Occidental to pay $ 3.2 billion for the U.S. Campos, Argentina Sell Wells

Occidental Petroleum Corp., the U.S. energy company which is the sale of their wells from Argentina to China's biggest refiner, agreed to buy oil and natural gas in Texas and North Dakota for $ 3.2 billion.

Purchases of the Royal Dutch Shell Plc and a seller without a name will add the equivalent of 100,000 barrels of daily oil production over time and contribute to the results immediately after closing in Los Angeles, Occidental said in a statement. The company also confirmed a statement issued China Petrochemical Corp. today that Occidental will sell its oil from Argentina and gas subsidiary of $ 2,450,000,000.

It is the largest acquisition by the West since 2006, when he purchased Vintage Petroleum of 4.46 billion. Excluding the operations announced today, Occidental's chief executive, Ray Irani has spent more than $ 10 billion in acquisitions over the past five years that have helped boost production by more than a third.

"This puts them in a better position to meet its production targets," said Philip Weiss, New York analyst with Argus Research Corp., which has a buy rating on shares of Western and possesses no. "I certainly do not view the owners of those assets that are selling in Argentina."

Western purchases today are fields in southern Texas that Shell agreed to sell for $ 1.8 billion. The "mostly minor" fields currently produce 200 million cubic feet of gas per day, based in The Hague, Shell said in a statement. The agreement is part of Shell's previously announced plans to sell $ 7 billion to $ 8 billion in assets around the world this year and next.

Leaving Argentina

The acquisition of North Dakota, valued at $ 1.4 billion, includes 180 000 hectares owned by a private seller not identified, said West. Assets producing approximately 5,500 barrels of oil equivalent per day.

West is out of Argentina by selling its assets to China Petrochemical amid controls on gas prices that make it more difficult for producers to profit in the second largest economy in Latin America, said Weiss.

It is the first investment in Argentina's oil and gas industry for China refinery, known as Sinopec Group. The fields produced over 51,000 barrels of oil equivalent per day last year and held 393 million barrels of proved plus probable reserves as of end 2009, according to Sinopec Group.

Doubling stocks

More than doubled Irani of Occidental oil reserves and crude oil quadrupled, and production of gas since he succeeded Armand Hammer as chief executive in February 1990. The company's focus has been on improving the production of abandoned oil fields in places like California and Texas.

Irani, 75, is expected to resign as CEO in May and be succeeded by Stephen I. Chazen, the company's current president and chief operating officer.

Western also plans to increase its participation in the general partner of pipeline operator Plains All American Pipeline LP to 35 percent. Is adding to their holdings as Vulcan Capital, the investment group of Microsoft Corp. co-founder Paul Allen, is selling its stake in the general partner.

Plains All American, based in Houston, agreed on 15 November to buy the pipes that collect and send crude from Bakken zone for $ 210 million.

Bakken Formation, located in North Dakota and Montana, has an estimated 4.3 billion barrels of technically recoverable oil, according to a 2008 report by the U.S. Geological Survey.

Power Plant

West also said today it will pay an undisclosed amount to buy the other half of the Elk Hills power plant for Sempra Energy. The company already owns half of the gas power plant, located in the middle of a Western oil and gas field near Bakersfield, California.

All operations are expected to close in late March, Occidental said.

Occidental's board agreed to promote the company's dividend by 21 percent to 46 cents per quarter from 38 cents, from 15 April payment.

Occidental rose $ 1.37, or 1.5 percent, to $ 92.44 at 10:21 am in composite trading on the New York Stock Exchange.

The shares have risen 14 percent this year, surpassing the earnings of Exxon Mobil Corp. and Chevron Corp., the largest U.S. companies energy.