Arco to Sell 146 Oil, Gas Fields
Atlantic Richfield Co. will sell 146 oil and gas fields in three deals worth a total of $362 million. The fields are in California, New Mexico, Texas and Wyoming.
The sales represent most of the small fields in Arco’s Western District. Arco will retain the 60 largest fields, containing about 90% of the district’s oil and gas reserves.
Like other major U.S. oil companies in recent years, Arco has been divesting itself of non-core business assets to increase the efficiency of its operations. The Los Angeles-based oil firm announced in October, 1991, that it would re-evaluate all its energy assets.
In September, the company sold some Texas fields and a natural gas pipeline for $128 million. These sales, along with smaller sales throughout the year, will total $600 million for 1992.
“There will be more property sales next year,” Arco spokesman Rick Ostler said. “But this is essentially the end of our sales in the state of California.”
Vintage Petroleum Inc. will buy fields in California’s San Joaquin Basin from Arco for $90 million. Arco will continue to receive revenue from the fields if oil prices rise above specified levels.
Anadarko Petroleum Corp. has agreed to pay about $209 million for properties in west Texas and southeastern New Mexico.
Snyder Oil Corp. agreed to pay $63 million for fields in the Rocky Mountain states, primarily Wyoming. In that deal, Arco maintains a royalty interest and the right to revenue, depending on oil prices.
