Exxon CEO: We want to extract value from Hess Guyana's assets

Two of Exxon Mobil's top executives stated on Wednesday that they wanted to "participate in" Hess Corp. selling its Guyana oil assets and extract value from its work developing the country offshore fields.

In May, a three-person panel will decide whether Hess can proceed with its deal to sell to Chevron on the original terms. Exxon and CNOOC Ltd have challenged the deal, which is the second largest in recent oil megamergers.

"We calculated the value of this asset." Exxon CEO Darren Woods said to Wall Street analysts that we have the right, in this transaction to take into consideration the value of the asset and then to exercise an option on it. "We, and CNOOC, our other partner, have the opportunity to participate in this opportunity to have the first refusal."

Hess and Chevron representatives declined to comment.

Analysts estimate that Hess Guyana is worth between 60% and 80% of Chevron’s proposed purchase of Hess for $53 billion. The joint venture discovered over 11 billion barrels worth of oil so far.

Exxon, CNOOC and others claim that the proposed sale is in violation of a joint-venture agreement which grants a partner of Guyana the right to first refusal on any sale.

Both companies have previously rejected this claim. They argued that the deal was structured as a fusion and Hess’s Guyana holdings remained intact. Hess said that if the Chevron agreement is not completed, it will not sell its Guyana holdings to Exxon.

Woods dismissed Hess’s claim that a loss in arbitration could ruin a deal, saying, "that’s their conception, not ours."

Exxon asks that the arbitral panel of three people considers the value of Hess Guyana in its deliberations.

Neil Chapman, Exxon's Vice Chairman, said: "We will look at the value to see if it is in the interest of the company and its shareholders." (Reporting and Editing by Keith Weir, Anna Driver, and Gary McWilliams)

(source: Reuters)