Between 6 September 2013 and 17 October 2013, the PSA conducted an audit of Hess and the company's fulfilment of its obligations as licensee of the Valhall production licence.
The PSA has developed a method for auditing the licensees in production licences, and Hess is the first company to be the subject of the PSA's auditing of these companies.
Hess is the dominant licensee in the Valhall production licence with a 64% share of ownership; the operator BP holds 36%. Hess has been represented on the Norwegian shelf since 1973, but the company's activities and organisational structure in Norway have varied.
At international level, Hess has recently undergone a major reorganisation, which has had an effect on the company's activities in Norway.
Issues relating to organisation, management, documentation and risk management were the main elements of the audit.
The PSA identified three non-conformities during the audit relating to:
In addition, an improvement point was identified in connection with role identification.
Based on the findings made during the audit, the PSA has now given Hess notice of the following order:
Pursuant to the Framework Regulations, section 69 concerning administrative decisions, with reference to the Management Regulations, section 6 concerning the management of health, safety and the environment, Hess Norge AS is ordered to conduct a full review of the regulatory requirements concerning the management of activities and to implement measures to fulfil these requirements in its own activities.
The deadline for complying with the order is set at 1.5.2014. We are to be notified when the order has been carried out.
Explanation of the terms "order" and "notification of order"
An order is an administrative decision made pursuant to the regulations. Before we issue an order, we generally send a "notification of order" to the affected companies.
A notification of order is neither an instrument nor a notice of sanctions, but a step in the PSA's case processing in which we request the party to assess the factual basis. The notification is only the first step before an administrative decision is made.
An order is a strongly preventive instrument which is legally binding on the recipient.
Øyvind Midttun, press contact
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