ExxonMobil respects ICC ruling on Hess dispute, defends preemption stance, welcomes Chevron, and reaffirms commitment to Guyana project success.
ExxonMobil Corporation has issued a formal response following a recent decision by the International Chamber of Commerce (ICC) Tribunal concerning a contractual disagreement with Hess Corporation. The dispute revolved around ExxonMobil’s and CNOOC’s preemption rights related to Hess’s proposed sale of its stake in the Stabroek Block offshore Guyana.
In its statement, ExxonMobil expressed disagreement with the interpretation adopted by the ICC arbitration panel. However, the company emphasized that it respects the arbitration and dispute resolution process, acknowledging its importance in upholding international contractual standards. ExxonMobil reiterated its long-standing position that the company, along with its partner CNOOC, had a responsibility to ensure the sanctity and enforcement of the contract terms originally agreed upon. They stated that maintaining these terms was critical not only for their operations but also to avoid setting a concerning precedent within the broader energy industry.
The company underlined the immense value it has generated through the development of the Stabroek Block, highlighting that this success was built on years of strategic planning, advanced technological implementation, and significant financial risk undertaken at a time when the potential of the project was still uncertain. Given this background, ExxonMobil argued that it had a fiduciary duty to its shareholders to explore the option of exercising preemption rights. These rights were seen as a mechanism to protect the company’s substantial investment and innovation that played a pivotal role in the success of Guyana’s offshore oil development.
Despite the arbitration ruling not favoring its stance, ExxonMobil conveyed a forward-looking and collaborative tone in its statement. The company welcomed Chevron’s entry into the joint venture and expressed optimism about the future of the Guyana project. ExxonMobil noted that it remains committed to delivering industry-leading performance and generating sustainable value for all stakeholders involved, including its partners, shareholders, and the people of Guyana.
The company concluded by affirming its dedication to upholding high standards in its operations and ensuring the long-term success of the Stabroek Block. ExxonMobil’s response reflects a blend of legal respect for the arbitration outcome and a continued strategic focus on value creation and operational excellence in one of the world’s most promising offshore oil fields.
ExxonMobil, a leading publicly traded global energy and petrochemical company, is dedicated to delivering innovative solutions that enhance quality of life while addressing the world’s changing needs. The company operates through three core business segments—Upstream, Product Solutions, and Low Carbon Solutions—offering essential products such as energy, chemicals, lubricants, and technologies aimed at reducing emissions.
With a robust and diversified resource portfolio, ExxonMobil stands among the largest integrated companies globally in the production of fuels, lubricants, and chemicals. It also operates the most extensive carbon dioxide (CO2) pipeline system in the United States, reinforcing its leadership in emissions management and infrastructure.
