Occidental Petroleum reports $70-million third-quarter loss from Hurricane Harvey


HOUSTON -- Occidental Petroleum Corporation announced third quarter 2017 business impacts of Hurricane Harvey as operations have returned to pre-storm levels. Overall, the storm caused minimal disruptions to operations and Occidental expects this one-time financial and production impact to be limited to the third quarter.

The company experienced Hurricane Harvey business impacts within the chemicals, midstream and Permian resources segments. Some chemicals and midstream operations suspended operations along the Gulf Coast, while Permian resources encountered third-party disruptions, impacting production due to gas processing and NGL delivery.

“We are very proud of our team’s efforts to safely enact our business continuity plans across impacted assets and manage our business during and after the storm,” said President and CEO Vicki Hollub. “We remain on track and continue along our pathway to break even at $50 after dividend and production growth and our long-term, returns-focused value proposition.”

For the third quarter, the impacts of Hurricane Harvey are anticipated to be:

  • Chemicals segment pre-tax income reduction of approximately $60 million
  • Midstream segment pre-tax income reduction of approximately $10 million
  • Permian Resources daily production reduced by approximately 1,000 boed
  • Permian EOR was minimally impacted due to this asset area’s infrastructure position

To prepare for Hurricane Harvey, the company's Chemicals business safely shut down its facilities at Ingleside and Houston well ahead of any storm impact. At Ingleside, the ethylene cracker resumed operation on Sept. 11, while production at the vinyl chloride monomer (VCM) and chlor-alkali facilities resumed on Sept. 15 and Sept. 16, respectively.

At the Houston complex, the Pasadena and Deer Park polyvinyl chloride (PVC) plants restarted Aug. 31. The Battleground chlor-alkali facility resumed production Sept. 2, and the LaPorte VCM plant resumed production on Sept. 6. Deer Park VCM resumed production on Sept. 18, due to a lack of utilities from a third-party supplier.

In the Midstream segment, the Oxy Ingleside Energy Center oil export terminal suspended operations Aug. 25, when the Port of Corpus Christi closed ahead of the storm. The facility reopened Aug. 30, and on Sept. 2 shipped the first cargo of crude oil from the Western Gulf Coast after port operations commenced.

Related News ///


Comments ///

comments powered by Disqus