Oxy to sell assets in Bakken formation

Story updated on Oct. 29 with spending numbers.

Occidental Petroleum Corp., Houston, announced it will make $600 million net by selling its Bakken formation acreage, saying its North Dakota operations were unprofitable at current crude oil prices. The buyer’s name was not disclosed during a third-quarter earnings call.

“With this $600 million we could run four to five rigs in the Permian for a year and generate more production than we would get out of the Bakken,” said Steve Chazen, Oxy’s chief executive officer. “We just don’t see how it competes for capital inside the company in any reasonable price scenario.”

Occidental spent $1.2 billion during the third quarter of which more than 50% was directed to the Permian basin.