September 26, 2008

Occidental to Buy Out Oil Field Partner for 1.25 Billion USD

Occidental to buy out oil field partner for 1.25 billion USD

LOS ANGELES, Sept. 25 (Xinhua) -- Oil giant Occidental Petroleum Corp. said Thursday it will buy out a partner's stakes in two jointly operated oil and gas fields in U.S. Midwest for 1. 25 billion U.S. dollars.

The fields produce about 13,000 barrels of oil equivalent per day, and have about 92 million barrels in proved reserves, said the Los Angeles-based company in a statement.

Occidental currently operates the two fields jointly with Plains Exploration and Production Co.

The acquisition, which is expected to close later this year, follows deals last December in which Occidental paid 1.55 billion dollars for 50 percent stakes in the Permian Basin of West Texas and New Mexico and Piceance Basin of Colorado.

The sale will reduce Plains' corporate debt by at least 1 billion dollars and allow it to cut next year's capital spending to 1.35 billion dollars, according to Houston-based Plains Exploration.

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