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Chevron warns of threat to $53bn Hess deal from ExxonMobil

US’s biggest supermajor and China’s Cnooc highlight right of first refusal in Guyana project stake central to acquisition

Chevron has warned that its planned $53bn acquisition of Hess could be thwarted by rivals ExxonMobil and China National Offshore Oil Corporation, which are asserting their right to pre-empt its purchase of a stake in a Guyana oil project that is central to the deal.

The second-biggest US oil company said it had been “engaged in discussions” with Exxon and Cnooc — joint owners of the Stabroek Block project — “regarding a right of first refusal provision in the joint operating agreement” for the development, Chevron said in a regulatory filing on Monday.

If the talks did not “result in an acceptable resolution”, or if any subsequent arbitration did not confirm its belief that the right of first refusal did not apply in this case, Chevron said the takeover of Hess would not close. 

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