Thursday, October 20, 2005

Occidental announces Vintage Petroleum deal The step-by-step consolidation of the oil industry proceeds on apace. US-based Occidental Petroleum has announced that it will purchase US-based Vintage Petroleum in a $4 billion deal. Occidental is the #4 US oil company in terms of market value. Vintage is also headquartered in the US, and has reserves in California, Argentina, and the Middle East, areas where Occidental already has operations. Occidental is spending big for the assets, but the like other petroleum companies, it would rather use its increasing cash flow to buy out identified oilfields rather than to explore new sources. Other companies making similar moves this year are NorskHydro, Chevron, Gazprom, and Chesapeake. 12:44:02 PM

comment []