Occidental Buys 24.5% Stake in Dolphin Energy

ABU DHABI, United Arab Emirates —  Occidental Petroleum Corp. on Sunday acquired a 24.5% stake in Dolphin Energy Ltd., an Emirates-based company previously held by Enron Corp., the official news agency WAM reported.

Los Angeles-based Oxy paid $310 million in cash to become the United Arab Emirates’ second partner in Dolphin Energy, beating four other multinationals in the race.

“Occidental won by a huge margin,” said Ahmed al-Sayegh, a member of the boards of DEL and UOG, the state investment arm that is the majority owner. “There was no way anyone could compete with Occidental’s offer.”

According to the Middle East Economic Survey, Oxy’s bid was about $100 million more than an offer by BP, first runner-up in the contest.

Dolphin is a perfect fit for Occidental’s strategy to expand in the Middle East, Occidental Chief Executive Ray Irani said.

“Dolphin offers an opportunity not only to implement the project as it is currently envisaged, it provides an opportunity to cooperate in the energy field in the region,” he said.

The deal gives Occidental a share equal to that of France’s TotalFinaElf, while UOG holds the remainder.

“Having Occidental as a third partner will help smooth the process and bring capital into it,” Sayegh said.

Dolphin plans to build a pipeline to channel 2 billion cubic feet per day of Qatari gas to the United Arab Emirates.

Enron previously had held the stake and sold it back to the state group for an undisclosed sum a year ago, long before the Houston-based energy trader’s collapse.

Shares of Occidental rose 9cents to $29.86 on Friday on the New York Stock Exchange.