Chevron will increase its oil production capacity by acquiring Hess

Energy Daily - US energy company Chevron acquired Hess Corporation in a $55 billion deal on July 18, 2025. The acquisition gave Chevron a 30% stake in the Stabroek Block in Guyana and supported the company's goal of increasing its reserves and production capacity.

Chevron's entry into Guyana's rich offshore oil fields is seen as a critical move in the company's long-term growth strategy. It will strengthen Chevron's global oil production capacity while increasing competition with fellow US energy company ExxonMobil.

One of the most important oil discoveries of the last decade

Guyana's Stabroek Block is considered one of the most significant oil discoveries of the past decade, with reserves exceeding 11 billion barrels of oil equivalent. The block is operated by ExxonMobil (45%), Hess (30%), and China National Offshore Oil Corporation (CNOOC, 25%). Chevron gained access to this high-potential field by acquiring Hess's share.

2-YEAR DELAY

Chevron announced its intention to acquire Hess Corporation in a $53 billion all-stock deal in October 2023. However, ExxonMobil and CNOOC filed an arbitration lawsuit with the International Chamber of Commerce (ICC), claiming a right of first refusal for Hess's 30% stake in the Stabroek Block. On July 18, 2025, the ICC ruled in favor of Chevron and dismissed ExxonMobil's appeal. This process delayed the closing of the deal by approximately two years.