Occidental finds oil in Bandit prospect, Gulf of Mexico
?U.S. Occidental Petroleum, a shale oil producer, has 'discovered oil at the Bandit Prospect 'in the Gulf of Mexico, which it 'co-owns.
Bandit is operated and owned by Occidental. It holds a working interest of 45.375%. U.S. oil major Chevron holds 37.125%, and Australia's Woodside Energy has 17.5%.
About?15% of U.S. oil production comes from the Gulf of Mexico.
Jeff Simmons, Occidental's executive director, said: "We think this?discovery demonstrates?the?continued significance of the Gulf of America? as a strategic oil source that provides reliable domestic supply and supports long-term security of energy."
In a'statement, the company stated that co-owners were evaluating the results in order to determine the next steps. The discovery 'has the potential of subsea tiebacks -to an Occidental operated?facility as well as others nearby.
Subsea tiebacks connect existing oil and gas production facilities to offshore oil and?gas?fields via pipelines and other infrastructure.
The shares of Houston-based company, Texaco, rose 1.5% during premarket trading as oil prices also rose amid concerns that energy flow through the Strait of Hormuz, which is crucial, will be restricted. (Reporting from Bengaluru by Pooja menon; editing by Sahal Muhammad)
(source: Reuters)
