Occidental Discovers Oil Near Existing Infrastructure off Louisiana

Occidental Petroleum Corp on Thursday announced an oil discovery in the Green Canyon Block 680 on the United States' side of the Gulf of America.

The "Bandit" well, about 125 miles south of the Louisiana coast, "encountered high-quality, full-to-base oil-bearing Miocene sands", the Warren Buffett-backed energy company said in an online statement.

"The co-owners are currently evaluating results to determine next steps", operator Occidental said. "The discovery has the potential for subsea tie-backs to an adjacent Occidental-operated facility and others in the nearby area".

Jeff Simmons, Occidental senior vice president for subsurface technology and chief petrotechnical officer, said, "Occidental is focused on strengthening our Gulf of America portfolio. We believe this discovery demonstrates the continued importance of the Gulf of America as a strategic source of reliable domestic oil supply that supports long-term energy security".

Houston, Texas-based Occidental had reported 4.6 billion barrels of oil equivalent (boe) in proven reserves at yearend 2025.  "Proved reserve additions included extensions and discoveries totaling 340 million BOE, mainly in the Permian Basin, and positive revisions associated with infill development projects of 115 million BOE, primarily in the Permian and DJ Basins", it said in its quarterly report February 18, 2026. "The 2025 all-in reserves replacement ratio was 98 percent, with a three-year average of 154 percent. The 2025 organic reserves replacement ratio was 107 percent, with a three-year average of 116 percent".

Occidental operates the new discovery with a 45.375 percent stake. Chevron Corp owns 37.125 percent. Australia's Woodside Energy Group Ltd holds 17.5 percent.

"Chevron's exploration strategy is focused on disciplined investment across a resilient, balanced portfolio of infrastructure-enabled and frontier high-impact exploratioon opportunities", Chevron said separately. "Chevron is the largest leaseholder and a leading producer in the Gulf of America, with a portfolio that includes operated and non-operated assets. Discoveries like Bandit build on Chevron's deepwater expertise".

Mark Abbotsford, Woodside executive vice president and chief commercial officer, said separately, "This result highlights the quality of the US Gulf of America and the role it continues to play in delivering secure, reliable energy".

"The Bandit-1 discovery also demonstrates the value of disciplined exploration in established basins with clear pathways to commercialization", Abbotsford added.

"In support of high-grading our Gulf of America portfolio, Woodside was the successful bidder, subject to regulatory approval, on two blocks in the Big Beautiful Gulf (BBG) 2 Oil & Gas Lease Sale held in March 2026. This further builds on the eight leases awarded to Woodside under the BBG1 lease sale held late in 2025".

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