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Hess says evaluating timeline for closing Chevron's takeover deal

U.S. oil producer Hess said on Thursday it was examining the timeline for closing its takeover deal by Chevron after oil significant Exxon signified a prospective counter offer for Hess's Guyana possessions.

Exxon on Wednesday submitted an agreement arbitration claim related to Hess' suggested sale of its Guyana oil homes and suggested it might counter Chevron's pending offer for the possessions.

The disagreement between the top U.S. oil manufacturers could end the Hess takeover deal, Chevron cautioned in a securities filing last month. If the offer falls part, Hess might be liable for a $1.7. billion break up fee.

The arbitration case seeks to preserve Exxon's right to. assess trying for Hess' 30% stake in the giant Stabroek. offshore oil block if Chevron continues with its proposed $53. billion purchase of Hess.

Exxon is presently in the procedure of closing the. $ 60-billion acquisition of Pioneer Natural ... plausible. to believe that moving toward arbitration might assist postpone the. CVX-Hess transaction and enable Exxon to be in a position for. another significant deal with Hess thereafter, RBC Capital Markets. expert Biraj Borkhataria said.

Chevron's acquisition of Hess has already been stalled by. the U.S. Federal Trade Commission's request for additional. information on the merger. That request pushed back any closing. to at least the middle of this year and Exxon's claim could. extend it further.

Hess told staff members that it disagreed with Exxon's. analysis of the agreement and was confident that its. position will prevail in arbitration.

(source: Reuters)