Sources say that the FTC is set to approve chevron’s purchase of Hess for $53 billion, according to sources.

Two people with knowledge of the matter say that the U.S. Federal Trade Commission will likely approve the purchase by U.S. oil company Chevron of Hess this week. Exxon Mobil is the last hurdle to clear.

The merger proposal was announced in October last year. Two months later, the FTC sent Chevron a second request for information. Chevron's shares have fallen 1% in value this year due to uncertainty over the closing of the deal, compared with a 6.5% rise in energy share fund XLE.

Exxon, CNOOC Ltd., Hess’s partners in the joint venture in Guyana, have challenged the deal, claiming the right of first refusal on any sale of Hess’s Guyana assets. This is the prize of the proposed merger.

In May 2025, a three-judge arbitral panel will consider the case. Chevron, Hess and Exxon say they expect a decision by August 2025.

A dispute over the terms of the partnership contract between Exxon, CNOOC and Hess stalls the closing of any deals in the second half 2025. The Guyana consortium is in control of one of the fastest-growing and most lucrative oil provinces on earth, with 11.6 billion barrels discovered since 2015.

Exxon is the sole producer in Guyana. It has a 45% share in an offshore oil consortium, with Hess as a minority partner and China's CNOOC as a majority partner. The combined earnings of the three companies from Guyana were $6.33 billion last year on revenue of $11.25 billion.

CTFN, an information and data provider for financial professionals, first published the information. (Reporting and writing by Sabrina Valle, Jody Godoy, Gary McWilliams, editing by Margueritachoy)

(source: Reuters)