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Occidental says $8B Middle East deal is being delayed by political tension

  • Occidental Petroleum’s (OXY) attempt to raise as much as $8B by selling a stake in its Middle East business is being stalled by regional disputes over the Muslim Brotherhood, CEO Steve Chazen says.
  • OXY may need to break up the assets and sell them to individual countries because political tensions have made it too complicated to win agreement for a single sale to a consortium made up of Oman, the UAE and Qatar after the latter’s backing for the Brotherhood has drawn criticism from its neighbors in the region.
  • The three countries had formed a consortium late last year to buy as much as a 40% stake in OXY’s Middle East operations.
Comments (2)
  • rjj1960
    , contributor
    Comments (1359) | Send Message
     
    This is why you sell overseas assets and bring the money home. Buy reserves in the U.S or Canada, safer and no fear of Nationalization.
    26 Mar, 06:51 AM Reply Like
  • User 353732
    , contributor
    Comments (4785) | Send Message
     
    Companies such as OXY, MRO and even COP no longer have compelling competitive advantages in the ME , Africa and Central Asia. Uncompensated risk is rising and these companies are too small to absorb the costs of significant delay or creeping expropriation . North America offers far better risk/reward profiles for the next 10 years for independents.

     

    State owned , Chinese, Indian and European oil and gas companies will gradually become the dominant players in the ME and Africa because their strategic and financial objectives and pressures to perform volumetrically are quite different from those of American companies
    26 Mar, 02:01 PM Reply Like
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