Hess shareholders approved the proposed $53 billion merger with Chevron, positioning Chevron to gain a significant asset in Guyana and challenge Exxon Mobil’s dominance in the region. The deal, however, still requires regulatory approval and must resolve an arbitration dispute with Exxon and CNOOC, Hess’s partners in Guyana. Regulatory approval is anticipated next month, while the arbitration could delay the deal’s closure until 2025.
Hess CEO John Hess expressed satisfaction with the vote, emphasizing the strategic value of the merger. The acquisition will bolster Chevron’s oil and gas reserves, mitigating geopolitical risks and addressing cost overruns in other projects. Hess shareholders will hold nearly 15% of Chevron and benefit from its larger dividend. Despite approval, Exxon maintains its claim on Hess’s Guyana assets, posing a potential challenge to the merger’s finalization.