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Occidental signs US$2b deal to expand Permian footprint

Tuesday, November 1, 2016 - 12:33

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Occidental Petroleum Corp, the world's largest independent oil explorer, agreed to pay US$2 billion for drilling rights and crude wells in the Permian Basin, expanding its dominant position in the biggest US oil field.

[CHICAGO] Occidental Petroleum Corp, the world's largest independent oil explorer, agreed to pay US$2 billion for drilling rights and crude wells in the Permian Basin, expanding its dominant position in the biggest US oil field.

The transactions with unnamed, private sellers involve drilling rights to 35,000 acres in the Permian's Delaware Basin area, in addition to wells pumping the equivalent of 11,000 barrels of crude a day, Houston-based Occidental said in a statement Monday.

Chief Executive Officer Vicki Hollub has been searching the Permian Basin for acquisition opportunities since her elevation in April, continuing the expansion strategy of her predecessor and mentor Stephen Chazen. During the past several years, Occidental has been shedding international assets and holdings in US oil regions such as North Dakota and California to focus most of its efforts on the Permian's stacked layers of crude-soaked rocks.

The statement was released after the close of regular US equities trading Monday. Occidental fell 1 percent to US$72.91 at the close in New York. The company is slated to report third-quarter results on Tuesday.

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