Bloomberg News: Chevron and Hess CEO agree that Hess will not be joining the board of directors in a deal with US regulator

Bloomberg News, citing sources familiar with the situation, reported that U.S. Energy Major Chevron agreed with U.S. Federal Trade Commission Hess CEO John Hess would not join its board as part of an agreement to proceed with a $53 billion acquisition deal.

The proposed acquisition of all stock, announced first in October, is the largest in the U.S. Oil and Gas industry. It's the latest in a series of multi-billion-dollar deals. Chevron Hess, and the FTC have not responded to requests for comment. Chevron must still win Exxon Mobil's arbitration case filed over Hess stake in Guyana oilfield, a prized asset in the proposed merge. Exxon Mobil and CNOOC Ltd., Hess' joint venture partners, have challenged the deal, claiming the right of first refusal for any sale of Guyana assets. Hess holds 30% of the giant Stabroek Block in Guyana, operated by Exxon. Exxon owns 45%. CNOOC Ltd., a Chinese company, holds the remaining 25 percent. By 2027, the companies plan to double their production to 1.3 millions barrels of gas and oil per day. (Reporting and editing by Anil D’Silva, Krishna Chandra Eluri and Sourasis BOSE in Bengaluru)

(source: Reuters)