) has decided to immediately rectify all problems pointed out by
a safety audit of its work on the Valhall field, off Norway.
As a partner in the
) operated field, the company is taking action following the
audit by Norway's Petroleum Safety Authority (PSA) that
recognized alleged weakness in its management.
The audit by the PSA revealed regulatory violation related to
Hess' management and documentation systems, as well as handling
of risks. Hess has received an order from the agency with a
deadline of May 1 for the implementation of actions necessary to
improve its performance.
In response to this order from PSA, Hess issued a statement that
it is working closely with the former to ensure that the
shortcomings are fixed and complied with the PSA's timeline. The
company has also agreed to meet Norwegian regulations.
Hess is executing a transition from an integrated oil and gas
company to a predominantly E&P entity, thereby shifting its
growth approach from high-impact exploration to lower-risk
unconventionals and a smaller, more focused exploration
It is expected that unconventional oil (including sources like
oil shales or coal-based liquid supplies) and gas extraction
(using non-traditional techniques) will play important roles in
the world energy mix in the long run. After building up position
in the North American Bakken oil field for unconventional oil,
Hess is pursuing unconventional gas in the Marcellus Shale play.
Hess' smaller exposure to Eagle Ford and Utica Shale as well as
several global development projects (such as Ghana, Brunei, North
Sea, Gulf of Mexico, Southeast Asia and Kurdistan) are likely to
be the growth drivers.
Hess carries a Zacks Rank #3 (Hold). Some better-ranked stocks in
the oil and gas sector include
Cheniere Energy Partners L.P
). Both stocks hold a Zacks Rank #1 (Strong Buy).
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