(Added comments by Chevron and Hess Corp in paragraphs 4 and 7, context)
WASHINGTON, April 11 (Reuters) – The Federal Trade Commission has taken a step forward toward a ban on certain oil executives joining the boards of Chevron and Exxon Mobil, which has conditions that enable them to acquire two other oil producers.
Exxon, which acquired Pioneer Natural Resources last year, has agreed to shut out former Pioneer CEO Scott Sheffield. Chevron agreed to buy Hess in 2023, agreeing to the agreed order that led the company’s CEO John Hess to reject the board.
The Federal Trade Commission said Friday it is seeking public comment on petitions filed by Sheffield, Chevron and Hess in an effort to reverse the ban.
“Mr. Hess is a respected industry leader and our board will benefit from his global experience, relationships and expertise,” a Chevron spokesman said in a statement. Both deals received a green light from the FTC and were then led by Chairman Lina Khan, on condition that Hess and Sheffield were banned from their respective boards as they would coordinate with members of the Organization of the Petroleum Exporting Countries. Both John Hess and Sheffield denied the allegations. A Hess Corp spokesman said the concerns raised by the FTC were “absolutely no merit.”
FTC Chairman Andrew Ferguson was then a commissioner and Republican Commissioner Melissa Holyoak voted against the deal, saying they were beyond the authority.
Exxon, the first American oil company, acquired Pioneer in a $59.5 billion deal last year. Chevron acquires Hess for $53 billion, awaiting ongoing arbitration proceedings tied to preemptive rights related to Hess’ shares in Guyana’s oil-rich Stabroek Block. (Reported by Doina Chiacu and Ismail Shakil in Washington, Jody Godoy in New York and Sheila Dang in Houston; Edited by Mark Porter and Marguerita Choy)
