Summary
Occidental Petroleum Corporation (OXY) announced the completion of its acquisition of a 24.5 percent interest in the significant $3.5 billion Dolphin Project and Dolphin Energy Limited (DEL) on November 26, 2002. This strategic move, costing OXY $310 million plus $32 million for historical costs, grants the company a stake in a major natural gas development and export pipeline project in the Middle East. The Dolphin Project involves developing natural gas and condensate in Qatar's North Field and constructing a 260-mile pipeline to supply the UAE with 2 billion cubic feet of dry natural gas per day for 25 years, with construction slated to begin in 2003. In addition to this substantial project acquisition, the filing also disclosed that OXY's Chairman and CEO, Dr. Ray R. Irani, and a related trust have established a Rule 10b5-1 trading plan. This plan allows for the orderly sale of up to 300,000 shares of Occidental's common stock over the next 15 months. The shares represent a small portion of Dr. Irani's holdings and the company's outstanding shares, and the plan is designed to diversify holdings while adhering to SEC regulations for insider stock sales.
Key Highlights
- 1Occidental Petroleum completed the acquisition of a 24.5% interest in the $3.5 billion Dolphin Project and Dolphin Energy Limited (DEL).
- 2The total cost for OXY's stake in the Dolphin Project was $310 million, plus $32 million for historical costs.
- 3The Dolphin Project involves developing natural gas and condensate in Qatar's North Field.
- 4A key component is the construction of a 260-mile export pipeline to transport 2 billion cubic feet of natural gas daily to the UAE for 25 years.
- 5Construction for the pipeline is anticipated to commence in 2003.
- 6OXY's Chairman and CEO, Dr. Ray R. Irani, and a trust established a Rule 10b5-1 trading plan.
- 7The trading plan permits the sale of up to 300,000 shares of OXY common stock over 15 months to diversify holdings.