LOS ANGELES, April 23, 2007 (PRIME NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) today announced two separate transactions with BP.
First, Oxy will purchase for cash BP's West Texas pipeline system. Second, BP will acquire for cash Oxy's oil and gas interests in Pakistan currently operated by BP.
In the first transaction, Oxy will acquire BP's 2,300-mile-long West Texas Pipeline System (WTPS) which extends from the Permian Basin in West Texas and New Mexico to the market center in Cushing, Oklahoma and has the capacity to transport 191,000 barrels of crude oil per day. The WTPS will enhance Oxy's ability to transport its Permian oil production to market.
In the second transaction, BP will acquire all of Oxy's remaining interests in Pakistan. At year-end 2006, Oxy's net proved Pakistan reserves were approximately 3 million Bbls of oil and 68 Bcf of natural gas. Pakistan's current average daily production is approximately 3,800 net barrels of oil per day and 73 net million cubic feet of natural gas per day.
Closing of these comparable value transactions is expected in the third quarter and subject to government approvals. Oxy will reclassify its Pakistan assets as discontinued operations.
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
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