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Wednesday, Feb 21, 2024

Occidental Wins Major Bahrain Contract

Occidental Petroleum Corp beat two competitors to win a rare contract from Bahrain to expand production from an aging 36,000 barrel-a-day onshore oil field.

The final contract will be signed in April after receiving parliamentary approval, said Oil Minister Abdul Hussain bin Ali Mirza, according to media reports Tuesday. The contract would give Occidental a share of production if it manages to boost output from the field above a target figure.

Bahrain hasn’t found new oil deposits for 75 years, and this field was discovered in the early 1930s. Oxy had said it will use enhanced oil recovery techniques to boost crude output from the field.

Los Angeles-based Occidental already has contracts to develop other zones covering most of Bahrain’s territorial water.

Occidental shares were up $1.86, or 3.5 percent, to $56.20 in morning trading on the New York Stock Exchange.

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