Chevron-Hess Oil Deal Faces Legal Challenge in London

Exxon and CNOOC invoke right to block $53B Stabroek takeover

A high-stakes legal battle over Guyana’s most lucrative oil assets is unfolding in London, where energy titans are clashing over control of the Stabroek Block- home to one of the world’s largest offshore oil discoveries in recent years.

The dispute stems from Chevron’s proposed US$53 billion acquisition of Hess Corporation, which includes Hess’s 30% stake in the Stabroek Block- a prolific offshore concession that has put Guyana at the center of global energy attention.

However, Chevron’s takeover bid has hit a major roadblock. In March, ExxonMobil, which holds a 45% stake in the block, and China’s CNOOC, which owns 25%, filed formal objections. Both companies are invoking their contractual right of first refusal, arguing that they- not Chevron-should have the first opportunity to buy Hess’s share under the terms of their joint operating agreement.

The case is currently being heard by a three-member arbitration panel under the International Chamber of Commerce, with proceedings taking place in London. The agreement governing the joint venture is subject to UK law.

By the time hearings began on Monday, all parties had submitted most of their written arguments, witness statements, and expert reports to support their positions. A decision is expected by the third quarter of 2025, nearly 18 months after arbitration began.

Analysts say the legal challenge highlights the intense geopolitical and commercial competition now surrounding Guyana’s oil sector, especially as production continues to surge in the Stabroek Block under Exxon’s lead.

Despite the high stakes, the Government of Guyana has remained neutral. Vice President Bharrat Jagdeo told reporters in February that the oil companies must resolve the issue among themselves, adding that the administration will accept whatever outcome the arbitration delivers.

The Stabroek Block has become a cornerstone of Guyana’s economy, with over 11 billion barrels of recoverable oil discovered since 2015. The block is operated by ExxonMobil through its affiliate Esso Exploration and Production Guyana Ltd (EEPGL).