LOS ANGELES, Nov. 17, 1999 (PRIMEZONE) -- ARCO (NYSE:ARC) has reached agreement to sell its ownership in ARCO Long Beach, Inc. to Occidental Petroleum Corporation (NYSE:OXY). The sale is conditional upon obtaining approval from the Long Beach City Council and the California State Lands Commission. It is expected to close in the first half of 2000.
ARCO Long Beach Inc., a subsidiary of ARCO, has owned THUMS, the Long Beach Unit operating contractor, since 1990. ARCO Long Beach, Inc. currently realizes net production of about 30,000 barrels a day and at year end 1998, ARCO's net reserves in the field totaled 88 million barrels.
The sale of the Long Beach subsidiary is part of ARCO's worldwide restructuring started in 1998. As part of that program, ARCO said it would focus its exploration and production in selected regions. In late 1998, ARCO exchanged its other California exploration and production interests, ARCO Western Energy, for properties in the Gulf of Mexico.
In addition to ARCO, the State of California and the City of Long Beach have interests in the Long Beach Unit.