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Investing.com -- Occidental Petroleum (NYSE:OXY) shares rose 1.8% Thursday following an oil discovery announcement and higher crude prices.
The company announced an oil discovery at the Bandit prospect in the Gulf of America, located approximately 125 miles south of the Louisiana coast. The exploration well in Green Canyon Block 680 encountered oil-bearing Miocene sands.
Occidental operates the project with a 45.375% working interest, alongside Chevron U.S.A. Inc. at 37.125% and Woodside Energy at 17.5%. The co-owners are evaluating results to determine next steps. The discovery has potential for subsea tie-backs to an adjacent Occidental-operated facility and others nearby.
Oil prices rose 3% Thursday as concerns over a fragile two-week Middle East ceasefire raised questions about energy flows through the Strait of Hormuz.
"We believe this discovery demonstrates the continued importance of the Gulf of America as a strategic source of reliable domestic oil supply that supports long-term energy security," said Jeff Simmons, Senior Vice President, Subsurface Technology and Chief Petrotechnical Officer.
The company did not disclose the size of the discovery or provide a timeline for potential development.
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