Occidental Signs Bahrain Agreement

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Occidental Petroleum Corp said Monday that it had signed an agreement with the National Oil and Gas Authority of Bahrain for further development of the Bahrain Field, which is expected to cost $1.5 billion over five years

Under the development and production sharing agreement, a joint operating company comprised of Occidental and its partner, Abu Dhabi’s Mubadala Development Co., will work with the Bahrain authority to increase production at the field.

The partners hope to raise output to a peak of 100,000 barrels of oil a day from the current 35,000 barrels, reaching 75,000 barrels a day within five years. Occidental will hold a 48 percent interest in the project, Mubadala a 32 percent interest and a subsidiary of the authority the remaining 20 percent, the Los Angeles oil and gas development company said.

“Signing this (agreement) is another important step in the implementation of our growth strategy in the Middle East,” Chief Executive Ray Irani said in a statement. The company first announced negotiations were underway last month.

Occidental shares were down $1.16, or 2 percent, to $54.68 in midday trading on the New York Stock Exchange.

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