So DWW wants a fight with Chevron over the Hess Guyana interest. Never have I wanted Chevron to f us more. Darren’s compete to win is going to turn us against our partners elsewhere in the world and Darren’s ruthless focus on cost cutting will turn us into the next Boeing. Sad that I feel this way after being a loyal EM employee
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The Guyana JOA was based on the AIEN Model JOA from 2002, which includes Change in control language in Article 12.3. AIEN included CIC language to address the "merger" issue. XOM and CNOOC would not be going to arbitration if the Pref Right was not being triggered by the CIC clause, and Hess must comply with the procedure. Any JOA in the industry which was executed after the 2002 AIEN Model contract was developed would have CIC language in addition to "transfer" language. This clause was developed because of the pref right problems which occurred in the late 1990 merger wave. This clause is widely available for anyone to read because it is standard practice.
Joint Operating Agreements always contain a clause about right of first refusal and historically have been interpreted to apply to asset sales not whole company sales. DW is going out on a limb with this one-intetested to see the outcome. Probably should have just drilled Liza-1 ourselves for 100%. As a shareholder it ticks me off that he is using my money to fight to acquire what we already had and pay a premium to get it back. As far as Chevron's execution-we are the operator and we have the backing of CNOOC so Chevron will just go along. Just shareholders paying for poor decision 10 years ago. Kinda like the Pioneet acquisition.
Need to lean in... FFS.
This is a terrible take. Why let Chevron ride our coattails in Guyana with their continued poor execution on operated projects, especially those we have joint-interest in such as Tengiz and Gorgon? Notice CNOOC also filed for arbitration…this is bigger than bullying Chevron.
Love it - F Chevron
https://www.bloomberg.com/news/articles/2024-03-22/exxon-confident-its-intent-in-writing-guyana-contract-to-prevail
As arbitration between ExxonMobil and Chevron over Guyana looms, Exxon leans into "what was intended" by the joint operating agreement signed a decade ago.
“We certainly have strong feelings that we’re right,” Exxon SVP Jack Williams tells Michael Hirtzer. Chevron “has strong feelings they’re right as well, so it’ll be an interesting arbitration."
“But we did write it, so we have a view of what was intended.”