An Exxon Mobil arbitration case that could block the sale of Hess Corp to Chevron could drag on until year-end, Hess said in a U.S. securities filing on Friday.
The filing signals any closing of its $53 billion sale to Chevron could fall into next year, at least six months later than a prior goal of finalising the deal the middle of this year.
Exxon and CNOOC Ltd filed cases before the International Chamber of Commerce last month seeking to claim a right to a first refusal over any sale of Hess’s 30% stake in the giant Stabroek offshore oil block, home of the largest oil discovery in nearly a decade.
Hess, Exxon and CNOOC are three members of a consortium developing the oil finds.
Chevron CEO Michael Wirth last month said he was surprised by Exxon’s decision to halt discussions to settle the matter and pursue an arbitration case.
Hess said in its filing that it seeks to have the merits of the arbitration heard by the third quarter of 2024 and complete the arbitration by the end of the year.
Neither Chevron nor Hess can predict the date on which the transaction will be completed, Hess said in its filing.
On Friday, Hess and Exxon gave a financial go-ahead to a sixth oil project in Guyana. The project would add 250,000 barrels per day of production by the end of 2027, the companies said.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shailesh Kuber)