Occidental Petroleum Corp. said it plans to invest $1.1 billion as part of a partnership with SandRidge Energy that could expand Oxy's Permian Basin production by at least 50,000 barrels of oil per day within the next five years.

The partnership would develop a West Texas hydrocarbon gas processing plant and related infrastructure that would provide carbon dioxide that Oxy can use to get oil out of older or hard-to-recover areas.

Oxy is the largest oil producer in the Permian Basin, with a 16 percent net share of that region's total production. Oklahoma City-based SandRidge's high carbon dioxide-content natural gas would also be processed at the new Oxy plant in Pecos County, Texas.

Occidental shares were up $1.64, or 1.8 percent, to $90.10 in mid-day trading on the New York Stock Exchange.

For reprint and licensing requests for this article, CLICK HERE.