Occidental Petroleum 2002 Annual Report Download - page 31

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investment was $489 million, which represented the fair value of Lyondell's
shares at closing.
PAKISTAN ACQUISITION
In 2002, Occidental increased its ownership in Badin Block 1 and 2R by
purchasing additional interests in these two blocks from the government of
Pakistan for approximately $72 million.
DISPOSITION OF CHROME AND VULCAN
In the fourth quarter of 2002, Occidental sold its chrome business at
Castle Hayne, North Carolina for $25 million and its calendering operations
(Vulcan) for a $6 million note receivable. In the third quarter of 2002,
Occidental recorded an after-tax impairment charge of $69 million and classified
both of these businesses as discontinued operations. The fair value of these
businesses was determined by the expected sales proceeds from third party
buyers. When these transactions closed, no significant gain or loss was
recorded.
2001
SALE OF INTRASTATE PIPELINE
On August 31, 2001, Occidental sold its interest in a subsidiary that owned
a Texas intrastate pipeline system. The entity was sold to Kinder Morgan Energy
Partners, L.P. for $360 million. Occidental recorded an after-tax loss of
approximately $272 million in connection with this transaction.
SALE OF INDONESIA GAS PROPERTIES
On July 10, 2001, Occidental completed the sale of its interest in the
Tangguh LNG project in Indonesia to Mitsubishi Corporation of Japan for proceeds
of $503 million. Occidental recorded an after-tax gain of approximately $399
million for this transaction.
2000
MILNE POINT ASSET SWAP
On December 4, 2000, Occidental completed an agreement with BP to obtain
BP's interest in a carbon dioxide field in New Mexico and related pipelines in
exchange for Occidental's interest in the Milne Point oil field in Alaska,
together with additional cash consideration. The BP properties acquired had a
book value of $51 million, and Occidental paid $14 million as additional
consideration. The gain on this transaction was immaterial.
OXYMAR PURCHASE
On November 29, 2000, OxyChem purchased a 28.6-percent interest in OxyMar,
a Texas general partnership that owns the Ingleside, Texas VCM facility operated
by OxyChem. The interest was purchased from U.S. VCM Corporation, an affiliate
of Marubeni Corporation, which continues to own a 21.4-percent interest and
remains a 50-percent partner for corporate-governance purposes. Occidental
received approximately $37 million relating to the purchase and, as a result,
agreed to guarantee an additional $110 million of OxyMar's debt. The $37 million
was recorded as a reduction to Occidental's investment in OxyMar. OxyVinyls owns
the remaining 50-percent interest. No gain or loss was recognized on this
transaction.
ECUADOR FARM OUT
On November 1, 2000, Occidental agreed to farm out a partial economic
interest in its Block 15 operations in Ecuador to AEC, now EnCana, for $68
million. EnCana earns a 40-percent interest in the block and will reimburse
Occidental for certain capital costs through 2004 estimated at $110 million.
Occidental remains the operator of Block 15. The gain on this transaction was
not significant.
21
SALE OF DUREZ
On November 1, 2000, Occidental completed the sale of its Durez phenolic
resins and compounding businesses and assets to Sumitomo Bakelite Co., Ltd. for