Oxy bets on the Bakken (MarketWatch). The Motley Fool article on OXY/Bakken.
This story just broke about 10:30 a.m. EST, Friday, December 10, 2010.
Details:
- Oxy to sell interests in Argentina, to China Petrochemical Corp (Sinopec)
- Oxy will buy 180,000 acres in the Bakken and Three Forks formations in North Dakota from a private seller for $1.4 billion ($7,777/acre -- same "ballpark" as ERF and WMB recent purchases).
- Oxy is also a key player in ownership of Plains All American Pipeline, LP.
With regard to "Plains All American Pipeline LP," I posted the following in mid-November:
Plains All American Pipeline, L.P., today announced that it has entered into a definitive agreement with Nexen Holdings U.S.A. Inc. to purchase entities that hold crude oil gathering and transportation assets that primarily service Bakken area producers. Total consideration is estimated at $210 million, including approximately $170 million for the business and physical assets and approximately $40 million for approximately 400,000 barrels of inventory and other working capital adjustments. Subject to regulatory approval, the transaction is scheduled to close by year-end 2010.
The assets are primarily located in Northwestern North Dakota and Northeastern Montana and include: a lease gathering business that currently handles approximately 55,000 barrels per day; the Robinson Lake pipeline, a FERC regulated 20-mile, 8-inch pipeline that currently handles approximately 18,000 barrels per day; 8 truck terminals and various other contractual rights.
