US FTC to delay decision on Chevron-Hess deal during Exxon arbitration, Bloomberg reports

(Reuters) -The U.S. Federal Trade Commission plans to delay its decision on whether to block Chevron (NYSE:)’s $53 billion takeover of Hess (NYSE:) until after an arbitration case with Exxon Mobil (NYSE:) is settled, Bloomberg News reported on Thursday, citing unnamed sources.

The deal, which was initially planned to close in the first half of the year, had already stalled after Exxon in March filed for arbitration, claiming a right of first refusal over Hess’ valuable assets in Guyana.

Hess still expects to complete the FTC review process in the third quarter, the company said in a note. Chevron declined to comment.

A three-member panel has not yet begun work on a review of Exxon’s claim of preemption rights to acquire Hess’s Guyana assets. It is expected to set a schedule for proceedings in the coming weeks.

Hess owns a 30% stake in Guyana’s giant Stabroek block operated by Exxon, which has a 45% stake. China’s CNOOC (NYSE:) Ltd holds the remaining 25%. The companies expect to double production to 1.3 million barrels of oil and gas per day by 2027.

“The arbitration is moving forward and we expect to have a decision by the end of 2024,” Hess said on June 19. Exxon has signaled the arbitration process would extend into 2025.