On February 26th local time, Chevron warned in a regulatory document submitted to the US Securities and Exchange Commission that it may not be able to complete the acquisition of US energy company Hess within the expected time or at all, or may have adverse effects on Chevron.
Chevron stated that the completion of its acquisition of Hess depends on a series of conditions, including regulatory approval and Hess shareholder approval through a merger agreement. According to the statement, Chevron and Hess have had discussions with ExxonMobil and CNOOC regarding the right of first refusal clause in the Guyana Stabroek block joint operation agreement. "If these discussions cannot reach an acceptable solution and arbitration (if conducted) does not confirm that the right of first refusal clause does not apply to the merger transaction, then the transaction conditions under the merger agreement will not be established, and the merger will not be completed.".
ExxonMobil and CNOOC have already held shares in the Stabroek block in Guyana and have the right of first refusal for any ownership changes. Hess currently holds a 30% stake in the block.
According to multiple media reports, ExxonMobil stated in a statement on the 26th, "We have a responsibility to consider the right of first refusal under the Joint Operating Agreement, ensure that we retain the corresponding rights, and realize the significant value that the company has created and is entitled to in Guyana assets, which is our responsibility to shareholders and partners."
Last October, Chevron announced a final agreement with Hess to acquire all of the latter's outstanding shares through full stock trading, with a transaction value of $53 billion, expected to be completed in the first half of 2024. The total value of the enterprise in this transaction, including debt, is 60 billion US dollars.