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Oxy acquires South Texas assets from Shell for US$1.8 billion

Oxy acquires South Texas assets from Shell for US$1.8 billion

Report summary

Oxy is to acquire assets in South Texas from Shell for US$1.8 billion. The gas-weighted assets produce 200 mmcfed from 550 wells targeting the Frio and Vicksburg formations. Oxy will also acquire associated midstream interests. Wood Mackenzie values the upstream assets at US$1.6 billion (NPV10, discounted to 1 January 2011). This deal represents another step in Oxy's wider move to re-focus its long-term strategy domestically. The US$5.3 billion of US asset acquisitions in 2010 is ...

What's included?

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  • Oxy acquires South Texas assets from Shell for US$1.8 billion PDF - 353.05 KB 6 Pages, 6 Tables, 1 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
    • Occidental
    • Shell
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Implied Long-term Gas Price sensitivities adjusted for value of midstream component *
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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