The FTC has approved the Chevron-Hess merger, but has barred John Hess from serving on the board.

• On Monday, the FTC accused John Hess of urging OPEC officials to reduce their oil stockpiles, leading to an increase in oil prices.
• The merger between Hess Corp. and Chevron will not be hindered by Hess being appointed to the board, as both companies have agreed not to do so.
• Hess is involved in a disagreement with Chevron and Exxon Mobil over ownership of valuable oil assets in Guyana.

The $53 billion merger of oil companies can proceed, as the Federal Trade Commission has prohibited CEO John Hess from serving on the board of 's board.

On Monday, the FTC accused Hess of urging OPEC officials to reduce their oil stockpiles, leading to an increase in oil prices.

According to Henry Liu, director of the FTC's Bureau of Competition, Mr. Hess's communications with competitors about global oil output and other aspects of the crude oil market competition disqualify him from serving on Chevron's Board of Directors.

Hess stated that the FTC concerns were unfounded, as the CEO's communications with OPEC were in line with the statements he had made to the U.S. government.

Hess Corp. and Chevron have agreed not to appoint Hess to the board to facilitate the merger, and instead, Hess will serve as an advisor to Chevron on government relations and "social investments" in Guyana.

Exxon Mobil is claiming a right of first refusal over Hess' oil assets in Guyana, which has resulted in a dispute between Chevron and Hess. If an arbitration panel rules in Exxon's favor, the Chevron-Hess deal will not close. However, Chevron and Hess are confident that the panel will rule in their favor.

This is a developing story. Please check back for updates.