Occidental Petroleum Confirms it Will No Longer Pursue Contract Extension for Idd El-shargi North Dome Offshore Field in Qatar

Source Press Release
Company Occidental Petroleum Corporation 
Tags Upstream Activities, Strategy - Upstream, Strategy - Corporate
Date October 15, 2018

Occidental Petroleum Corporation (NYSE:OXY) today confirmed it will no longer pursue the extension of the Idd El-Shargi North Dome (ISND) offshore field in Qatar, which expires in October 2019.

“We have been honored to partner with Qatar Petroleum for more than 20 years on the development of the ISND field. During our operatorship, we have significantly increased production while being recognized as a leader in safety performance and the lowest-cost offshore oil operator in the country,” said President and Chief Executive Officer Vicki Hollub. “Consistent with our strategy, our intent is to redeploy our capital and human resources to projects where we can deliver the highest returns for our shareholders.”

2018 Free Cash Flow (FCF) for ISND is estimated to be less than $300 million with production of 51,000 barrels of oil equivalent per day, prior to adjustment for foreign tax barrels. Occidental intends to have the production and cash flow from the ISND contract replaced in 2020 from its ongoing development program and reallocation of 2019 capital from ISND. Due to the major infrastructure investments that would have been required under an extension, the company’s estimate for FCF was approximately $70 million annually for the first five years.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd