
How one clause sparked Exxon-Chevron feud that turned personal
(Bloomberg) — The 20-month feud between the Western Hemisphere's two most powerful oil companies over the biggest offshore discovery in a generation hinged on a single clause of a contract few people have ever seen.
Article content
The passage in a confidential agreement signed more than a decade ago that governs how producers work together in Guyana's booming oil field was the basis for Exxon Mobil Corp.'s arbitration case that threatened to undo Chevron Corp.'s $53 billion takeover of Hess Corp.
Article content
Article content
Article content
The ensuing dispute upended Chevron's and Hess's strategies for nearly two years and threatened to mar the legacies of both companies' CEOs. The story behind how it unfolded shows how American oil executives' usual cordial relationships were pushed to the breaking point when a $1 trillion discovery was at stake.
Article content
Article content
'It should have been resolved much quicker,' Chevron CEO Mike Wirth said in an interview Friday. 'This was a straightforward, plain reading of a contract.'
Article content
'We had a clear duty to our investors to consider our preemption rights to protect the value we created,' the company said in a statement. 'We welcome Chevron to the venture.'
The following account is based on Bloomberg reporting over nearly two years, including on- and off-the-record conversations with more than two dozen analysts, fund managers, traders and current and former company employees.
Article content
Article content
It began toward the end of 2023, when the US oil industry was basking in the aftermath of the price surge caused by Russia's invasion of Ukraine. In a blow to the clean-energy transition, the war had underscored the continued importance of fossil fuels and furnished producers with record profits.
Article content
Keen to take advantage, US executives embarked on a corporate takeover spree that would reach nearly $500 billion over just three years. Exxon scored the biggest of them, buying Pioneer Natural Resources Co. for $60 billion in October 2023.
Article content
Not to be outdone, Chevron announced an agreement to buy Hess for $53 billion less than two weeks later. Hess's minority stake in Guyana's massive Stabroek Block was 'the industry's most attractive, long-lived growth asset' Wirth said on the day of the announcement. It was high praise for a project discovered and operated by its arch-rival, Exxon.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Global News
an hour ago
- Global News
U.S. raises anti-dumping duties on softwood lumber above 20%
British Columbia lumber organizations are condemning the decision by the U.S. Commerce Department to raise anti-dumping duties on Canadian softwood lumber to 20.56 per cent, calling them unjustified, punitive and protectionist. The B.C. Council of Forest Industries issued a statement Friday saying the trade action will harm workers, families and communities across the province and Canada. The council is calling on the Canadian government to make finding a resolution to the softwood dispute a top national priority, saying the latest escalation from the Commerce Department shows they can't wait for the United States to act. The B.C. Lumber Trade Council says in a separate statement that if the U.S. department's pending review on countervailing duties is in line with its preliminary results, the combined rate against Canadian softwood shipped to the United States will be well over 30 per cent. Story continues below advertisement Prime Minister Mark Carney said earlier this month that a future trade agreement with the United States could include quotas on softwood lumber, an area that has caused friction between two countries for years before the latest trade war. 0:36 U.S. tariffs on softwood lumber 'unjustified' and 'fundamentally misguided': Carney The American department had issued a preliminary anti-dumping rate in March of 20.07 per cent, up from 7.66 per cent set three years before, which is in addition to the countervailing duties of 6.74 per cent. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'This decision represents yet another example of ongoing U.S. protectionism at a time when cross-border co-operation should be a shared priority,' the statement from the B.C. Lumber Trade Council said. The B.C. Council of Forest Industries said the provincial government could make a number of changes that would help the industry keep mills operating. By activating timber sales, fast-tracking permits and cutting through regulatory gridlock, it said B.C. could send a signal that it is serious about rebuilding a sustainable forest sector. Story continues below advertisement 'These unjustified and punitive trade actions continue to harm workers, families, and communities across British Columbia and Canada — and have gone unresolved for far too long,' the statement from the council said.


National Observer
an hour ago
- National Observer
US imposing 20.56% anti-dumping duties on Canadian softwood
British Columbia lumber organizations are condemning the decision by the U.S. Commerce Department to raise anti-dumping duties on Canadian softwood to 20.56 per cent, calling them unjustified, punitive and protectionist. The B.C. Council of Forest Industries issued a statement Friday saying the trade action will harm workers, families and communities across the province and Canada. The council is calling on the Canadian government to make finding a resolution to the softwood dispute a top national priority, saying the latest escalation from the Commerce Department shows they can't wait for the United States to act. The B.C. Lumber Trade Council says in a separate statement that if the U.S. department's pending review on countervailing duties is in line with its preliminary results, the combined rate against Canadian softwood shipped to the United States will be well over 30 per cent. Prime Minister Mark Carney said earlier this month that a future trade agreement with the United States could include quotas on softwood lumber, an area that has caused friction between two countries for years before the latest trade war. The American department had issued a preliminary anti-dumping rate in March of 20.07 per cent, up from 7.66 per cent set three years before, which is in addition to the countervailing duties of 6.74 per cent. "This decision represents yet another example of ongoing U.S. protectionism at a time when cross-border co-operation should be a shared priority," the statement from the B.C. Lumber Trade Council said. The B.C. Council of Forest Industries said the provincial government could make a number of changes that would help the industry keep mills operating. By activating timber sales, fast-tracking permits and cutting through regulatory gridlock, it said B.C. could send a signal that it is serious about rebuilding a sustainable forest sector. "These unjustified and punitive trade actions continue to harm workers, families, and communities across British Columbia and Canada — and have gone unresolved for far too long," the statement from the council said.


Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
U.S. imposing 20.56% anti-dumping duties on Canadian softwood
VANCOUVER – British Columbia lumber organizations are condemning the decision by the U.S. Commerce Department to raise anti-dumping duties on Canadian softwood to 20.56 per cent, calling them unjustified, punitive and protectionist. The B.C. Council of Forest Industries issued a statement Friday saying the trade action will harm workers, families and communities across the province and Canada. The council is calling on the Canadian government to make finding a resolution to the softwood dispute a top national priority, saying the latest escalation from the Commerce Department shows they can't wait for the United States to act. The B.C. Lumber Trade Council says in a separate statement that if the U.S. department's pending review on countervailing duties is in line with its preliminary results, the combined rate against Canadian softwood shipped to the United States will be well over 30 per cent. Prime Minister Mark Carney said earlier this month that a future trade agreement with the United States could include quotas on softwood lumber, an area that has caused friction between two countries for years before the latest trade war. The American department had issued a preliminary anti-dumping rate in March of 20.07 per cent, up from 7.66 per cent set three years before, which is in addition to the countervailing duties of 6.74 per cent. Wednesdays What's next in arts, life and pop culture. 'This decision represents yet another example of ongoing U.S. protectionism at a time when cross-border co-operation should be a shared priority,' the statement from the B.C. Lumber Trade Council said. The B.C. Council of Forest Industries said the provincial government could make a number of changes that would help the industry keep mills operating. By activating timber sales, fast-tracking permits and cutting through regulatory gridlock, it said B.C. could send a signal that it is serious about rebuilding a sustainable forest sector. 'These unjustified and punitive trade actions continue to harm workers, families, and communities across British Columbia and Canada — and have gone unresolved for far too long,' the statement from the council said. This report by The Canadian Press was first published July 25, 2025.