The U.S. Federal Trade Commission (FTC) has approved Chevron’s $53 billion acquisition of Hess Corp, with one key stipulation—Hess CEO John Hess will not be allowed to join Chevron’s board. The FTC raised concerns about Hess’s prior communications with OPEC, suggesting his presence on Chevron’s board could lead to the alignment of production strategies with the cartel, potentially affecting oil prices. This decision leaves a legal challenge from Exxon Mobil as the final obstacle to closing the deal.
Hess Corp has rejected the FTC’s claims, stating that John Hess’s communications with OPEC officials were consistent with his discussions with U.S. government bodies and global energy leaders on managing a sustainable energy transition. Despite the setback, Chevron CEO Mike Wirth expressed respect for Hess’s leadership and contributions to the industry, while expressing disappointment over his exclusion from the board.
The deal still faces a challenge from Exxon Mobil and CNOOC, partners in Hess’s joint venture in Guyana, who have invoked a right of first refusal on Hess’s Guyanese assets. The case is scheduled for arbitration in May 2025, with a final decision expected by late summer. Once resolved, the acquisition could further strengthen Chevron’s presence in the lucrative Guyana oil fields and cement its leadership in the global energy market.
