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Exxon Mobil (NYSE:XOM) said Monday it has a duty to shareholders to explore the right of first refusal over the change of ownership of Hess’ (HES) stake in Guyana’s offshore oil project.
“We owe it to our investors and partners to consider our pre-emption rights in place under our Joint Operating Agreement to ensure we preserve our right to realize the significant value we’ve created and are entitled to in the Guyana asset,” Exxon (XOM) said in a statement, according to Bloomberg.
Chevron (CVX) said it remains fully committed to its proposed $53B deal for Hess (HES), which would include a 30% stake in the Exxon-led (XOM) consortium in Guyana, which is one of the world’s largest oil discoveries of recent years.
Chevron (CVX) told Bloomberg that Exxon (XOM) and Cnooc’s (OTCPK:CEOHF) right of first refusal is “not applicable” to its merger with Hess (HES): “As described in the S-4, there is no possible scenario in which Exxon or Cnooc could acquire Hess’ interest in Guyana as a result of the Chevron-Hess transaction.”
Even so, the company warned in the filing of a risk that the Hess (HES) purchase may not be completed if Exxon (XOM) and Cnooc (OTCPK:CEOHF) launch a successful counterbid.