From Yahoo Finance: 2025-05-23 11:50:00

Exxon Mobil, Hess, and Chevron face off in court to decide the fate of Chevron’s $53 billion deal to buy Hess and its 30% stake in Guyana’s lucrative oilfields. The deal, one of the industry’s largest, has been delayed by arbitration disputes with Exxon and CNOOC.

Exxon and CNOOC claim a right of first refusal to purchase Hess’ stake in Guyana. Chevron and Hess argue the clause does not apply to the sale of the whole company. If arbitration ruling goes against them, the acquisition could fail, according to the deal’s terms.

A three-member arbitration tribunal will analyze the dispute in a confidential hearing starting Monday in London. Hess, Exxon, and CNOOC are expected to have submitted written testimony for the tribunal’s consideration. The joint operating agreement in the Stabroek Block is governed by UK law.

Hess, Chevron, and Exxon anticipate a resolution in the third quarter after the hearing. The average ICC arbitration case takes over two years to resolve. The companies are not engaging in delaying tactics, according to William Kirtley of Aceris Law.

The hearing will involve opening statements, cross-examination of witnesses, and questioning by the arbitrators. Large company disputes usually last five days. Oral or written closing statements may be given, followed by a list of key points for the parties.

After the hearing, further arguments are not allowed unless authorized by the arbitrators. Two of the three arbitrators must agree on the final decision. The ICC must render a decision within six months, but the timeline can vary. The draft decision will be reviewed and approved before delivery.

Parties may challenge an arbitral decision on limited grounds under the English Arbitration Act of 1996. Challenges are rarely successful. The decision will be delivered to the parties after ICC approval.

Read more: Exxon, Hess to face off over Chevron deal for oilfield riches