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Released July 21, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Dust off your best duds and break out the champagne: U.S. supermajor Chevron Corporation (Houston, Texas) and Hess Corporation (New York, New York) are getting hitched. Chevron announced Friday it had closed its $55 billion acquisition of the oil and gas developer, immediately following two big wins: an arbitration victory over Exxon Mobil Corporation (Spring, Texas) concerning Hess' high-value Guyana assets, and the Federal Trade Commission's (FTC) decision to allow Hess' chief executive officer to serve on Chevron's Board of Directors. Industrial Info is tracking about $27 billion worth of active and proposed projects worldwide from Chevron.
Click on the image at right for a graph detailing Chevron's active and proposed projects worldwide, by industry sector.
The deal had been challenged by Exxon and China National Offshore Oil Corporation (CNOOC) (Beijing, China), Hess' partners in the lucrative Stabroek Block offshore Guyana, which is home to more than 11 billion barrels of oil. Exxon and CNOOC argued they had a pre-emptive right to purchase Hess' 30% stake in Stabroek, which is one of the largest oil discoveries in decades, but last week the International Chamber of Commerce (ICC) disagreed. The ICC has no appeals process.
Chevron will now reap the benefits of partnering with Hess in one of the world's fastest-growing oil developments. Last year, Hess reported $3.1 billion in earnings from its Guyana holdings, up from $1.9 billion in 2023. Altogether, Industrial Info is tracking more than $7.8 billion worth of active and proposed projects offshore Guyana featuring Hess' services; subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
"This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s," said Eimear Bonner, the chief financial officer of Chevron, in a press release. "We are quickly integrating our two companies and expect to achieve $1 billion in annual run-rate cost synergies by the end of 2025."
Chevron expects the combined company's capital-expenditure budget to be between $19 billion and $22 billion.
Within the U.S., Hess has prominent roles in North Dakota's prosperous Bakken Shale, where it owns several gas-processing plants and crude oil terminals, and the deepwater Gulf of Mexico, where it has developed production platforms and subsea installations. Subscribers to Industrial Info's GMI Plant Database can click here for a full list of detailed profiles of Hess' operational assets worldwide, and can click here for a list of those within the U.S.
In the Bakken, Hess is considering the proposed Capa Gas Plant near Tioga, North Dakota, which would process 125 million standard cubic feet per day of natural gas. Hess operates more than 1,600 oil wells in North Dakota and has deep roots in the area; in 1969, Hess merged with Amerada Petroleum Corporation, which 18 years earlier had become the first company to discover oil in North Dakota, at a site also near Tioga. John Hess, the chief executive officer of Hess who soon will be on Chevron's board, succeeded his father, Leon Hess, in both the company's top role and in aggressively developing its Bakken assets.
Subscribers can learn more about the proposed Capa Gas Plant in a detailed project report and plant profile.
Executives at Chevron are pinning their hopes for a companywide turnaround on the Hess acquisition. Chevron, like its fellow oil and gas majors, has faced a long period of uncertain oil demand, a problem compounded by oil prices insufficient for the aggressive "drill, baby, drill" expansions sought by U.S. President Donald Trump. Market analysts had predicted natural gas prices would skyrocket in 2025 amid growing demand for liquefied natural gas (LNG) and other products, but that trend has yet to emerge.
In February, Chevron announced plans to cut up to 20% of its global workforce, which executives said was necessary to stay competitive.
Subscribers can click here for a full list of detailed reports for active and proposed projects worldwide from Chevron.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Chevron's active and proposed projects worldwide, by industry sector.The deal had been challenged by Exxon and China National Offshore Oil Corporation (CNOOC) (Beijing, China), Hess' partners in the lucrative Stabroek Block offshore Guyana, which is home to more than 11 billion barrels of oil. Exxon and CNOOC argued they had a pre-emptive right to purchase Hess' 30% stake in Stabroek, which is one of the largest oil discoveries in decades, but last week the International Chamber of Commerce (ICC) disagreed. The ICC has no appeals process.
Chevron will now reap the benefits of partnering with Hess in one of the world's fastest-growing oil developments. Last year, Hess reported $3.1 billion in earnings from its Guyana holdings, up from $1.9 billion in 2023. Altogether, Industrial Info is tracking more than $7.8 billion worth of active and proposed projects offshore Guyana featuring Hess' services; subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
"This accretive transaction is expected to drive significant free cash flow and production growth into the 2030s," said Eimear Bonner, the chief financial officer of Chevron, in a press release. "We are quickly integrating our two companies and expect to achieve $1 billion in annual run-rate cost synergies by the end of 2025."
Chevron expects the combined company's capital-expenditure budget to be between $19 billion and $22 billion.
Within the U.S., Hess has prominent roles in North Dakota's prosperous Bakken Shale, where it owns several gas-processing plants and crude oil terminals, and the deepwater Gulf of Mexico, where it has developed production platforms and subsea installations. Subscribers to Industrial Info's GMI Plant Database can click here for a full list of detailed profiles of Hess' operational assets worldwide, and can click here for a list of those within the U.S.
In the Bakken, Hess is considering the proposed Capa Gas Plant near Tioga, North Dakota, which would process 125 million standard cubic feet per day of natural gas. Hess operates more than 1,600 oil wells in North Dakota and has deep roots in the area; in 1969, Hess merged with Amerada Petroleum Corporation, which 18 years earlier had become the first company to discover oil in North Dakota, at a site also near Tioga. John Hess, the chief executive officer of Hess who soon will be on Chevron's board, succeeded his father, Leon Hess, in both the company's top role and in aggressively developing its Bakken assets.
Subscribers can learn more about the proposed Capa Gas Plant in a detailed project report and plant profile.
Executives at Chevron are pinning their hopes for a companywide turnaround on the Hess acquisition. Chevron, like its fellow oil and gas majors, has faced a long period of uncertain oil demand, a problem compounded by oil prices insufficient for the aggressive "drill, baby, drill" expansions sought by U.S. President Donald Trump. Market analysts had predicted natural gas prices would skyrocket in 2025 amid growing demand for liquefied natural gas (LNG) and other products, but that trend has yet to emerge.
In February, Chevron announced plans to cut up to 20% of its global workforce, which executives said was necessary to stay competitive.
Subscribers can click here for a full list of detailed reports for active and proposed projects worldwide from Chevron.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
