Occidental Announces Sale of Ghana Assets for $750 Million
October 13 2021 - 04:10PM
Occidental (NYSE: OXY) today announced it has agreed to sell its
interests in two Ghana offshore fields for $750 million to Kosmos
Energy ($550 million) and Ghana National Petroleum Corporation
(GNPC) ($200 million), prior to closing adjustments to reflect an
April 1, 2021 effective date. The sale to Kosmos closed upon
signing and the sale to GNPC is expected to close in the fourth
quarter of 2021. The transaction includes Occidental’s interests in
both the Jubilee and TEN fields, which combined had second quarter
2021 net production of 22 thousand barrels of oil equivalent per
day. Occidental classified the Ghana operations as held for sale,
as of June 30, 2021. Separately, Occidental settled certain tax
claims related to historical operations.
“With this transaction, we have achieved our post-Colombia
divestiture target,” said President and Chief Executive Officer
Vicki Hollub. “Proceeds from the Ghana asset sale will be applied
to debt reduction. Combined, our divestiture program and free cash
flow generation have enhanced our ability to reduce debt, as
evidenced by the $4.5 billion we have repaid year to date. We
remain committed to creating value for our shareholders through our
deleveraging efforts.”
About Occidental
Occidental is an international energy company with assets
in the United States, Middle East, Africa and Latin America. We are
one of the largest oil producers in the U.S., including a leading
producer in the Permian and DJ basins and offshore Gulf of Mexico.
Our midstream and marketing segment provides flow assurance and
maximizes the value of our oil and gas. Our chemical subsidiary
OxyChem manufactures the building blocks for life-enhancing
products. Our Oxy Low Carbon Ventures subsidiary is advancing
leading-edge technologies and business solutions that economically
grow our business while reducing emissions. We are committed to
using our global leadership in carbon management to advance a
lower-carbon world. Visit oxy.com for more
information.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains forward-looking statements that
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 the
results to differ include, but are not limited to: the scope and
duration of the COVID-19 pandemic and actions taken by governmental
authorities and other third parties in response to the pandemic;
Occidental’s indebtedness and other payment obligations, including
the need to generate sufficient cash flows to fund operations;
Occidental’s ability to successfully monetize select assets and
repay or refinance debt and the impact of changes in Occidental’s
credit ratings; assumptions about energy markets; global and local
commodity and commodity-futures pricing fluctuations; supply and
demand considerations for, and the prices of, Occidental’s products
and services; actions by the Organization of the Petroleum
Exporting Countries (OPEC) and non-OPEC oil producing countries;
results from operations and competitive conditions; future
impairments of our proved and unproved oil and gas properties or
equity investments, or write-downs of productive assets, causing
charges to earnings; unexpected changes in costs; availability of
capital resources, levels of capital expenditures and contractual
obligations; the regulatory approval environment, including
Occidental’s ability to timely obtain or maintain permits or other
governmental approvals, including those necessary for drilling
and/or development projects; Occidental’s ability to successfully
complete, or any material delay of, field developments, expansion
projects, capital expenditures, efficiency projects, acquisitions
or dispositions; risks associated with acquisitions, mergers and
joint ventures, such as difficulties integrating businesses,
uncertainty associated with financial projections, projected
synergies, restructuring, increased costs and adverse tax
consequences; uncertainties and liabilities associated with
acquired and divested properties and businesses; uncertainties
about the estimated quantities of oil, natural gas liquids and
natural gas reserves; lower-than-expected production from
development projects or acquisitions; Occidental’s ability to
realize the anticipated benefits from prior or future streamlining
actions to reduce fixed costs, simplify or improve processes and
improve Occidental’s competitiveness; exploration, drilling and
other operational risks; disruptions to, capacity constraints in,
or other limitations on the pipeline systems that deliver
Occidental’s oil and natural gas and other processing and
transportation considerations; general economic conditions,
including slowdowns, domestically or internationally, and
volatility in the securities, capital or credit markets; inflation;
uncertainty from the expected discontinuance of LIBOR and
transition to any other interest rate benchmark; governmental
actions and political conditions and events; legislative or
regulatory changes, including changes relating to hydraulic
fracturing or other oil and natural gas operations, retroactive
royalty or production tax regimes, deepwater and onshore drilling
and permitting regulations and environmental regulation (including
regulations related to climate change); environmental risks and
liability under federal, regional, state, provincial, tribal, local
and international environmental laws and regulations (including
remedial actions); Occidental’s ability to recognize intended
benefits from its business strategies and initiatives, such as Oxy
Low Carbon Ventures or announced greenhouse gas reduction targets;
potential liability resulting from pending or future litigation;
disruption or interruption of production or manufacturing or
facility damage due to accidents, chemical releases, labor unrest,
weather, power outages, natural disasters, cyber-attacks or
insurgent activity; the creditworthiness and performance of
Occidental’s counterparties, including financial institutions,
operating partners and other parties; failure of risk management;
Occidental’s ability to retain and hire key personnel;
reorganization or restructuring of Occidental’s operations; changes
in state, federal or international tax rates; and actions by third
parties that are beyond Occidental's control. Words such as “will,”
“goal,” “target” or similar expressions that convey the prospective
nature of events or outcomes are generally indicative of
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of this news
release. Unless legally required, we undertake no obligation to
update, modify or withdraw any forward-looking statements as a
result of new information, future events or otherwise. Factors that
could cause actual results to differ and 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, 2020, and in Occidental’s
other filings with the U.S. Securities and Exchange Commission.
Contacts
Media |
Investors |
Eric Moses |
Jeff Alvarez |
713-497-2017 |
713-215-7864 |
eric_moses@oxy.com |
jeff_alvarez@oxy.com |
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