Correction Notice

(This Dec. 11 story has been corrected to change the title to Senior Vice President, not Vice Chairman, in paragraph 10)

Exxon Mobil Seeks First Refusal on Hess Corp's Sale of Guyana Assets

HOUSTON (Reuters) – Exxon Mobil (NYSE:XOM) wants to preserve its right of first refusal in Hess Corp (NYSE:HES)'s sale of its Guyana oil production assets due to the extensive work it has undertaken in developing the country's offshore fields, as stated by two of its top executives on Wednesday.

A three-person panel is set to decide in May whether Hess's deal to sell itself to Chevron (NYSE:CVX) can proceed on its original terms. A challenge from Exxon and CNOOC (NYSE:CEO) Ltd has halted the second-largest deal in a recent wave of oil megamergers.

Exxon CEO Darren Woods emphasized, "We developed the value of that asset. We have the right to consider the value of that asset in this transaction, and then the right to take an option on it." He reiterated that both Exxon and CNOOC have the opportunity to assert their right of first refusal.

Representatives from Hess and Chevron have refrained from commenting on the matter.

Analysts estimate that the value of Hess's Guyana assets could account for 60% to 80% of Chevron's proposed $53 billion acquisition of Hess. The joint venture has already discovered over 11 billion barrels of oil to date.

Exxon and CNOOC assert that the proposed sale disregards a joint venture agreement that affords the right of first refusal to any sale of a Guyana partner's stake. In contrast, the two companies have previously rejected Hess's claims, arguing that the deal is structured as a merger and Hess's Guyana holdings remain intact. Hess has indicated that if the Chevron deal is unsuccessful, it will not separately sell its Guyana assets to Exxon or any other entity.

Woods dismissed Hess's concern that an adverse arbitration outcome could jeopardize the sale, claiming, "that's their construct, not ours."

Exxon is urging the arbitration panel to evaluate the value of Hess Guyana during its deliberations. "We'll look at the value and see if that value is in the best interest of the company, the corporation, and the shareholders," added Exxon Senior Vice President Neil Chapman.