The Federal Trade Commission has given the green light to Exxon Mobil’s acquisition of Pioneer Natural Resources, but with a major condition attached. The $60 billion deal, set to create the dominant oil and gas producer in the Permian Basin, the country’s largest oil field, will move forward as long as Pioneer’s chief executive, Scott Sheffield, is excluded from Exxon’s board.
The F.T.C. accused Mr. Sheffield of colluding with OPEC and its allies to control global oil production and prices, citing his efforts to align oil production across the Permian Basin with the cartel. The commission claimed that Mr. Sheffield exchanged hundreds of text messages with OPEC representatives discussing the oil market, prices, and production.
In response, Exxon stated that they have agreed not to add Mr. Sheffield to their board, emphasizing that the F.T.C.’s allegations are inconsistent with their business practices. On the other hand, Pioneer Natural Resources refuted the accusations, asserting that Mr. Sheffield had never sought to collude with other oil producers and highlighting the company’s efforts to increase oil production in the United States.
Despite the controversy, shares of both Exxon and Pioneer saw a 1 percent increase on Thursday morning. The acquisition, which may be finalized this week, marks another significant merger in the oil and gas industry. Stay tuned for more updates on this developing story.
