RELATED-PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

NOTE 14 RELATED-PARTY TRANSACTIONS

During 2014, we entered into the following related-party transactions:

	2014
	(in millions)
Sales(a)	$	2,706
Allocated costs for services provided by affiliates	$	126
Purchases	$	175

(a)

Amounts include related-party sales from our Elk Hills power plant of $89 million during 2014. These sales are included in other revenue in the statements of operations.

Through July 2014, substantially all of our products were sold through Occidental’s marketing subsidiaries at market prices and were settled at the time of sale to those entities. Beginning August 2014, we began marketing our own products directly to third parties. For the year ended December 31, 2014, sales to Occidental subsidiaries accounted for approximately 65% of our net sales.

The statements of operations for the year ended December 31, 2014 includes expense allocations for certain corporate functions and centrally-located activities performed by Occidental prior to the Spin-off. These functions include executive oversight, accounting, treasury, tax, financial reporting, internal audit, legal, risk management, information technology, government relations, public relations, investor relations, human resources, procurement, engineering, drilling, exploration, finance, marketing, ethics and compliance, and certain other shared services. Charges from Occidental for these services were generally reflected in general and administrative expenses and also include employee-related costs such as salaries, bonuses and stock compensation costs.

Purchases from related parties reflected products purchased at market prices from Occidental’s subsidiaries and used in our operations. These purchases are included in production costs. There are no remaining related-party receivable or payable balances related to these transactions at December 31, 2014.