Chevron has secured its $53 billion acquisition of Hess, defeating Exxon in its yearslong attempt to block the deal and gaining control of an oilfield of major geopolitical importance.

The oil major announced on Friday that it completed the acquisition of Hess after an arbitration panel with the International Chamber of Commerce dismissed Exxon’s claim that it had the right to preempt the bid for Hess’s coveted assets in the offshore Guyana oilfields. 

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Chevron first announced the deal, which includes Hess’s stake in the Stabroek Block oilfield off the coast of Guyana, in 2023, though Exxon has held it up in the courts since, saying that the arrangement would infringe on its own operations in the region. 

Exxon holds a 45% stake in the Guyana project that supports the production of around 650,000 barrels of crude per day, according to the Wall Street Journal. 

Its attempt to block the deal was also supported by Chinese state-owned oil giant Cnooc, which holds a 25% stake. Hess had held the largest stake in the Guyana oil development after Exxon. 

Exxon said it disagreed with the ICC’s decision, but noted that it respects the arbitration process. 

“As we’ve said before, ExxonMobil and CNOOC are aligned that we had a duty to ensure contract terms are always adhered to and not set a bad precedent for ourselves and industry,” the company said. 

It noted that given the value Exxon has created in developing its Guyana resources, the company had a “duty” to investors to consider its preemption rights in the case. 

Chevron celebrated the deal on Friday, with chairman and CEO Mike Wirth saying it would drive “greater long-term value” to its shareholders. 

“This merger of two great American companies brings together the best in the industry,” Wirth said. 

The oil project is considered to be one of the most promising regions globally for increased production, as it is estimated to contain 11 billion barrels of crude. 

Its possible riches have not only attracted the attention of oil majors such as Chevron, but that of Venezuela, which sits directly east of Guyana. 

Venezuela has since made new claims to parts of Guyana, including its rich oil fields, renewing a centuries-old feud over land and maritime borders between the two countries. 

As recently as May, an armed Venezuelan naval vessel sailed off the coast of Guyana, in and around waters containing the oil deposit. 

Fears of an escalated conflict caused Hess’s shares to drop by around 5% in late 2023, but that wasn’t enough to put Chevron off from the investment.

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Wirth told the Wall Street Journal that the company is confident the takeover of Hess’s assets in the contentious region will make its “strong portfolio even stronger.” 

“We’ve got the highest cash margin in the industry,” the CEO told the outlet. We’ve got low carbon intensity. We’re diversified across a variety of asset classes.”