Darren Woods, CEO of ExxonMobil, speaks throughout an interview with CNBC on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2023.
Brendan Mcdermid | Reuters
Exxon Mobil CEO Darren Woods on Thursday dismissed worries that the Federal Trade Commission could hold up the oil large’s pending acquisition of Pioneer Natural Resources.
“I do not assume there’s any angle that you would be able to have a look at this potential mixture and discover any concerns about competition,” Woods advised CNBC’s “Squawk on the Street” in an unique interview. The deal is anticipated to shut within the first half of 2024.
Woods mentioned that whereas the $60 billion deal seems massive, the transaction is small within the context of the broader U.S. oil market. He mentioned crude manufacturing from the acquisition of Pioneer would quantity to lower than 5% of the U.S. complete.
The Pioneer deal is Exxon’s largest since its $75 billion merger with Mobil in 1999. Pioneer is likely one of the largest producers within the oil-rich Permian Basin.
The FTC sought further data from Exxon this week on the acquisition. Woods mentioned Exxon will reply as rapidly as attainable: “We assume it is cheap to have a look,” he mentioned of the FTC probe.
Senate Majority chief Chuck Schumer, D-N.Y., and greater than 20 of his Democratic colleagues referred to as on the FTC to scrutinize Exxon’s acquisition in addition to Chevron’s deal to buy Hess for $53 billion.
The senators argued the offers could result in larger gasoline costs for Americans.
“These offers have all of the hallmarks of dangerous, anticompetitive impact, and in the event that they’re allowed to occur, Americans could see the implications by larger costs on the pump,” Schumer mentioned in a Senate speech final month.
Exxon is investing closely in manufacturing within the Permian Basin and the South American nation of Guyana. Neighboring Venezuela on Sunday voted to claim sovereignty over a swathe of territory in Guyana.
Woods mentioned the border problem between Venezuela and Guyana is lengthy standing and he expects the dispute to be resolved within the International Court of Justice.
When requested about fears Venezuela could invade its a lot smaller neighbor, Woods mentioned he does not imagine Guyana would stand alone in such a situation.
“We’ve all seen what occurs when nations’ sovereignties are challenged and unilateral actions taken,” Woods mentioned. “My expectation is there’s extra broad help within the worldwide group to make it possible for the appropriate processes are adopted to resolve this dispute.”
“We know what we have to do in nation: develop these assets economically, environmentally responsibly and do what we have been contracted to do,” the CEO mentioned.
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