Hess Corp will sell its energy trading arm and exit its retail petrol and marketing businesses by 2015.
Partly in response to investors pressure, the US-based energy giant is set to break up its empire and divest its trading arm, Hetco, as well as power plants and more than 1,300 petrol stations. Hess will focus on exploration and production from oil and gas fields in the US, Norway, Malaysia and Ghana.
Although the company maintains that the divestment is part of a long-term strategy, Hess is one of several companies whose investors have called for change due to underperforming share prices and governance issues. Hess joins an increasing list of competitors, such as Marathon Oil, Murphy Oil and - as previously reported by OATS - ConocoPhillips, in exiting the refining business.
There is speculation that Occidental Petroleum may be the next in line to separate its substantial chemical, midstream segments from its exploration and production portfolio.