Occidental Petroleum Corporation OXY announced that it has discovered oil at the Bandit prospect in the Gulf of America. Drilling at Green Canyon Block 680 confirmed extensive, high-quality Miocene sands saturated with oil throughout the entire section.
This new discovery could be tied back via subsea infrastructure to a nearby facility operated by Occidental Petroleum, along with other local assets, allowing it to leverage the existing nearby infrastructure to develop the new find.
Occidental Petroleum is the operator of this field with 45.375% working interest alongside partners Chevron U.S.A. Inc. with 37.125% and Woodside Energy with 17.5% interest.
The new discovery of high-quality oil in the Gulf of America will definitely boost production volumes of Occidental Petroleum in the long-term. Occidental Petroleum expects production from the Gulf of America in the range of 126-134 oil equivalent per day (Mboe/d) in first-quarter 2026 and 129-137 Mboe/d for 2026.
At the end of 2025, Occidental Petroleum had eight active operated platforms and 14 active fields in the Gulf of America region and this new discovery will boost its production volume and cash flow generation from the region. Last year, the Gulf of America assets of OXY achieved strong operational performance.
Occidental Petroleum’s initiatives to develop domestic resources reduce its exposure to geopolitical risks.
How OXY’s Peers Are Exploring the Gulf of America?
The Gulf of America is a key energy hotspot, supported by its abundant oil and natural gas reserves. Several energy firms are intensifying exploration efforts, using advanced technologies to tap these resources, enhance output and reinforce long-term supply outlooks for global energy demand.
Other industry players like BP plc BP and Shell plc SHEL have shown strong interest in the Gulf of America, attracted by its rich oil and gas reserves. BP’s upcoming projects in this region include Kaskida and Tiber. Shell is active in deepwater asset development and involved in the development of the Sparta field and participation in the Daenerys discovery.
Both companies are actively investing in exploration and production activities, aiming to expand their portfolios, enhance output and capitalize on the region’s long-term energy potential.
Occidental Petroleum’s Earnings Estimates Are Going Up
The Zacks Consensus Estimate for Occidental Petroleum’s 2026 and 2027 earnings per share indicates an increase of 376.92% and 119.29%, respectively, in the past 60 days.
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OXY’s Price Performance
Occidental Petroleum’s shares have gained 54.3% in the past year compared with the Zacks Oil and Gas-Integrated-United States industry’s rise of 39.6%.
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Zacks Rank of OXY
Occidental Petroleum currently sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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See This Stock Now for Free >>This article originally published on Zacks Investment Research (zacks.com).
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