• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 15 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South

Occidental Considers Selling Off Middle East Oil & Gas Assets

Occidental Petroleum may be considering a sale of oil and gas assets in Oman to reduce its debt burden, unnamed source familiar with the matter told Bloomberg.

The assets could fetch over $1 billion, the sources added.

Occidental has a debt load of some $40 billion, most of which it took on last year when it bought sector player Anadarko in what now many see as one of the worst-timed acquisitions in history, finalized just months before oil prices tanked. About $11 billion of this debt matures by 2022 and the company is actively seeking ways to conserve and generate cash.

The acquisition cost Oxy some $55 billion and aimed at expanding its presence in the U.S. shale patch, which got battered by the oil price crash. Because of the unfortunate timing of its acquisition of Anadarko, Oxy has become one of the worst-affected oil players in the United States. Asset sales, one of the usual means of reducing significant debt loads, will fetch a lot less than before the crisis if they go through at all.

Occidental has interests in three oil fields in Oman as well as assets in the United Arab Emirates and Qatar’s North Field, the largest gas deposit in the world. It is, however, not the only one selling assets in the Middle East. Earlier this month, Bloomberg reported BP was selling about 10 percent in the Khazzan gas field in Oman, looking to get more than $1 billion for it.

Improving oil priced could help such divestments go through and help reduce debt loads. Meanwhile, Oxy has cut its capital spending program for his year by over 50 percent, outdoing its competitors in the cuts. The company said in May it planned to spend just $2.4-2.6 billion in capex this year, and cut costs by some $1.2 billion.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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