Occidental Streamlines Operations
According to two recent articles in “Rigzone”, Occidental (Oxy) is selling assets, moving its headquarters, and reconfiguring the company. Oxy is increasingly focusing on the Permian basin in West Texas and New Mexico where it has significant production.
Oxy is selling its California unit, the largest gas producer in the state. The Golden State operation produced 261 MMCF and 88,000 barrels of oil per day in 2013 from 2.1 M net acres. Proceeds from the sale are expected to range from $19-22 billion.
Occidental is also selling its 1.4 million acres in the gas prone Hugoton field which spans Southwestern Kansas, and parts of Oklahoma and Colorado. Proceeds of $1.4 billion from this transaction are expected to be used for stock buybacks.
Further sales include Oxy’s Middle East and North Africa operations. The company also plans to reduce proprietary trading in oil and other commodities, and move its headquarters from Los Angeles to Houston.
To read the articles in their entirety, please go to http://www.rigzone.com/news/oil_gas/a/131637/ and http://www.rigzone.com/news/oil_gas/a/131621/Occidental .