Occidental Signs Deal to Develop Oman Fields

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Occidental Petroleum Corp. said Monday it will partner with Mubadala Development Co. of Abu Dhabi and the Sultanate of Oman to develop existing oil and gas fields and explore for new discoveries in Oman.

The deal gives Los Angeles-based Occidental, which will serve as the operator of the fields, a 48 percent interest in the project. Abu Dhabi-based Mubadala holds a 32 percent interest and the Oman Oil Co. holds the remaining 20 percent.

The 20-year agreement covers a 2,269 square kilometer area. The companies said they expect to invest $500 million in the project over the next four years. Production is expected to begin in 2010 and reach a plateau of 27,500 barrels of oil equivalent per day. Occidental’s net share is expected to be about 10,000 barrels of oil equivalent per day.

“Signing this (agreement) is another important step in the implementation of our growth strategy within the region,” said Chief Executive Ray Irani in a statement.

Occidental shares were up $4, or 8.5 percent, to $51.01 in morning trading on the New York Stock Exchange.

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