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Exxon wants to extract its value from Hess Guyana assets, CEO states

Exxon Mobil want to participate in Hess Corp.'s sale of its Guyana oil production possessions, and extract worth from the work it has actually put into developing the nation's offshore fields, two of its top executives said on Wednesday.

A three-person panel in May is to choose whether Hess's deal to offer itself to Chevron can go on its initial terms. A. difficulty by Exxon and CNOOC Ltd has stalled the second-largest. deal in a recent wave of oil megamergers.

Exxon wants a role in any sale of Hess's 30% stake in its. Guyana holdings and a choice on the assets if its agreement. claim is supported in arbitration, Exxon CEO Darren Woods said. in his most significant talk about the arbitration case to. date.

Analysts have actually put the value of Hess Guyana at in between 60% to. 80% of Chevron's proposed $53 billion purchase of Hess . The joint endeavor has actually discovered more than 11 billion. barrels of oil to date.

The proposed sale neglects a joint endeavor contract that. grants the right of first rejection to any sale of a Guyana. partner's stake, Exxon and CNOOC keep.

We established the value of that asset. We deserve to. think about the value of that property in this deal, and then. the right to take an option on it. There is an option here. We. believe it is in the best interest of shareholders to keep. that value choice, stated CEO Woods, talking to Wall Street. analysts.

Chevron and Hess have declined the claim, arguing the deal. is structured as a merger of the 2 business, and Hess's. Guyana holdings stay undamaged. Hess has actually stated if the Chevron deal. is not concluded it would not separately sell its Guyana. residential or commercial properties to Exxon or anybody else.

Woods challenged Hess's view of a loss at arbitration souring. a sale, saying that's their construct, not ours.

Exxon desires the three-person arbitration panel to consider. the worth of Hess Guyana as part of the considerations.

We'll look at the value and see if that value is in the. benefit of the company, the corporation and the. investors, added Exxon Vice Chairman Neil Chapman.

(source: Reuters)