Occidental Decides Not To Pursue Contract Extension For Project Offshore Qatar

Occidental Petroleum Corp. (NYSE:OXY) said on Oct. 15 it will not pursue an extension for the Idd El-Sharghi North Dome (ISND) Field offshore Qatar, which is set to expire in October 2019, the company said in a news release.

“Consistent with our strategy, our intent is to redeploy our capital and human resources to projects where we can deliver the highest returns for our shareholders,” Occidental CEO Vicki Hollub said in the release.

The company said a major infrastructure investment would have been required under an extension, which would have lowered Occidental’s estimate for free cash flow for the project to about $70 million annually for the first five years. This compared to a less than $300 million free cash flow estimate for the project in 2018 with production of 51,000 barrels of oil equivalent per day, prior to adjustment for foreign tax barrels, the company said in the release.