw the arbitration case.
The issue concerned Hess's 30 percent stake in the Stabroek Block offshore Guyana, a mammoth oilfield that was a driver of Chevron's takeover.
Stabroek is operated by US giant ExxonMobil, holding a 45 percent stake, while the remaining 25 percent of the project is maintained by Chinese company CNOOC.
"Chevron now owns a 30 percent position in the Guyana Stabroek Block, which has more than 11 billion barrels of oil equivalent discovered recoverable resource," the company said in a statement Friday.
It added that it has wrapped up its purchase of Hess "following the satisfaction of all necessary closing conditions, including a favorable arbitration outcome" regarding Hess's offshore Guyana asset.
Chevron shares slipped 0.3 percent around midday in New York, while ExxonMobil shares dropped 2.4 percent.
In a separate statement, ExxonMobil said it disagreed with the ICC panel's interpretation but respects the arbitration and dispute resolution process.
"We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved," an ExxonMobil spokesperson told AFP.
In February last year, Chevron warned that its proposed acquisition of Hess could be at risk if control of the key oil asset was successfully challenged.
The ICC decision "removes a significant overhang" for Chevron, said a note by TD Cowen. This is because "growth prospects in the 2030s were in question," and the acquisition removes this concern.
Stewart Glickman, deputy research director at CFRA Research, said: "We see this transformative project driving meaningful production growth for at least the next three to five years, adding substantial new heft on the liquids side from Guyana, the Permian, and Gulf of Mexico."
Glickman added that Chevron and ExxonMobil must now put the legal dispute behind them as partners in Guyana.
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