Occidental Petroleum Announces Sale of Interest in BridgeTex Pipeline Generating Proceeds of $1.15 Billion

HOUSTON–(BUSINESS WIRE)–Occidental
Petroleum Corporation (NYSE: OXY) today announced the entrance into
an agreement with Plains All American Pipeline, L.P. (PAA) and Plains GP
Holdings, L.P. (PAGP) to sell its 50 percent interest in BridgeTex
Pipeline Company, LLC (BridgeTex) to PAA for $1.075 billion.

BridgeTex, a company jointly owned by Occidental and Magellan Midstream
Partners, L.P., owns the BridgeTex Pipeline, a 300,000 barrel-per-day
crude oil pipeline extending from the Permian Basin to the Houston Gulf
Coast area. The BridgeTex Pipeline began service in September 2014.

The sale of Occidental’s interest in BridgeTex includes two
transactions: PAA will purchase for $1.075 billion Occidental’s interest
in the approximately 400-mile northern leg of the BridgeTex pipeline
which runs from the Permian Basin to East Houston; and Magellan will
acquire Occidental’s interest in the approximately 40-mile, 24-inch
southern leg of the BridgeTex pipeline from Houston to Texas City for
$75 million.

“This sale allows us to monetize this important pipeline while retaining
long-term cost-advantaged shipping commitments on BridgeTex to ensure
access to the key Houston refining markets,” said Stephen I. Chazen,
President and Chief Executive Officer. “This is in line with our
previously announced strategic review to streamline our business,
reinvest in areas where we have depth and scale, and maximize total
return to shareholders.”

The BridgeTex transaction is contingent on the sale of a portion of
Occidental’s Class A shares in PAGP.

About Occidental Petroleum

Occidental
Petroleum Corporation is an international oil and gas exploration
and production company with operations in the United States, Middle
East/North Africa and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based on
equity market capitalization. Occidental’s midstream and marketing
segment gathers, processes, transports, stores, purchases and markets
hydrocarbons and other commodities in support of Occidental’s
businesses. The company’s wholly owned subsidiary OxyChem manufactures
and markets chlor-alkali products and vinyls.

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does not undertake any obligation to update any forward-looking
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Material risks that may affect Occidental’s results of operations and
financial position appear in Part I, Item 1A “Risk Factors” of the 2013
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This news release does not constitute an offer to sell or a solicitation
of an offer to buy any securities, nor shall there be any sale of such
securities in any state or jurisdiction in which such an offer,
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