U.S. shale producer Continental Resources has filed a lawsuit against Hess Corp. alleging that it was defrauded out of up to $69 million through a series of deals the well operator conducted with its subsidiaries.
Continental said that Hess, which operates hundreds of wells in North Dakota’s Bakken play, artificially inflated midstream service fees by entering into agreements with its own subsidiaries. Net revenues for hydrocarbons from the wells, in which Continental holds a non-operating working interest, were far below market value due to excessive service fees paid to Hess Midstream Partners, the lawsuit said.
"Hess Corp has transferred value from its upstream assets to its midstream assets rather than operate with the best interests of non-operating working interest owners in mind," said the lawsuit filed in a federal court in Houston.