The Federal Trade Commission has said Hess Corp’s CEO must not join the board of Chevron if it is to give the green light to the merger of the two. Reuters reported that the regulator did not give reasons for its demand. Earlier in the week, media reported, citing unnamed sources, that the FTC was set to approve the deal, although its finalization depends on the outcome of an arbitration case brought against Chevron and Hess by the latter’s partner in Guyana, Exxon.
The FTC move against John Hess echoes an identical demand placed on Exxon earlier this year with regard to the former chief executive of Pioneer Natural Resources, Scott Sheffield, who was barred from joining the board of the new, larger company after Exxon completes the $60-billion deal. For that decision, the FTC gave as reason allegations that Sheffield had “colluded” with OPEC to restrict oil supply in order to push international prices higher.