Occidental Petroleum to Shed Argentina Operation, Buy US Assets
December 13, 2010
The Associated Press reports, Occidental Petroleum Corp. said it will sell its operation in Argentina and focus more on U.S.-based oil and gas fields in separate deals worth billions of dollars. The California-based company said it will buy several assets in the U.S. from Royal Dutch Shell and a private owner for a combined $3.2 billion. Shell''s south Texas fields are worth about $1.8 billion. They currently produce about 200 million cubic feet per day of gas equivalent. Occidental also will buy from a private seller about 180,000 acres in North Dakota for $1.4 billion. Occidental said it would sell its oil and gas operations in Argentina for $2.5 billion to Sinopec Group, China''s biggest oil refiner. Sinopec, a subsidiary of China Petrochemical Corp., will be making its first venture in Argentina with the purchase. The state-owned company said it wants to diversify its oil and gas producing assets to reduce surging costs from importing crude oil for refining.