• 13 hours The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 7 days "And this is perhaps the most dangerous kind of government there can be."
  • 2 days Demonising fossil fuels has caused major grid problem in Australia
  • 1 day "...too many politicians believe things that aren’t true." says Robert Rapier
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 328 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 6 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Why Is The United States Still Exporting Fuel?

Why Is The United States Still Exporting Fuel?

The U.S. national average price…

API Offers 10-Point Plan To Unleash Energy, Fuel Recovery

API Offers 10-Point Plan To Unleash Energy, Fuel Recovery

The American Petroleum Institute has…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Crash Could Cost This Shale Giant Up To $9 Billion In Impairment Charges

  • Occidental Petroleum expects to book after-tax impairments of up to US$9 billion of its oil and gas assets in the second quarter due to the collapse in oil prices earlier this year.
  • Currently, Oxy estimates that this impairment will range between US$6 billion and US$9 billion after-tax in Q2, but warned that further write-offs could be considered if the current weak prices and macroeconomic conditions persist.

Occidental Petroleum expects to book after-tax impairments of up to US$9 billion of its oil and gas assets in the second quarter due to the collapse in oil prices earlier this year, the company said in an SEC filing on Thursday.

Like all other oil firms everywhere in the world, Occidental is struggling with the weak oil and gas prices, which impact the value of its proved and unproved oil and gas reserves.    

“The impairment estimate is primarily attributable to the expected prolonged period of lower commodity prices brought on by lower oil demand as a result of the impacts of the COVID-19 pandemic to the worldwide economy,” the company said.

Currently, Oxy estimates that this impairment will range between US$6 billion and US$9 billion after-tax in Q2, but warned that further write-offs could be considered if the current weak prices and macroeconomic conditions persist.

“If the macro-economic conditions that exist as of the date of this prospectus supplement continue or worsen, our oil and gas properties may be subject to further testing for impairment, which could result in additional non-cash asset impairments, and such impairments could be material to our financial statements,” Occidental said in its announcement.

Oxy warned that if current market conditions persist for an extended period of time, it might not be able to complete planned divestments “on favorable terms, in a timely manner or at all.”  

Earlier this month, Occidental was said to be considering a sale of oil and gas assets in Oman to reduce its debt burden.

Last month, Total backed out of buying Occidental’s assets in Ghana, after a snag in the sale of assets in Algeria as part of the Occidental-Anadarko deal last year.

The collapsed deal was another blow to Occidental, which was relying on the sale of Anadarko’s African assets to receive a total of US$8.8 billion that could partially reduce the huge debt it had accumulated to buy Anadarko in what analysts now see as an ill-timed decision to pursue such a huge and leveraged transaction. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News