Hess restructuring draws call for more action

摘要

US oil firm Hess’ divestment of its last refining asset as it concentrates on becoming a focused US onshore upstream producer appears to be too little, too late for a key activist shareholder demanding more radical change. Hess on 28 January said it will sell its 28mn bl terminal network and close its 65,000 b/d cracking facility in Port Reading, New Jersey. But activist shareholder Elliott Associates publicly rebuked the company’s management the following day for what it called a lack of capital discipline. “There are real problems at Hess and we believe they stem from a lack of focus and strategy,” Elliott says. It says the firm has “lost” $4bn in exploration investment over the past five years, and is “consistently” over-budget, including underestimating costs in the Bakken shale last year by $1bn.