Occidental Petroleum Acquires Agip Petroleum's Interests for $195 Million

Occidental Petroleum Corp., a major oil and gas player, has agreed to purchase all interests of Agip Petroleum Co. Inc. in 17 Gulf Coast oil and gas properties for a substantial $195 million. The acquisition, which includes estimated proved and probable reserves of 204 billion cubic feet (Bcf) of natural gas equivalent, marks a significant expansion of Occidental's domestic production capabilities.

The company plans to fund half of the purchase price in cash, while the remaining half will be settled in Occidental common stock. This move highlights Occidental's commitment to strengthening its presence in the Gulf Coast region, a critical area for oil and gas exploration and production. The acquisition will add approximately 50 million cubic feet per day (MMcfd) of natural gas production and 3,500 barrels per day (b/d) of oil output to Occidental's current domestic production.

Key Takeaways:

• Occidental Petroleum Corp. has agreed to buy all of Agip Petroleum Co. Inc.'s interests in 17 Gulf Coast oil and gas properties for $195 million.
• The purchase will be split equally between cash and Occidental common stock, with 5.53 million shares to be transferred.
• The acquired properties contain an estimated 204 Bcf of natural gas equivalent, with 80% of the reserves being natural gas.
• The company does not expect significant capital spending, as most reserves are fully developed.
• Operation of the new properties will continue to be contracted out, with no changes anticipated.
• The acquisition adds approximately 50 MMcfd of natural gas production and 3,500 b/d of oil output to Occidental's current domestic production.
• Oxy USA Inc., Occidental's domestic production subsidiary, averaged net output in 1993 of 600 MMcfd of gas and 58,000 b/d of oil.

Statistics:

• $195 million: the purchase price for Agip Petroleum Co. Inc.'s interests in 17 Gulf Coast oil and gas properties.
• 204 Bcf: estimated proved and probable reserves of natural gas equivalent in the acquired properties.
• 80%: the percentage of reserves being natural gas in the acquired properties.
• 5.53 million: the number of shares of Occidental common stock to be transferred as part of the purchase.
• 17: the number of properties acquired by Occidental.
• 1993: the year in which Oxy USA Inc. averaged net output of 600 MMcfd of gas and 58,000 b/d of oil.

Sources:

- Occidental Petroleum Corp. press release.