OXY USA Buys Shell Gas Fields
Shell (NYSE:RDS.A) has announced an agreement between itself and OXY USA, Inc., a subsidiary of Occidental Petroleum Corp. (NYSE:OXY), to sell a group of its gas fields located in south Texas to OXY USA, Inc., for approximately $1.8 billion. The sale will take effect on January 1, 2011, subject to regulatory approvals.
Shell stated that the sale is a further step in the company’s ongoing portfolio restructuring and focus on capital efficiency.
“We are concentrating our investment on the most promising growth opportunities and that means taking a hard look at existing assets like our fields in South Texas, where we have been active for more than 50 years,” said Marvin Odum, Director Upstream Americas. “This sale helps move us towards our goal of divesting $7-8 billion in assets worldwide in 2010 and 2011, and rationalizing our North American portfolio following on from recent acquisitions there.”
Occidental Petroleum Corporation (NYSE:OXY) shares are currently at $95.11, +2.07, an increse(2.22%).
Royal Dutch Shell plc (NYSE:RDS.A) shares are currently at $65.52, +0.52, a rise of (0.80%).