Chevron agrees Hess CEO not to join board in deal with US regulator, Bloomberg News By Reuters reports

(Reuters) – US energy major Chevron (NYSE: ) agreed that Hess (NYSE: ) CEO John Hess will not join its board in an agreement with the U.S. Federal Trade Commission to proceed with the $53 billion takeover deal, Bloomberg News reported, citing people familiar with the matter.

The proposed stock purchase, first announced in October, is one of the largest in the U.S. oil and gas industry and the latest in a slew of multibillion-dollar deals in the space.

Chevron, Hess and the FTC did not immediately respond to Reuters requests for comment.

The approval clears a hurdle, but Chevron still has to win an arbitration challenge filed by ExxonMobil (NYSE: ) on Hess’ stake in an oil field in Guyana — a coveted asset in the proposed merger.

Exxon and CNOOC (NYSE:) Ltd, Hess’ partners in the Guyana joint venture, are contesting the deal claiming a right of first refusal on any sale of the Guyana assets.

Hess owns 30% of Guyana’s giant Stabroek block, operated by Exxon, which owns 45%. of China CNOOC Ltd owns the remaining 25%. The companies expect to double production to 1.3 million barrels of oil and gas per day by 2027.