Oxy Selling Stake in Plains All American for $650 Million

Occidental Petroleum is in the process of cutting costs and focusing on debt reduction after buying Anadarko Petroleum for $30 billion and is now planning to sell its stake in Plains All American Pipeline for $650 million.

The company previously agreed to sell Anadarko's Africa assets to the French energy major Total for $8.8 billion, including a massive liquefied natural gas development and export project in Mozambique. It is also considering to sell assets in the deepwater Gulf or in Colorado's DJ Basin, where Anadarko was the leading producer, energy analysts said.

Oxy is taking on roughly $40 billion in debt to complete this deal, including loans and Anadarko's existing debt load, while making a bet on relatively healthy oil prices going forward. Anadarko is also considering selling at least a stake in Anadarko's pipeline spinoff firm, Western Gas Partners and Oxy's stake in Western is estimated at $7 billion or so.

Source:
chron