Occidental Petroleum Corp. reported a $28 million increase innet income for the second quarter compared with 2Q97. Resultsreflected a $290 million pretax gain from the sale of certain oiland gas assets. Earnings before special items were $47 million forthe second quarter of 1998, compared with $138 million for the sameperiod in 1997, reflecting lower crude oil prices.
“Since completion of the October 1997 asset redeploymentprogram, Occidental has been focused on the development of ElkHills. The Elk Hills gas pipeline was completed in late June andcurrent net gas sales from Elk Hills are at an initial rate of 250MMcf/d,” said CEO Ray R. Irani. “The oil development program is onschedule and we will drill 100 wells this year. Our productionstarted at 50,000 b/d in February and we expect to end 1998 withnet oil and natural gas liquids production from Elk Hills at 62,000b/d. We are on schedule to achieve our net 80,000 b/d target forthe year 2000.”
Oil and gas divisional earnings before special items were $90million for the second quarter of 1998, compared with $139 millionfor the second quarter of 1997. Chemical divisional earnings beforespecial items for the second quarter of 1998 were $90 million,compared with $189 million for the same period of 1997.
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