Occidental Petroleum Corporation is currently holding advanced talks to sell its chemical division, Occidental Chemical Corporation (OxyChem), in a deal valued at $10bn, according to information relayed by people familiar with the matter. This transaction would represent the largest divestment undertaken by the US company as part of its disposals programme initiated over several years.
An accelerated deleveraging strategy
The proposed sale comes as Occidental Petroleum seeks to lighten its balance sheet, weakened by substantial debt accumulated following several acquisitions. The company is notably attempting to repay debt tied to the 2019 purchase of explorer Anadarko Petroleum for $55bn, as well as that incurred with the 2023 acquisition of shale producer CrownRock for $13bn.
According to the available information, the OxyChem sale agreement could be finalised in the coming weeks. Occidental Petroleum has so far made no official comment on the progress of this transaction.
A series of targeted disposals
Since 2020, Occidental Petroleum has undertaken a series of targeted divestments to strengthen its financial position. The potential sale of OxyChem, specialised in the production of chlorine, caustic soda and derivative products, would mark a significant step in this process. In August, the company had already sold four development assets in the Permian Basin, a strategic region for unconventional oil production in the United States.
OxyChem is a historically stable business within Occidental Petroleum’s portfolio, but its positioning outside the group’s core business could justify this disposal in the current context.
A repositioning centred on oil and gas
Occidental Petroleum’s strategic refocus on its upstream activities, mainly oil and gas production, reflects an intention to prioritise segments offering faster returns on investment. This repositioning also aims to reassure shareholders amid persistent crude price volatility and financing constraints in the markets.
The company, one of the largest shale oil producers in the United States, is continuing to optimise its asset portfolio, balancing deleveraging with a focus on high-return assets.
