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The US energy company Occidental Petroleum, a major player in the Permian shale basins, expects a "shift" in production growth in the Middle East in the coming years, while looking for opportunities downstream of the region.
"As our company grows with current production in the Permian Basin, we anticipate that over time this will change and that our operations here in the Middle East will experience increased growth," said Vicki Hollub, Executive Director. of Occidental Petroleum The National in an interview in Abu Dhabi.
Headquartered in Houston, Occidental Petroleum is the largest player in the Permian Basin, the largest shale basin in the United States, with an average production of 3.831 million barrels in January, according to Energy. Information Administration. Occidental, which operates in the Middle East and Latin America, currently sees less than half of its production coming from its international activities.
The downstream sector is a new area of interest for the Middle East energy company. National oil companies in the United Arab Emirates and Saudi Arabia have made multi-billion dollar investment commitments. Occidental Petroleum has been awarded Sunday a block down by the national oil company of Abu Dhabi, for a participation fee of 893 million dirhams ($ 244 million).
The US company will hold a 100% interest in Block 3 onshore block 3 at the exploration phase as part of its 35-year concession agreement.
Hollub is considering opportunities to expand the downstream partnership following the recent sale of interests in Adnoc's refining units to existing upstream partners Eni and OMV in Italy and Austria.
"We are looking down here in the Middle East," she said. "We like the fact that Dr. Sultan [Al Jaber, Adnoc Group chief executive] in Abu Dhabi, he wants to take the entire value chain and convert it into value for the country. We support that. "
Western, which also has significant chemical activity in North America in the areas of polyvinyl chloride (PVC) resins, chlorine and caustic soda, finds applications in the plastics and petrochemical industries and will explore synergies possible in the Middle East.
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"We export products from the United States to other markets, so we have the impression that we could possibly [that] here in the Middle East, "Ms. Hollub said.
Another opportunity for the North American company, which has an export capacity of 450,000 barrels per day in the United States, is the opportunity to enter the Middle East trade – an increasingly interesting segment for state-supported energy companies in the region.
Following the sale of interests in its refining unit last month, Adnoc invited its downstream partners Eni and OMV to create a three-way joint venture.
"Exports are made both in Asia and in Europe. So we sell oil in both places. Marketing here in the Middle East is something we have done in the past and we are going to find the best way to get value for our products, "Ms. Hollub said.
The company is currently in "transition phase" with Qatar Petroleum for the exit of Idd El-Shargi field, scheduled for October, she said.
Occidental remained interested in "other opportunities" upstream of Abu Dhabi, but declined to comment in detail. "We do some things internally," she said.
Elsewhere in the Middle East, Western will continue to advance the development of exploration in blocks 9, 27 and 30 in Oman after the completion of the 3D seismic badessment.
Last Updated: February 3, 2019 12:24
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