Chevron to Merge Hess Exploration Team After $53B Deal

Move Aims to Boost Discoveries Following Guyana Success
Chevron gas station
Chevron will have 鈥渁 stronger team as we move forward to challenge some of our conventional thinking,鈥 Wirth said. (David Paul Morris/Bloomberg)

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Chevron Corp. plans to merge Hess Corp.鈥檚 exploration team with its own to challenge 鈥渃onventional thinking鈥 and make new discoveries, CEO Mike Wirth said in an interview on Bloomberg TV鈥檚听Wall Street Week.听

Chevron is cutting about听650 Hess jobs听after completing its $53 billion takeover last month, but exploration is one area likely to be spared.听

鈥淲e鈥檙e going to bring their talent, their experience, their insights and blend it with ours,鈥 Wirth said. Chevron will have 鈥渁 stronger team as we move forward to challenge some of our conventional thinking.鈥



Chevron鈥檚 exploration team has struggled to find new discoveries in recent years. A highly anticipated well in Namibia failed to find oil and gas this year. Wirth declared himself 鈥渘ot happy鈥 with the team鈥檚 results on the company鈥檚 last earnings call earlier this month and vowed to make changes.听

Hess, spurred on by its geologists, bought a 30% stake in Guyana鈥檚 Stabroek Block just months before Exxon Mobil Corp. drilled its first well, leading to the听biggest oil discovery听in a generation. The block now has 11 billion barrels of recoverable resource, and was the main reason why Chevron bought Hess in its largest-ever deal.听

鈥淗ess has some very talented people in exploration who鈥檝e been quite involved in the identification and appraisal of the resource in Guyana,鈥 Wirth said.听

Chevron has several exploration targets in South America, West Africa and the Eastern Mediterranean. It plans to drill an exploration well in Suriname well later this year.

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