Exxon desires to maintain choice for Hess Guyana belongings, CEO says

(This Dec. 11 story has been corrected to say that the aim is to maintain the choice open if Hess arbitration succeeds, within the headline and paragraph 1)

HOUSTON (Reuters) – Exxon Mobil (NYSE:XOM) desires to protect its proper of first refusal in Hess Corp (NYSE:HES)’s sale of its Guyana oil manufacturing belongings due to the work it has put into creating the nation’s offshore fields, two of its high executives mentioned on Wednesday.

A 3-person panel in Might is to determine whether or not Hess’s deal to promote itself to Chevron (NYSE:CVX) can go forward on its authentic phrases. A problem by Exxon and CNOOC (NYSE:CEO) Ltd has stalled the second-largest deal in a current wave of oil megamergers.

“We developed the worth of that asset. We now have the precise to contemplate the worth of that asset on this transaction, after which the precise to take an choice on it,” Exxon CEO Darren Woods advised Wall Road analysts in his most important feedback on the arbitration case up to now. “We now have a chance, as does CNOOC, the opposite accomplice, to take part in that chance to have the precise of first refusal.”

Representatives for Hess and Chevron declined to remark.

Analysts have put the worth of Hess Guyana at between 60% to 80% of Chevron’s proposed $53 billion buy of Hess. The three way partnership has found greater than 11 billion barrels of oil up to now.

The proposed sale ignores a three way partnership settlement that grants the precise of first refusal to any sale of a Guyana accomplice’s stake, Exxon and CNOOC preserve.

The 2 firms beforehand have rejected the declare, arguing the deal is structured as a merger and Hess’s Guyana holdings stay intact. Hess has mentioned if the Chevron deal isn’t concluded it might not individually promote its Guyana properties to Exxon or anybody else.

Woods disregarded Hess’s view of a loss at arbitration souring a sale, saying “that is their assemble, not ours.”

Exxon desires the three-person arbitration panel to contemplate the worth of Hess Guyana as a part of the deliberations.

“We’ll take a look at the worth and see if that worth is in one of the best curiosity of the corporate, the company and the shareholders,” added Exxon Vice Chairman Neil Chapman.