Hess CEO will consider appealing FTC board seat ban in the future

Hess' CEO said that he will consider appealing to the Federal Trade Commission the ban on his taking a Chevron Board seat once the Trump Administration takes office.

In September, the FTC barred John Hess's participation on Chevron’s board of directors as part a consent order allowing the proposed acquisition. Exxon Mobil, CNOOC and Hess's partners in the Guyana joint venture have challenged Hess over a contract arbitrage. The $53 billion acquisition has been delayed.

The FTC imposed a ban citing his communication with the oil producer's group OPEC in its efforts to reduce production.

Hess said in his first comments made since the FTC's order that he, along with Chevron, accepted the conditions to obtain the approval needed for the combination. He was responding to a query about why he hadn't appealed the FTC decision.

We will consider this with a new administration. Hess stated at the Wolfe Research Oil and Gas Conference that "right now we are focused on integration".

John Rielly, CFO of Hess, responded separately to a question about a possible dividend increase as the merger was delayed. He said that this is an area within the agreement which requires Chevron’s approval.

He said that Hess was prohibited by the merger agreement from making large capital expenditures and acquisitions without Chevron’s approval.

Hess also expressed optimism about the global oil demand, expecting it to increase by 1 million barrels a day per year through 2030.

Brent oil is expected to be traded between $70-$80 per barrel by 2025, according to the veteran oil executive.

Hess responded that "we'll stick with the joint venture plan which is by the end 2025."

Hess said, however, that he would "side" with the July start date if Exxon’s record of starting projects on time and within budget was taken into account.

(source: Reuters)