Occidental Petroleum is edging closer to a blockbuster deal that could reshape its business. The Houston-based energy giant confirmed it is in advanced talks to sell its chemical arm, OxyChem, in a transaction valued at no less than $10 billion. News of the potential sale sent Occidental’s shares up more than 1 percent in premarket trading on Monday.
The move is part of a broader push to streamline operations and strengthen the balance sheet. Analysts at Barclays say the proceeds would help Occidental reduce debt and reward shareholders, while signaling a strategic pivot away from chemicals toward its core oil-and-gas and carbon-capture ambitions.
OxyChem is no small asset. It is a major global producer of chlor-alkali, PVC and caustic potash, with reliable cash flow and links to Occidental’s high-profile Direct Air Capture projects. Barclays projects the division’s EBITDA climbing from $1.24 billion in 2025 to $1.46 billion by 2027, making the rumored price tag a rich multiple of roughly seven times forward earnings, higher than the parent company’s own valuation.
Even after taxes, the sale is expected to be slightly accretive to earnings, a detail that investors are likely to welcome. If negotiations stay on track, Occidental could announce a deal within weeks, marking a decisive step toward a leaner, financially stronger future.
