Oxy to Divest Stake in Russian JV for $485M

Occidental Petroleum Corporation on Thursday announced the execution of an agreement for the sale of its 50% interest in the Vanyoganneft Joint Venture in western Siberia to TNK-BP for approximately $485 million.

The license governing the Vanyoganneft Joint Venture currently expires in January 2013, although it may be extended under Russian law. At year-end 2006, Occidental's net proved Vanyoganneft reserves were an estimated 33 million barrels of oil equivalent, and the company's net production from Vanyoganneft is currently averaging an estimated 22,600 barrels of oil per day.

Occidental expects to record a gain of approximately $400 million at the expected close of the transaction in the first quarter of 2007.