Chevron completes $55 billion acquisition of Hess after legal battle with Exxon Mobil for access to the prolific Stabroek Block in Guyana, holding over 11 billion barrels of oil. Both Exxon and CNOOC, partners in Guyana, disputed the acquisition, leading to a year-long arbitration process. There is no appeals process for the arbitration ruling.

Chevron CEO Mike Wirth emphasizes the strategic importance of the acquisition in turning around the company’s performance. Integration planning between Chevron and Hess has been ongoing, and technology conversion and employee integration will take a few months. Chevron and Exxon stocks were slightly down post-announcement.

The legal battle highlights the immense value of the Stabroek Block, driving profits for the Exxon-led consortium and transforming Guyana’s economy. The case revolved around interpreting specific words in the joint operating agreement. Hess’ earnings from Guyana increased to $3.1 billion last year, while Chevron’s adjusted earnings were $18.3 billion. Exxon CEO Darren Woods stated they may make provisions in contracts to avoid future disputes.

Read more at Yahoo Finance: Chevron closes Hess acquisition after winning Exxon legal battle