Finance and Economics APP learned that the Federal Trade Commission (FTC) of the United States has prohibited$Hess Corp (HES.US)$CEO John Hess from joining$Chevron (CVX.US)$the board of directors as a condition for the two oil companies to advance a $53 billion merger.

FTC stated on Monday that Hess has been communicating with OPEC representatives for years on global oil production and inventory management, encouraging them to take actions that support oil price increases.

FTC also pointed out that Hess has praised OPEC's policies in public statements. Hess has previously stated in a declaration that Saudi Arabia has 'brilliantly led OPEC+' by 'excellently not oversupplying the market'.

FTC stated that Hess joining the Chevron board would significantly increase 'Chevron's likelihood of aligning its production with OPEC's to maintain higher prices'.

Hess Corp stated in a declaration on Monday that FTC's concerns are unfounded, and mentioned that Hess's communications with OPEC are consistent with his statements to the US government.

However, both Hess Corp and Chevron have stated that they will not appoint Hess to the board to facilitate the completion of the merger. Hess will serve as an advisor to Chevron on government relations in Guyana and 'social investments'.

Chevron CEO Mike Wirth said the FTC's decision is "an important step in completing the merger". Wirth expressed regret that Hess cannot join the board of directors of this oil giant.

The FTC's approval of the transaction has made it the final obstacle for the completion of the deal between Exxon Mobil (XOM.US) and these two companies. Exxon Mobil claims priority purchase rights to Hess's oil assets in Guyana.

The FTC has also issued a similar order regarding Exxon Mobil's acquisition of Pioneer Natural Resources. The commission prohibited former Pioneer CEO Scott Sheffield from joining the Exxon Mobil board of directors, accusing him of colluding with OPEC to raise oil prices.

Editor/ping