ExxonMobil executive: will be ‘business as usual’ if company loses Guyana arbitration

Though ExxonMobil believes it will win its Guyana-related arbitration against Chevron and Hess, it will be “business as usual” if the company loses its case, an executive for the US supermajor said Thursday.
“You know, we’re confident the judges will go in our favour, but if they don’t, and Chevron can purchase Hess, Chevron becomes a partner instead of Hess, no change for us. It’s no change at all. It’s just business as usual,” ExxonMobil senior vice president Neil Chapman said at Berstein’s 41st annual Strategic Decisions Conference.
ExxonMobil, which operates the prolific Stabroek block offshore Guyana with a 45% stake, launched arbitration proceedings last year over Hess’ 30% interest in the field, which is the centre of Chevron’s attempted US$53 billion takeover of Hess. CNOOC International, which owns the remaining 25% stake, also filed an arbitration claim that was eventually merged with ExxonMobil’s case.
ExxonMobil and CNOOC International believe “very, very strongly that we have the right of first refusal” to the Stabroek stake, Chapman said.
“In other words, we can match a purchase price. That’s typical in the industry. Obviously, Hess and Chevron have a different view.”
Chapman acknowledged that a hearing in front of three judges at the International Chamber of Commerce “has just taken place”, indirectly confirming a Reuters report that the session was held Monday.
However, he said the hearing was akin to a “conclusion of a whole series of submissions” that wrapped this week.
“I don’t know exactly when they’ll come to a decision. All I can tell you is the typical timeline of the arbitration in that court is two to three months,” he said.
Despite the tension, Chapman said Hess has been a “very, very good partner” in Guyana.
“And I would tell you, we have partnerships with Chevron all over the world. There’s been no change in terms of how we’re working together at all,” he said. (upstreamonline.com)