Oxy said to exit Bakken shale

USA

BISMARCK, October 16, 2015 – Occidental Petroleum will reportedly sell its North Dakota acreage and assets to private equity fund Lime Rock Resources.

Industry sources told Reuters that the deal has been struck for around $500 million.

Occidental’s withdrawal from the Bakken shale would mark the first such move from a major oil company.

The assets had previously been valued for sale at $3 billion, but the downturn in oil prices has altered the landscape for the deal.

Occidental Petroleum is the fourth-largest US oil company and has operations in countries such as Oman and Colombia, where it will redirect spending, the report said.

Lime Rock, based in Texas, has investments in multiple US shale plays. The fund is expected to restructure business to lower operational costs at its newly acquired assets.

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