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13h ago

Chevron Cuts 800 Permian Jobs, Faces Hess Arbitration and Venezuela Production Ban

Regulatory rulings have driven the job cuts ahead of a key arbitration over Hess’s Guyana stake.

Chevron logo is seen in this illustration taken, October 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Chevron CEO Mike Wirth speaks at CERAWeek by S&P Global in March.
Houston-based Chevron will layoff nearly 800 at its Permian Basin facilities in West Texas, according to information from the Texas Workforce Commission. 
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Overview

  • Chevron is shedding 800 positions in the Permian basin after earlier trimming 600 roles in California as part of a plan to cut its global workforce by 20% by 2026.
  • A London arbitration panel has opened hearings on ExxonMobil’s challenge to Chevron’s $53 billion Hess acquisition, focusing on control of Hess’s 30% stake in Guyana’s Stabroek block.
  • ExxonMobil operates the Stabroek block with a 45% share and has secured backing from China’s CNOOC in its bid to enforce a right of first refusal.
  • The U.S. administration will extend Chevron’s Venezuela sanction waiver next month but will bar the company from any oil production or expansion in the country.
  • Chevron’s Venezuelan production license was revoked earlier this year, underscoring the regulatory obstacles complicating its restructuring and growth plans.