According to Reuters, Occidental Petroleum is the latest US oil company looking to shed assets, hoping to fetch more than US$5 billion, because of the capital expenditure needed to maintain US pipelines.
Occidental’s decision to shed the assets is the latest example of an oil company balking at the capital expenditure required to maintain US pipelines, which have been plagued by bottlenecks and require construction of new networks. Hess and Oasis Petroleum already sold or spun off pipelines in the past year.
Occidental’s midstream assets include a major US crude pipeline, a stake in a gas pipeline in the Middle East, a crude export terminal in Texas, and the Centurion Pipeline—a 2,900 mile (4667 kilometer) line carrying crude from the Permian Basin of West Texas and New Mexico to Cushing, Oklahoma.
Full Content: Reuters
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