Houston-Based Occidental Petroleum to Sell Chemical Business to Berkshire Hathaway in Nearly $10 Billion Deal

Occidental Petroleum, a Houston-based energy powerhouse, has unveiled plans to offload its chemical manufacturing segment to Berkshire Hathaway in a deal approaching $10 billion. This divestiture represents a deliberate shift for Occidental, enabling the company to concentrate more intensively on its upstream oil and gas ventures by divesting its downstream chemical operations. The portfolio involved includes numerous chemical production plants, predominantly situated along the U.S. Gulf Coast, highlighting Berkshire Hathaway’s ambition to deepen its presence in the industrial chemicals arena.

By transferring these assets, Occidental aims to unlock capital that can be reinvested into its core energy activities and debt reduction efforts. Market experts view this move as part of Occidental’s broader initiative to optimize its business model amid volatile energy prices and evolving market conditions. Key elements of the transaction include:

• Acquisition of multiple chemical manufacturing facilities primarily in the Gulf Coast region
• Commitment to maintaining workforce stability and uninterrupted operations following the sale
• Financial terms reflective of current market uncertainties and asset valuations