After exploring its options, Occidental Petroleum Corp. of LosAngeles agreed to sell for C$29.61/share its 29.2% stake inCanadian Occidental Petroleum Ltd. for gross proceeds of C$1.2billion Canadian. Occidental expects after-tax net proceeds to beUS$700 million and to report a gain of US$300 million.

Of Occidental’s 40.2 million CanOxy shares, 20.2 million will besold to the Ontario Teachers Pension Plan Board. The remaining 20million will be sold to CanOxy.

Occidental also agreed to exchange interests of equal value incertain oil and gas and chemicals operations with CanOxy.Occidental will receive CanOxy’s 15% interest in Occidental’s oiland gas operation in Ecuador, giving Occidental 100%. CanOxy willreceive Occidental’s 15% interest in CanOxy’s sodium chlorateoperations in Canada and Louisiana.

The transactions are subject to approval by CanOxy stockholdersand Canadian and U.S. regulators.

Occidental began reviewing its investment in CanOxy in July (seeDaily GPI, July 29). Occidental’sinvestment in CanOxy of Calgary dates back to 1971. CanadianOxy’sboard formed an independent committee to consider proposals. AnOccidental spokesman would not comment further on the sale.

In January 1999 CanadianOxy said it laid off 112 staffers in acorporate restructuring due to the sale of more than a billiondollars of non-core assets as well as reduced capital investment inresponse to low oil prices. The layoffs included 66 staff inCalgary. Over the previous two years, CanadianOxy had sold assetsworldwide, including significant dispositions in Canada.

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