LOS ANGELES, May 1, 2007 (PRIME NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) today announced an asset exchange with BP.
Oxy will receive BP's oil and gas interest in the Seminole San Andres Unit, Sheep Mountain and numerous interests in the Cowden area that are adjacent and complementary to Oxy's existing Permian Basin operations. The Permian Basin extends through West Texas and southeast New Mexico.
The acquired oil and gas properties will add an estimated 39 million barrels of oil equivalent (BOE) of net proved reserves, and net production of approximately 8,000 BOE per day to Oxy's Permian operations. The Sheep Mountain property will strengthen Oxy's position as a leader in CO2 enhanced oil recovery in the Permian Basin.
BP will receive Oxy's one-third interest in the BP-operated Horn Mountain property in the exchange.
At year-end 2006, Oxy's net proved Horn Mountain reserves were approximately 21 million BOE with current average daily production of approximately 8,000 BOE net per day.
Upon closing of these transactions, expected in the third quarter and subject to government approvals, BP will receive from Oxy a total net cash payment of about $100 million, subject to adjustments. Oxy will reclassify its Horn Mountain assets as discontinued operations.
The asset exchange is in addition to the April 23, 2007 announcement of Oxy's purchase of BP's West Texas pipeline system and BP's acquisition of Oxy's interests in Pakistan currently operated by BP.
About Oxy
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.
Forward-Looking Statements
Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to differ materially include, but are not limited to: exploration risks such as drilling of unsuccessful wells, global commodity pricing fluctuations and supply/demand considerations for oil, gas and chemicals; higher than expected costs; political risks; changes in tax rates; unrealized acquisition benefits or higher than expected integration costs; and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition or disposition. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through 1-888-699-7383 or at www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.