US-based crude oil and natural gas company Hess Corporation has secured the necessary approval from its stockholders for completing its previously announced merger with Chevron.

A majority of the company’s shareholders with outstanding shares of Hess common stock voted in favour of the merger agreement, at the special meeting.

The merger does not require any approval from Chevron stockholders, and the two companies are working together to complete the merger as soon as possible.

The completion of the proposed transaction is subject to other closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

It is also subject to the resolution of ongoing arbitration proceedings related to the pre-emptive rights in the Stabroek Block joint operating agreement, said Hess.

Hess Corporation CEO John Hess said: “We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction and look forward to the successful completion of our merger with Chevron.

“Together we will be positioned as a premier integrated energy company, with the leadership, asset portfolio and financial resources to deliver significant shareholder value for years to come.”

In October last year, Chevron agreed to acquire its rival oil and gas company Hess for $53bn, and the total enterprise value may become $60bn if Hess’ debt is included.

Under the terms of the deal, Hess’ shareholders will exchange each of their shares in the company for 1.025 shares of Chevron, which values each share of Hess at $171.

The acquisition would help Chevron upgrade and diversify its portfolio, with a 30% stake in Guyana’s offshore Stabroek block.

Currently, the block holds estimated reserves of more than 11 billion barrels of oil equivalent, with the potential for exploration of several billion additional barrels.

The company is also enabled to expand its holdings in the Bakken shale play in North Dakota, adding 465,000 net acres of inventory, which will be further strengthened by Hess Midstream.

In addition, Chevron will also acquire complementary assets in the Gulf of Mexico and benefit from a consistent stream of free cash flow from Hess’ Southeast Asia natural gas business.