• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour Solving The Space Problem For America’s Solar Industry
  • 20 hours Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days Investment in renewables tanking
  • 4 days If hydrogen is the answer, you're asking the wrong question
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 4 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
Oil Prices Climb As Default Fears Fade

Oil Prices Climb As Default Fears Fade

Oil prices started the week…

Occidental Petroleum Looks To Sell Pipeline Assets For $5B

Occidental Petroleum hopes to raise more than US$5 billion as it is exploring the potential sale of its pipeline assets, Reuters reported on Tuesday, quoting people familiar with the plans.

Through the possible sale of its pipeline business, Occidental Petroleum will be looking to free up capital for more investment in exploration and production to take advantage of the rising oil prices.

According to Reuters’ sources, Occidental is working with investment banks on an auction for its pipeline assets.

Occidental’s midstream assets include the Centurion Pipeline in the Permian—a common-carrier oil pipeline and storage system with approximately 2,900 miles of pipeline and 7.1 million barrels of storage capacity. Occidental also has an equity interest in the General Partner of Plains All-American Pipeline.

Occidental also owns the Oxy Ingleside Energy Center (OIEC) Terminal at the Port of Corpus Christi in Ingleside, Texas, a crude oil storage and export terminal that provides access to international and domestic markets. The terminal has approximately 2.1 million barrels of total oil storage capacity and throughput capacity of 300,000 bpd.

Related: Can China Replicate The U.S. Shale Boom?

The takeaway capacity bottlenecks that have recently emerged in the Permian and the growing U.S. crude oil exports could help Occidental fetch top dollar for its midstream assets, according to Reuters’ sources.

Last year, Occidental tried to sell its stake in the Ingleside Energy Center. The crude oil storage and export terminal is included in the package of midstream assets that Occidental is looking to sell now, one of the sources told Reuters.

If it manages to sell the pipeline assets, Occidental will become the latest U.S. oil company to have divested pipeline assets, looking to capitalize on potentially high valuations for midstream assets as takeaway capacity constraints start to weigh on oil production growth in the Permian. Hess Corporation and Oasis Petroleum are two of the companies that have spun off or divested pipeline assets over the past year.


By Tsvetana Paraskova 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