RELATED-PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2015

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

NOTE 11RELATED-PARTY TRANSACTIONS

Through July 2014, substantially all of our products were sold to Occidental’s marketing subsidiaries at market prices and were settled at the time of sale to those entities.  Beginning August 2014, we started marketing our own products directly to third parties.  For the three and six months ended June 30, 2014, related party sales included oil and natural gas products of $1,079 million and $2,139 million, respectively, and power (reflected in other revenue) of $28 million and $66 million, respectively.

Purchases from related parties reflect products purchased at market prices from Occidental’s subsidiaries and used in our operations.  These purchases were approximately $100 million and $120 million for the three and six months ended June 30, 2014, respectively, and were included in production costs.  There were no significant related-party receivable or payable balances at June 30, 2015 and December 31, 2014.

Prior to the Spin-off, the statement of operations included expense allocations for certain corporate functions and centrally-located activities historically performed by Occidental.  Charges from Occidental for these services of approximately $40 million and $75 million for the three and six months ended June 30, 2014, respectively, are reflected in general and administrative expenses.