Occidental seeking to sell North Dakota oil assets for $3 billion

Occidental Petroleum Corp.,  the U.S. oil producer that is restructuring to focus on its most profitable operations, is seeking to sell oil assets in North Dakota for as much as $3 billion, people with knowledge of the matter said.Occidental is working with investment bank Tudor Pickering Holt & Co. to sell about 335,000 net drilling acres in the Williston Basin, said the people, who asked not to be identified because they were discussing private information. The holdings include a part of North Dakota’s Bakken formation, an area that has been less successful for Occidental because of higher costs, though it’s one of the fastest-growing oil-producing regions in the U.S.“This is mostly undeveloped acreage,” Pavel Molchanov, an analyst at Raymond James & Associates Inc., said today in a telephone interview. “In the context of Occidental, this is definitely not core acreage. The company has not historically played in the Bakken.”The $3 billion potential price tag is possible to achieve, although it depends on the quality of Occidental’s land and whether it’s in the formation’s “sweet spot,” Molchanov said.

via Occidental seeking to sell North Dakota oil assets for $3 billion – Drilling – Ohio.

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