The final member has been appointed to a three-person arbitration panel tasked with resolving the Exxon Mobil Corporation XOM dispute over Chevron Corporation CVX’s $53 billion acquisition of Hess Corporation HES.
Each side appoints one arbitrator, and those two then jointly select the third member to complete the three-person panel, reported Reuters.
The report cited one of the people familiar with the matter stating, “The appointment of the full arbitration panel is now being completed. We expect to learn more about the (proceedings) schedule in the coming weeks.”
The formation of the panel marks a significant step in a protracted process that has created uncertainty around the mega-merger. Chevron and Hess merger was earlier anticipated to close in the first half of 2024.
Notably, Exxon initiated an arbitration claim with the International Chamber of Commerce (ICC) in March, claiming it holds a right of first refusal on Hess’s assets in Guyana.
Exxon manages all oil production in Guyana, one of the world’s largest recent oil discoveries, in partnership with Hess and China’s CNOOC.
Exxon claims that Chevron’s acquisition of Hess is an attempt to bypass its right of first refusal for the valuable Guyana asset.
Also Read: Exxon Mobil Rakes In Billions from Guyana Oil Deal, Net Margin Tops Chip Giant: Report
Chevron and Hess argue that this right does not apply because of the merger’s structure and the wording of the Guyana partnership agreement.
Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund XLE and IShares U.S. Energy ETF IYE.
Price Action: XOM shares are up 0.18% at $114.38 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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