Occidental discovers oil at Bandit prospect in U.S. Gulf

(WO) — Occidental Petroleum (Oxy) has reported an oil discovery at the Bandit prospect in the U.S. Gulf of America/Mexico, encountering oil-bearing sands in a key deepwater exploration area offshore Louisiana.

The exploration well, located in Green Canyon Block 680 about 125 miles south of the Louisiana coast, encountered high-quality oil in Miocene formations. The company and its partners are evaluating results to determine development options.

Occidental operates the prospect with a 45.375% working interest. Partners include Chevron U.S.A. Inc. (37.125%) and Woodside Energy (17.5%).

The discovery is located near existing infrastructure, creating the potential for a subsea tieback to nearby Occidental-operated facilities. Such an approach could support a lower-cost development pathway if further appraisal confirms commercial volumes.

“Occidental is focused on strengthening our Gulf of Mexico portfolio,” said Jeff Simmons, senior vice president, subsurface technology and chief petrotechnical officer. “We believe this discovery demonstrates the continued importance of the Gulf as a reliable source of domestic oil supply.”

The Gulf of America/Mexico remains a core region for U.S. offshore exploration and development, with operators targeting tieback opportunities to maximize returns from new discoveries. Occidental said the Bandit results will be further analyzed as the partnership determines next steps for the project.

Pictured above: Oxy's Heidelberg spar operating in the deepwater U.S. Gulf. The new Bandit oil discovery has potential for tiebacks to Oxy's exisiting operating facilities.