Exxon Mobil CEO Foresees Lengthy Arbitration with Chevron Over Guyana Oil Block

Exxon Mobil CEO Foresees Lengthy Arbitration with Chevron Over Guyana Oil Block

Lucia da Silva
1 min read

Exxon Mobil and Chevron Dispute Over Guyana Oil Block Arbitration Likely to Extend Into 2025

Exxon Mobil's CEO, Darren Woods, foresees that the arbitration with Chevron regarding a substantial oil block in Guyana will probably stretch into 2025. The conflict originated when Exxon (XOM) lodged a case with the International Chamber of Commerce in March, asserting their right to first refusal over any sale of Hess' 30% stake in the Guyana oil block. Hess (HES) had initially aimed to conclude the deal in mid-2023 but has cautioned about a delay until next year. Moreover, Chevron (CVX) CEO, Mike Wirth, also indicated a comparable timeline, anticipating a hearing in Q3 and a decision in Q4. Both companies are unwavering in their determination to safeguard their shareholder value in this significant deepwater development project.

Key Takeaways

  • Exxon Mobil (XOM) and Chevron (CVX) arbitration over Guyana oil block could extend into 2025.


The arbitration between Exxon Mobil and Chevron over the Guyana oil block holds substantial implications for all parties involved. In the near term, this dispute might lead to a postponement in the project's progress, potentially impacting Guyana's economy and its stake in the oil block. Hess, initially expecting to finalize the deal in mid-2023, now encounters a further setback, which could affect its shareholder value.

Did You Know?

  • International Chamber of Commerce (ICC) Arbitration: This is a process by which companies or individuals resolve disputes outside of the court system, using neutral third-party experts. In this case, Exxon Mobil has initiated the ICC arbitration against Chevron over the right to first refusal of Hess' 30% stake in the Guyana oil block.
  • Right to First Refusal: This is a contractual right that provides one party with the opportunity to enter into a business transaction with another party before anyone else can. Exxon Mobil claims it has this right over any sale of Hess' stake in the Guyana oil block and thereby disputes Chevron's purchase of that stake.
  • Guyana Oil Block: This refers to a deepwater oil development project off the coast of Guyana, in which Exxon Mobil, Hess, and Chevron all have stakes. The dispute between Exxon Mobil and Chevron revolves around the sale of Hess' 30% stake in this project.

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