$53B Acquisition Grants Access to Guyana Oil Reserves
Chevron has finalized its $53 billion all-stock acquisition of Hess, securing access to one of the most valuable oil discoveries in decades. The International Chamber of Commerce ruled in Chevron’s favor, effectively ending a prolonged dispute with ExxonMobil over Hess’ 30% stake in the Stabroek oil block off Guyana’s coast.
The offshore block, estimated to contain over 11 billion barrels of recoverable oil, has transformed Guyana into the world’s second-fastest-growing economy. Chevron’s acquisition now grants it a strategic position alongside Exxon (45%) and China’s CNOOC (25%) in the venture.
End of a Legal Standoff With ExxonMobil
Exxon and CNOOC had argued that their joint operating agreement gave them a preemptive right to match Chevron’s bid. However, the arbitration panel ruled otherwise, allowing Chevron to proceed with the merger. Exxon, while expressing disagreement, stated it respected the ruling.
Exxon had partnered with Hess since 2014, and the ruling marks the end of a nearly two-year corporate power struggle. Legal experts see this as a landmark decision that clarifies limits around asset-level rights in corporate-level M&A transactions.
Strategic Win for Chevron Amid Lagging Performance
Chevron has trailed Exxon in both financial performance and market valuation in recent years. Its earnings dropped from $24.7 billion in 2023 to $18.3 billion in 2024, and it announced plans to cut 20% of its workforce by the end of 2025. In contrast, Exxon’s stock has nearly doubled in five years, while Chevron’s rose 71% and the S&P 500 gained 95%.
The deal is expected to provide Chevron with significant free cash flow and production growth well into the 2030s. Analysts from Bank of America described it as transformative, offering geographic diversification and improved leverage in other key markets such as Kazakhstan.
Implications for the Energy Sector and Future Deals
Chevron’s acquisition is the second-largest energy M&A deal in recent years, just behind Exxon’s $60 billion purchase of Pioneer Natural Resources. So far, over $150 billion in energy sector deals have been recorded in 2025, according to PwC.
Experts say large-scale mergers like this one often catalyze further activity, prompting other energy firms to assess strategic acquisitions. As the global energy industry evolves, particularly to power AI infrastructure, competition for key resources is expected to intensify.