WASHINGTON (Reuters) -The U.S. Federal Trade Commission took a step toward potentially reversing bans on certain oil executives joining the boards of Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) that the Biden administration made a condition that allowed them to acquire two other oil producers.
Exxon, which acquired Pioneer Natural Resources (NYSE:PXD) last year, had agreed to bar former Pioneer CEO Scott Sheffield from its board. Chevron, which agreed to buy Hess in 2023, consented to a similar order keeping that company’s CEO, John Hess, off its board.
The FTC said on Friday that it was seeking public comment on petitions filed by Sheffield, Chevron and Hess Corp (NYSE:HES) seeking to reverse the bans.
“Mr. Hess is a highly respected industry leader, and our board would benefit from his global experience, relationships and expertise," a Chevron spokesperson said in a statement.
Both deals got the greenlight from the FTC, then led by Chair Lina Khan, on the condition that Hess and Sheffield be barred from the respective boards over concerns they would coordinate with members of the Organization of the Petroleum Exporting Countries.
Both John Hess and Sheffield denied the allegations. A spokesperson for Hess Corp said the concerns raised by the FTC were "entirely without merit."
FTC Chairman Andrew Ferguson, then a commissioner, and fellow Republican Commissioner Melissa Holyoak voted against the agreements, saying they overstepped the agency’s authority.
Exxon, the No. 1 U.S. oil company, bought Pioneer in a deal worth $59.5 billion last year. Chevron’s acquisition of Hess for $53 billion is pending ongoing arbitration proceedings related to potential preemptive rights over Hess’s stake in the oil-rich Stabroek block in Guyana.