Exxon Mobil indicated Wednesday it could make a bid for Hess' oil assets in Guyana if the company's merger agreement with Chevron fails due to a dispute over pre-emption rights.
Exxon filed for arbitration at the International Chamber of Commerce in Paris Wednesday morning to adjudicate the dispute with Chevron over Hess' Guyana assets, Exxon senior vice president Neil Chapman said during an interview at a Morgan Stanley event.
"We are extremely confident in our position that pre-emption rights exist in this contract, and we fully intend on ensuring that we preserve those pre-emption rights," Chapman said.
Chevron entered an agreement in October to purchase Hess for $53 billion, in a play to gain a foothold in Guyana's massive offshore oil assets.
The oil major has said Exxon's pre-emption rights under the joint operating agreement do not apply to its pending merger with Hess.
Persons:
Hess, Neil Chapman, Morgan Stanley, Chapman
Organizations:
Exxon Mobil, Chevron, Exxon, International Chamber of Commerce, Hess
Locations:
Guyana, Paris, Hess