US oil and gas company Hess is currently involved in three lawsuits over allegations of inadequate disclosures regarding its proposed $53 billion acquisition by Chevron. The acquisition, agreed upon in October 2023, is an all-stock transaction through which Chevron seeks to obtain Hess’s 30% interest in the Stabroek block. This block is operated by ExxonMobil Guyana, which holds a 45% stake, and CNOOC Petroleum Guyana, which holds a 25% share. However, the transaction is pending approval from the Federal Trade Commission and faces a dispute with ExxonMobil, which has initiated arbitration proceedings, claiming pre-emption rights over Hess’s stake in the block. The estimated reserves in the block are up to 11 billion barrels. The lawsuits aim to delay or halt the deal, with Hess shareholders set to vote on the matter on May 28. Despite deeming the lawsuits to be without merit, Hess has voluntarily opted to supplement its proxy statement with additional disclosures to avoid further costs. Demand letters from purported stockholders further allege disclosure deficiencies. The successful merger hinges on resolving the dispute with ExxonMobil and CNOOC.
Oil and Gas, Legal and Regulatory Affairs,United States, Guyana
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