Chevron preps quick closing of Hess acquisition

Chevron is laying the groundwork to swiftly close its planned acquisition of smaller oil producer Hess, according to two sources and an industry analyst, including by preparing a severance program for some Hess workers.

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The preparations come as both companies await a decision in a legal challenge from larger rival Exxon Mobil that will make or break the $53-billion deal.

Completing the Hess acquisition is key to Chevron Chief Executive Officer Mike Wirth’s strategy. Chevron would gain Hess’ 30% interest in the Stabroek oilfield block in Guyana, which is operated by Exxon and holds more than 11 billion barrels of oil equivalent, providing a critical addition to Chevron’s declining oil and gas reserves.

Chevron has assigned roles in its information technology team to work on the Hess integration, according to an internal organizational chart that Reuters reviewed.

Members of that team have met regularly with counterparts at Hess in recent months to prepare logistics of combining the two companies, said one Chevron employee and a second source familiar with the meetings. Both sources declined to be named while discussing the confidential work.