By Anthony DiPaola Aug 24, 2014 11:12 AM ET
Occidental Petroleum Corp. (OXY) is in talks to sell a $3 billion stake in a gas field to Abu Dhabi-owned Mubadala Development Co., Petroleum Intelligence Weekly reported, without saying where it got the information.
The companies are discussing the sale of as much as 30 percent of the $10 billion Shah natural gas project in the United Arab Emirates, the newsletter reported. Two officials at Mubadala’s media department didn’t immediately respond to voice messages seeking comment. Melissa Schoeb, a spokeswoman for Occidental, declined to comment when contacted by e-mail.
Oxy, as the U.S. oil producer is known, is working with state-run Abu Dhabi National Oil Co. to develop the Shah field, with production to begin at the end of the year. The U.A.E. is tapping the reserve of sour gas, fuel with a high content of deadly sulfur dioxide, to meet domestic demand for the hydrocarbon used to run power plants and feed chemical facilities.
Oxy, based in Houston, is trying to sell some Middle East assets individually after failing earlier this year to cut 40 percent of its operations in the region, people familiar with the situation said last month.
A transaction on the Shah project could be completed by the end of this year, with Oxy retaining part of its 40 percent stake and continuing to operate the field, PIW reported. Adnoc would retain its 60 percent holding in the project in a deal that would mark Mubadala’s first domestic investment in oil or gas production, PIW said.
Oxy is also seeking to sell part of its stake in Dolphin Energy Ltd., a venture that operates a pipeline transporting gas from Qatar to the U.A.E. and Oman, PIW said. Mubadala owns 51 percent of the Dolphin gas pipeline project, with Total SA (FP) and Oxy each holding 24.5 percent.
The U.S. company may also reduce its stake in an Omani oilfield project, PIW said.
pham , you are right in that Cramer has nothing to do with the oil supply demand. The fact is that Cramer is mostly wrong on his investment predictions.
Are you capable of thinking before posting or typing? How is Cramer bad news? Is he capable of changing supply-demand for oil, how about oil production, or oil prices? Here's an understatement, you're not very intelligent, are you?
the Iraq invasion, 9/11 cluelessness, wall street debacle, yeah you're right, i wish Bush could have been reelected for a 3rd term.
the Iraq invasion, 9/11 cluelessness, wall street debacle, yup, you right-wingers sure did a great job.
"Bush was not a bad POTUS" just destroyed any credibility you had, and you didn't have much to begin with.
The left drags politics into everything. You reap what you sew.
Vote Nov. 3 and get rid of every fascist Democrat up for election. Otherwise they will continue banning products, destroying our freedom and economy and our GOD given rights. VOTE!!!!
I would take Bush over Obama in a hot minute. The media destroyed Bush. Bush was not a bad POTUS. Obama is a VERY BAD POTUS.
I'm sure the president is losing a lot of sleep over what a bunch of idiots like you think, keep posting if it makes you feel important, please.
That's fine if it's part of your analysis, my point is leave it out of the forums, nobody needs to or wants to know your political beliefs. My boy didn't waste trillions of dollars, cost thousands of lives to invade Iraq, check mate. Go away.
Sorry, but politics, especially related to mid-east and environmental policies, has everything to do with oil investments. Bachus is right on. Just because your boy is messing up doesn't mean you can quash the discussion of it.
NEW YORK (RealMoney) -- Where she stops, does anyone know? I am talking about the unexpected breakdown of oil that seems to have breached levels that I know very few thought would be taken out.
The selloff in these names, a selloff that is now reaching every single company's stock in a violent fashion, signals to me that people fear a huge breakdown from these levels.
I think that there were many longs betting that some of the turmoil overseas would impact supply. Instead it's impacted demand!
In the meantime, we keep pumping and pumping and it's getting a little claustrophobic.
Still, the higher-yielding oils are coming down to their fixed-income equivalent levels. They are getting very attractive for those of us trying to accumulate positions over time, as we have been in Action Alerts PLUS.
But we don't have any of the high fliers any more, having offloaded them into strength, taking some terrific gains.
Nonetheless, I think it's almost time. These stocks are in some incredible paroxysms of pain and I think it's time that you try to figure out which domestic companies might be getting interesting again.
I still like Apache (APA) , Anadarko (APC) and EOG (EOG) and would love to see Marathon (MPC) and Occidental (OXY) go lower. But the higher yielders? I think these are very attractive levels to start grabbing some if you haven't already.
you're right, the last conservative guy was so much better. seriously, leave the politics out of these forums.
Oil will go sky-high as war gets worse in Mid-east bank on it. Vote all GOP come Nov.3, 2014 and take the country back from liberal democrat fools.
There is a article now on the subject. 80% of the 5 billion is paid out to current OXY shareholders. CRC is funding that dividend to OXY through debt, and you are correct. I am seriously thinking about selling all CRC on first trading day, and still letting the $12.62 reinvest back into OXY. I don't think I want to own CRC, until it proves itself, and investment grade rating improves, Have to wait 18 months or so I think? GL
BUY OXY TODAY, I added!