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CERAWEEK-Exxon CEO states not trying to buy Hess however considers its Guyana stake

Exxon Mobil CEO Darren Woods on Monday stated his business is attempting to establish it has rights over Hess Corp's Guyana properties in its dispute with Chevron, not buy the company itself.

In his very first public remarks on the company's pursuit of an arbitration case that might obstruct Chevron's $53 billion offer for Hess, Woods stated Exxon would not have actually waited for Chevron to reveal its Hess offer if it had actually wished to purchase Hess.

We're basically defending what our company believe is a. fundamental right, Woods informed at the CERAWeek energy. conference in Houston. Exxon is trying to verify and secure. the rights because contract gives the existing partners.

Chevron and Hess have stated they disagree with Exxon's. interpretation of the joint operating arrangement that governs the. consortium accountable for all of Guyana's oil production and. which Exxon claims consists of a right of first refusal.

The file has actually not been revealed. Hess has said the. offer may not be able to close by its prior estimate of mid-2024.

PRIZED PROPERTY

Exxon does not rule out obtaining Hess' whole 30% share. in the giant Stabroek block offshore of Guyana, which would take. its stake to 75%. Exxon currently holds a 45% stake with Hess. and China's CNOOC Ltd as minority partners.

Stabroek is the reward in Chevron's bid for Hess. It is the. site of the largest oil discoveries in practically 20 years and is. expected to produce more than 1.2 million barrels of oil and. gas each day by 2027.

A prospective acquisition of Hess' properties in Guyana would be. the last choice in a three-stage procedure, Woods said.

Exxon first wishes to develop that it holds. preferential rights over Hess Guyana's property, Woods stated. Then. it intends to identify the Hess asset's worth with partners before. If it makes sense for Exxon to take on the, considering. financial investment required for holding a bigger share of the block, the. CEO said.

We've got to surpass the very first obstacle, which is an. alignment, an agreement that a preemption right exists in the. agreement, Woods said. He left open the possibility of an offer. for some or all of the stake.

I don't feel locked into a 75% number, the amount of Exxon. and Hess's current stakes, Woods stated. That is among the. choices. And one of the considerations with that choice would be. the capital requirements that we comfortable with.

A Chevron spokesperson did not respond to request for comment on. Woods' remarks.

TIMING

Exxon comprehends Hess' desire to deal with the matter and. will be very cooperative and try to help with a quickly. resolution of the preemption of rights disagreement, Woods stated.

He stated he does not have a great view on timing for. last resolution on the destiny of Hess' properties. The arbitration. case could last 5 to six months, another executive had stated.

Figuring out how Chevron's proposed acquisition of Hess. will translate into a worth for Hess property in Guyana will be the. 2nd stage of dispute and one that will not be a. uncomplicated black and white procedure, Woods said.

There will be, you know, a great deal of conversation that. occurs in between the celebrations, the CEO stated.

Woods declined to talk about whether he would satisfy this. week with Chevron CEO Michael Wirth or Hess CEO John Hess.

Chevron and Hess were first to reveal in filings that. Exxon planned to bring the dispute to arbitration.

Among the obstacles of this particular offer is it. went public, Woods said. A lot of those discussions (about. agreement terms) needed to occur and had not been happening.

Exxon does business with Chevron all around the world. and will continue to have long partnerships with Chevron, Woods. stated.

This is a service issue, Woods said. We are going to. be a positive force as we work to get to the ideal answer..

(source: Reuters)