BP, Occidental finalize details on exchange of assets

Posted: Tuesday, October 24, 2000

ANCHORAGE (AP) -- BP and Occidental Petroleum Corp. have reached an agreement that will give BP the remaining nine percent of the Milne Point field that it doesn't already own.

The move will give BP increased flexibility in developing Milne Point, said BP spokesman Ronnie Chappell.

''Oxy has been a good partner but things typically go more quickly when you don't have to consult with a partner,'' Chappell said.

As part of the deal, Occidental will acquire BP's interest in a carbon dioxide field in northeastern New Mexico. Occidental will use the carbon dioxide to enhance oil and gas recovery from recently acquired fields in west Texas.

Terms of the deal were not disclosed.

BP acquired its 91 percent interest in Milne Point in 1994. Since then, the company has invested nearly one billion dollars in the field and boosted daily production from less than 20-thousand barrels a day to more than 50-thousand barrels.

The company has also increased the estimated amount of oil it expects to recover from the field from 100 million barrels to more than 400 million.

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