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Friday, August 22, 2025

International tribunal rules in favour of Chevron in high stakes oil dispute in Guyana

by

GUARDIAN MEDIA NEWSROOM
35 days ago
20250718
The International Chamber of Commerce (ICC) Paris headquarters. [Image courtesy ICC official website]

The International Chamber of Commerce (ICC) Paris headquarters. [Image courtesy ICC official website]

International Chamber of Commerce

The Paris-based In­ter­na­tion­al Cham­ber of Com­merce (ICC) gave the green light on Fri­day to the US-based oil com­pa­ny, Chevron, to buy in­to one of the world’s most valu­able oil de­vel­op­ments in the Caribbean coun­try of Guyana, which holds more than 11 bil­lion bar­rels of oil and is con­sid­ered one of the most lu­cra­tive and fastest grow­ing in the world.

The rul­ing means that Chevron—Amer­i­ca’s sec­ond-largest oil com­pa­ny—can move for­ward with its ac­qui­si­tion of a small­er ri­val, Hess, for US$53 bil­lion af­ter a two-year wait to close the deal.

En­er­gy ob­servers said Chevron’s ac­qui­si­tion means that the com­pa­ny now gets a piece of a lu­cra­tive oil project off the shores of Guyana.

Chevron al­so gains an ar­ray of oth­er as­sets—from North Dako­ta to South­east Asia—that will ex­tend the com­pa­ny’s run­way of drilling op­por­tu­ni­ties and give it the abil­i­ty to bet­ter com­pete with the likes of Exxon, its larg­er U.S. ri­val.

Exxon and Chevron have been fight­ing over Hess’ stake in Guyana for more than a year, in a dis­pute root­ed in the fine print of a con­tract that has nev­er been made pub­lic.

“We wel­come Chevron to the ven­ture and look for­ward to con­tin­ued in­dus­try-lead­ing per­for­mance and val­ue cre­ation in Guyana for all par­ties in­volved,” an Exxon spokesman said in a state­ment.

The Guyana de­vel­op­ment is a part­ner­ship be­tween three com­pa­nies. Exxon op­er­ates the project and holds the largest stake of 45 per cent, fol­lowed by Hess 30 per cent, and CNOOC (a Chi­nese state-owned oil com­pa­ny) with 25 per cent.

The In­ter­na­tion­al En­er­gy Agency (IEA) said the project is con­sid­ered one of the most promis­ing in the world, and is ex­pect­ed to sin­gle-hand­ed­ly pro­duce around one per cent of the world’s oil with­in a few years. —PARIS (CMC)


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