Occidental to sell units of Anadarko to cut debt


Few weeks after its dramatic acquisition of Anadarko, Occidental Petroleum is looking to sell some non-profitable units in its newly acquired company.

Last month, Occidental knocked out Chevron Corporation in the bid to acquire Anadarko.

Apparently, the acquisition of Anadarko has increased its debt levels to the region of $40 billion, according to data compiled by Reuters.

Deal-makers told Reuters that Chief Executive Vicki Hollub’s ‘most likely sale prospects are Anadarko’s offshore assets in the Gulf of Mexico and its pipeline business. Her challenge will be to balance such sales with the need for their cash flow to pay debt and dividends.’

Hollub already has one big sale lined up: France’s Total SA agreed to pay $8.8 billion for Anadarko’s oil-and-gas producing assets outside the United States, including its biggest future expense, a multibillion-dollar liquefied natural gas project in Mozambique.

Occidental has not commented on the matter.

Estimates from analysts put the company’s cost savings and sell off targets to reach up to $3.5 billion.