Exxon Mobil Corp on Wednesday said it filed a contract arbitration disputing Hess Corp’s proposed sale of its Guyana oil properties, and suggested it may counter Chevron Corp’s pending deal for the assets.
Exxon said the arbitration case will preserve its right to acquire Hess’s 30% stake in the giant Stabroek offshore oil block, Senior Vice President Neil Chapman said in a conference on Wednesday.
Stabroek, which is considered the largest oil discovery in decades, is the prize in Chevron’s bid for Hess. Exxon’s move could jeopardize Chevron ‘s $53 billion proposed purchase.
“The preemption rights are to give us the opportunity to look at the value, which we can then match should we choose to do so,” Chapman said at a Morgan Stanley event.
The company has been negotiating with Chevron and Hess over the terms of its right of first refusal to any sale of Hess’s Stabroek stake. It formally filed on Wednesday with the International Chamber of Commerce after failing to reach agreement, he said.
“We, as participant (in the block), have the rights to match a reasonable allocation of the value of the Hess transaction,” Chapman said. “Disputes take place all the time, and they get resolved. The only real difference is this is in the public domain.”
Chevron was not immediately available to comment.
Hess shares fell more than 1.4%, Exxon was up 1.4% and Chevron was up a fraction.
(Reporting by Sabrina Valle)