Occidental finalizes $9.7-billion sale of OxyChem, sharpens oil and gas focus

Occidental has completed the sale of its chemical business, OxyChem, to Berkshire Hathaway for $9.7 billion in cash, subject to customary purchase price adjustments. 

The transaction marks a significant step in Occidental’s portfolio realignment as the company sharpens its focus on its core oil and gas assets. Occidental said the divestment will strengthen its balance sheet and support long-term value creation across its upstream operations.

As previously disclosed, an Occidental subsidiary—Environmental Resource Holdings, LLC—has retained OxyChem’s legacy tort claims and certain environmental liabilities related primarily to historical operations outside the footprint of the facilities sold. Glenn Springs Holdings, Inc. will continue to manage remediation activities at affected sites on behalf of the subsidiary.

Occidental said remediation expenditures are expected to continue over many years, in accordance with approved work plans.