New York-based Hess Corporation announced on Wednesday it is going to take legal action against oilfield services provider Schlumberger to recover at least $40m in damages pertaining to an alleged defective valve that cost Hess lost production from wells in the US Gulf of Mexico, according to Reuters
Hess, an NYSE-listed integrated oil company with an active presence in the Gulf of Mexico, explained in its quarterly earnings conference call that the valve caused the shutdown of three wells at the deep water Tubular Bells field offshore New Orleans, seriously impacting its output.
The company did not specify whether it would pursue its claim through lawsuit or arbitration.
Schlumberger is a 90-year-old multinational with principal offices in Houston, Paris, London and The Hague.
