Occidental Sells MidCon
To help pay for its $3.65 billion acquisition of the Elk Hills Naval Petroleum Reserve, Westwood-based Occidental Petroleum Corp. announced last year that it would sell its MidCon Corp. natural gas pipeline network one of the nation’s largest for $3.49 billion.
Oxy put the MidCon subsidiary up for sale in October, about the same time it submitted its winning bid to acquire the Elk Hills reserves.
KN Energy Inc. emerged in December as MidCon’s buyer, in a deal expected to close in the first quarter of 1998.
Based in Lombard, Ill., MidCon posted sales of $2.6 billion in 1996, accounting for about a quarter of Occidental’s total revenues. The subsidiary delivers about 2.3 trillion cubic feet of gas a year roughly 10 percent of the nation’s total over a 15,800-mile pipeline network.
Oxy officials said the MidCon sale was designed to focus Oxy’s efforts on its oil and gas exploration and production and its chemical business.