The U.S. Federal Trade Commission (FTC) has approved Chevron’s $53 billion acquisition of Hess Corp, but has imposed a significant condition: Hess CEO John Hess is barred from joining Chevron’s board. This decision marks a crucial step in the merger process, which still faces scrutiny from Exxon Mobil, challenging the deal based on rights over Hess’s assets in Guyana.
Chevron’s Chairman and CEO, Mike Wirth, expressed regret over the FTC’s decision regarding John Hess, emphasizing his respect for Hess and the value he brings to the industry. The FTC’s concerns stem from allegations that Hess had engaged with OPEC members, suggesting that his presence on Chevron’s board could lead to alignment with OPEC production decisions, potentially influencing global oil prices.
Hess Corp has refuted these claims, arguing that Hess’s communications were consistent with broader discussions involving various stakeholders. The FTC aims to ensure that U.S. oil producers maintain independence from OPEC influences.
The merger’s approval is not yet final, as it must overcome legal challenges from Exxon Mobil and CNOOC Ltd, who assert rights to Hess’s Guyana assets. An arbitration panel is expected to address these claims in May 2025.
Despite the board exclusion, John Hess will still be allowed to advise Chevron on matters related to the Guyanese government.