Occidental has completed the sale of its chlor-alkali subsidiary, OxyChem, to Berkshire Hathaway, an intentional step in consolidating around its core oil and gas business. After a decade of expanding and upgrading its upstream portfolio, the company is monetizing non-core assets to accelerate debt reduction, simplify operations, and concentrate capital on production and free cash flow.
Management was explicit on the earnings call that the OxyChem sale was enabled by the scale and longevity of Occidental’s oil and gas portfolio, with proceeds directed toward strengthening the balance sheet and supporting future upstream investment.
The map below shifts from strategy to execution by showing the footprint of the chemical manufacturing assets sold and the surrounding infrastructure that supported them.
Why It Matters
● Asset sales supporting upstream consolidation
Proceeds from the OxyChem divestiture are being used to reduce debt and reinforce financial flexibility, allowing Occidental to remain focused on its Permian, Gulf of America, and international oil and gas assets.
● A model other operators may examine
As capital discipline tightens, other oil and gas focused companies may look to non-core industrial or downstream assets as sources of liquidity and simplification.
● Value realized from infrastructure positioning, not barrels
Unlike upstream divestitures tied to reserves or drilling inventory, this transaction monetized manufacturing assets whose value is anchored in their position within established gas transmission corridors, power supply, and export infrastructure built over decades.
● Chemicals as a strategic exit, not a market call
The sale reflects portfolio focus rather than a view on chemical demand, separating a mature industrial business from a production driven strategy.
What the Map Shows
The Rextag Energy DataLink map visualizes OxyChem’s U.S. chlor-alkali footprint, the assets Occidental exited as part of its portfolio realignment.
● Chlor-alkali production facilities
14 operating plants across major U.S. industrial corridors, representing the manufacturing assets sold in the transaction.
● Onsite and industrial power supply
– Ingleside Cogeneration Plant, onsite power and steam
– La Porte Cogeneration Facility, industrial power supply
● Liquid terminals and export infrastructure
– Ingleside Terminal, storage and export dock access
– La Porte Terminal, chemical distribution and logistics
● Natural gas transmission backbone, operational only
NGPL, TETCO, Transco, Gulf Coast Express, ANR, Columbia Gas, DTE Gas, EGTS, Atmos Mid-TX, KGS, and MCMC
shown to illustrate the gas and energy infrastructure surrounding the sold assets
Together, these layers show the industrial environment that supported OxyChem’s operations and the infrastructure context that underpinned the value Occidental realized in the sale.
A Deeper Dive with DataLink
Using Rextag Energy DataLink, users can:
● Examine the physical footprint behind a major divestiture
● See how chemical plants sit within gas, power, and export networks
● Understand how infrastructure positioning drives transaction value
● Analyze how oil and gas companies monetize non-core industrial assets
● Compare similar asset networks across operators considering simplification
