The U.S. Federal Trade Commission has lifted the restrictions that the Biden administration had imposed on the CEOs of takeover targets from serving on the boards of Chevron (CVX.N) and Exxon Mobil (XOM.N).

These restrictions were imposed as a condition for the clearance of the oil titans’ acquisitions of two oil producers.

Exxon, which acquired Pioneer Natural Resources last year, was released from an order that prohibited former Pioneer CEO Scott Sheffield from serving on its board.

Chevron, which has agreed to acquire Hess (HES.N) for $53 billion, was also released from a similar order that prohibited John Hess, the CEO of Hess, from serving on its board.

The decisions are the most recent action taken by FTC Chairman Andrew Ferguson to rescind the actions of his Democratic predecessor, Lina Khan.

Ferguson and Republican Commissioner Melissa Holyoak dissented at the time, asserting that the orders exceeded the FTC’s authority, as Khan and her Democratic colleagues had expressed apprehension that Hess and Sheffield would collaborate with members of the Organization of the Petroleum Exporting Countries.

A spokesperson for Chevron informed Reuters, “We are exceedingly pleased with the FTC’s unanimous decision.”

“I am grateful to the current commissioners for their willingness to review this case, and I am undoubtedly pleased that objectivity and fairness have prevailed in their decision to vacate the previous order,” Sheffield stated.

The requests for comments from Reuters were not promptly responded to by Exxon and Hess.

Commissioner Mark Meador stated in a statement that OPEC and OPEC+ “operate as a de facto cartel,” resulting in a highly concentrated oil market.

He also stated that the FTC should not hesitate to take enforcement action against actual collusion and invitations to collude, despite the fact that the three Republican commissioners voted unanimously to reverse the decisions.

In October 2023, Chevron acquired Hess, a minor U.S. oil producer, with the intention of acquiring the latter’s 30% stake in the Stabroek Block in Guyana, which is operated by ExxonMobil, which holds a 45% interest.

ExxonMobil and Hess are currently embroiled in an arbitration dispute. The outcome of the case, which pertains to a significant oilfield project in Guyana, will determine whether Chevron is permitted to proceed with its proposed acquisition of Hess.