(Ecofin Agency) – The American oil company Chevron announced, at the end of October 2023, its plan to acquire its compatriot Hess Corporation for $53 billion. The operation is still awaiting finalization.
The American oil company Chevron wishes to materialize the proposed takeover of its compatriot Hess Corporation announced in October, but since blocked due to a dispute over contractual issues and pre-emption rights, raised by ExxonMobil.
While participating in the Goldman Sachs Global Energy, Clean Technologies & Utilities Conference held Tuesday January 7 and Wednesday January 8, John Hess, the boss of Hess, spoke about the possibilities of completing this project in the coming months .
“We are convinced that the merger will happen and we are preparing for it”declared the official while an arbitration decision is expected for the month of September. So the success of the deal that promises a $6 billion to $8 billion increase in Chevron’s free cash flow by next year, as well as a multibillion-dollar cost reduction, depends on this decision arbitration.
Beyond the legal aspect of this dispute, it is in reality a commercial battle between ExxonMobil and Chevron, the latter seeing in the acquisition of Hess an opportunity to catch up or even overtake its competitor on the American oil and gas market. .
The outcome of this competition between heavyweights in the oil and gas industry in the United States could, if it benefits Chevron, have an impact on its operations in Africa in a context where the company is redefining its crude oil research policy. across the continent. This, in particular by focusing on areas considered rich in hydrocarbons, but under-explored.
Abdel-Latif Boureima
Edited by Wilfred ASSOGBA
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10/23/2023 – Chevron wants to buy Hess for $53 billion
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