Occidental Petroleum Confirms It Will No Longer Pursue Contract Extension for Idd El-Sharghi North Dome Offshore Field in Qa...
October 15 2018 - 11:42AM
Occidental Petroleum Corporation (NYSE:OXY) today confirmed it will
no longer pursue the extension of the Idd El-Sharghi North Dome
(ISND) offshore field in Qatar, which expires in October
2019.
“We have been honored to partner with Qatar
Petroleum for more than 20 years on the development of the ISND
field. During our operatorship, we have significantly increased
production while being recognized as a leader in safety performance
and the lowest-cost offshore oil operator in the country,” said
President and Chief Executive Officer Vicki Hollub. “Consistent
with our strategy, our intent is to redeploy our capital and human
resources to projects where we can deliver the highest returns for
our shareholders.”
2018 Free Cash Flow (FCF) for ISND is estimated to
be less than $300 million with production of 51,000 barrels of oil
equivalent per day, prior to adjustment for foreign tax barrels.
Occidental intends to have the production and cash flow from the
ISND contract replaced in 2020 from its ongoing development program
and reallocation of 2019 capital from ISND. Due to the major
infrastructure investments that would have been required under an
extension, the company’s estimate for FCF was approximately $70
million annually for the first five years.
About Occidental Petroleum
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based
on equity market capitalization. Occidental’s midstream and
marketing segment gathers, processes, transports, stores, purchases
and markets hydrocarbons and other commodities. The company’s
wholly owned subsidiary OxyChem manufactures and markets basic
chemicals and vinyls. Occidental posts or provides links to
important information on its website at www.oxy.com.
Forward-Looking Statements
Portions of this press release contain
forward-looking statements and involve risks and uncertainties that
could materially affect expected results of operations, liquidity,
cash flows and business prospects. Actual results may differ from
anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance.
Factors that could cause results to differ include, but are not
limited to: global commodity pricing fluctuations; supply and
demand considerations for Occidental’s products;
higher-than-expected costs; the regulatory approval environment;
not successfully completing, or any material delay of, field
developments, expansion projects, capital expenditures, efficiency
projects, acquisitions or dispositions; uncertainties about the
estimated quantities of oil and natural gas reserves;
lower-than-expected production from development projects or
acquisitions; exploration risks; general economic slowdowns
domestically or internationally; political conditions and events;
liability under environmental regulations including remedial
actions; litigation; disruption or interruption of production or
manufacturing or facility damage due to accidents, chemical
releases, labor unrest, weather, natural disasters, cyber-attacks
or insurgent activity; failure of risk management; changes in law
or regulations; reorganization or restructuring of Occidental’s
operations; or changes in tax rates. Words such as “estimate,”
“project,” “predict,” “will,” “would,” “should,” “could,” “may,”
“might,” “anticipate,” “plan,” “intend,” “believe,” “expect,”
“aim,” “goal,” “target,” “objective,” “likely” or similar
expressions that convey the prospective nature of events or
outcomes generally indicate forward-looking statements. 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. Material risks that may affect Occidental’s
results of operations and financial position appear in Part I, Item
1A “Risk Factors” of Occidental’s Annual Report on Form 10-K for
the year ended December 31, 2017.
Contacts: Media: Melissa E. Schoeb 713-366-5615
melissa_schoeb@oxy.com or Investors: Jeff
Alvarez713-215-7864jeff_alvarez@oxy.com On the web: www.oxy.com
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