Occidental Petroleum Announces Major Oil Discovery at Deepwater Bandit Site

Occidental Petroleum (NYSE: OXY) has reported a successful oil discovery at the Bandit site, located approximately 125 miles south of the Louisiana coast. The company identified high-quality, full-to-base oil-bearing Miocene sands during exploration, marking a significant win for its deepwater portfolio in the Gulf of America. The Bandit well is one of the deepest in the region, reaching depths of over 40,000 feet. This project aligns with Occidental's strategic focus on mid-cycle investments, which prioritize high initial capital expenditure to secure reliable, long-term cash flows. The company is currently evaluating the results to determine the next phases of development. Occidental holds a 45% interest in the Bandit prospect, with Chevron (NYSE: CVX) owning over 37% and Woodside Energy Group (NYSE: WDS) holding a 17.5% stake. Industry estimates suggest that a successful well in this area could yield as much as 230 million barrels of oil equivalent (BOE), a figure that substantially outperforms average production levels found in the Permian Basin. To maximize efficiency, Occidental is exploring the potential for a subsea tie-back. This would allow the company to connect the new well to existing underwater pipelines and production platforms, reducing the need for new surface infrastructure. The discovery underscores the continued strategic importance of the Gulf of America, which currently accounts for approximately 15% of total U.S. oil production.