Wednesday, November 2, 2016

Occidental Petroleum Acquires Permian Basin Assets for $2 Billion

(Source: Oxy.com)


Occidental Petroleum Corp. said it acquired acreage and interests in enhanced oil recovery assets in the Permian Basin in transactions totaling roughly $2 billion, joining a series of deals in the prolific West Texas drilling field. 

The leasehold deal includes 35,000 net acres in Reeves and Pecos counties in Texas, expanding Occidental Petroleum’s position in the area to nearly 59,000 acres. The leasehold acreage includes production of roughly 7,000 barrels of oil equivalent a day. 

The enhanced-oil-recovery transaction increased Occidental’s ownership in several properties where it is the operator or an existing working interest partner. 

In “enhanced oil recovery” a number of techniques—including injecting carbon dioxide into wells—can be used to coax hard-to-reach oil out of mature energy fields. 

Write to Tess Stynes at tess.stynes@wsj.com

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