Reuters The U.S. Federal Trade Commission is expected to greenlight U.S. oil producer Chevron39;s purchase of Hess as soon as this week, two people familiar with the matter said, leaving Exxon Mobil39;s challenge to the 53 billion deal as its final hurdle.

The proposed merger was first announced last October, and the FTC sent a second information request to Chevron two months later. Hess shares were up as much as 3 in afterhours trading on Monday following the news.

Uncertainty over the deal39;s closing has knocked Chevron shares down 1 this year compared to a 6.5 increase in energy share fund XLE.

Exxon and CNOOC Ltd, Hess39;s partners in a Guyana joint venture, are challenging the deal by claiming a right of first refusal to any sale of Hess39;s Guyana assets, the prize in the proposed merger.

A threejudge arbitration panel is due to consider the case in May 2025. Chevron and Hess say a decision is expected by August, while Exxon expects it by September 2025.

The proposed allstock acquisition is one of the largest in a consolidating U.S. oil and gas industry where several multibillion dollar deals have been disclosed.

Chevron39;s announcement of the Hess deal followed Exxon39;s 60 billion purchase of U.S. shale giant Pioneer Natural Resources, which closed in May.

Two other mergers, Occidental Petroleum39;s deal for CrownRock and Diamondback Energy39;s bid for Endeavor Energy Resources, have closed even though they came after the ChevronHess combination.

The FTC…