Hess Corporation, once a well-known name in the U.S. petroleum industry, has been acquired by Chevron in a $53 billion deal. The acquisition, completed in July 2025, was driven by Hess’s valuable 30% stake in Guyana’s Stabroek Block, one of the world’s largest offshore oil discoveries. The Stabroek Block, operated by Exxon Mobil, contains over 11 billion barrels of oil and was producing about 650,000 barrels a day as of 2025, with plans to increase that to 1.2 million barrels by 2027.
Hess’s journey began in 1920 as Amerada Corporation, an independent oil exploration company. Over the decades, it merged with other entities, including Hess Oil and Chemical Corporation, founded by Leon Hess in 1933. By the early 2000s, the company had streamlined its operations, exiting the retail gasoline market by 2017 and focusing solely on oil and natural gas exploration and production. Its significant assets included the Bakken shale in North Dakota, the Gulf of Mexico, and Southeast Asia, with a growing interest in Suriname and Guyana.
The acquisition by Chevron was not without challenges. Exxon initially resisted the deal, invoking preemption rights to match Chevron’s offer. A months-long arbitration process followed, culminating in a ruling in Chevron’s favor in July 2025. The deal was seen as a strategic move to bolster Chevron’s growth prospects through the 2030s. Hess’s former CEO, John B. Hess, was later nominated to Chevron’s board of directors.
Although Hess Corporation no longer exists as an independent entity, its legacy lives on. The company’s long-running tradition of holiday toy trucks continues through a family-run business, and its role in Guyana’s rise as a major oil producer remains a significant contribution to the energy industry.