Variable Interest Entity

6 Months Ended

Jun. 30, 2014

Variable Interest Entity

Variable Interest Entity

13. Variable Interest Entity

In November 2012, Occidental and Magellan Midstream Partners, L.P. (Magellan) formed BridgeTex Pipeline Company, LLC (BridgeTex) to construct a pipeline to transport crude oil between the Permian region and the Gulf Coast refinery markets.  Construction of the pipeline continues and it is expected to begin service in the third quarter of 2014. Occidental owns a 50-percent interest in BridgeTex, which is a variable interest entity that Occidental consolidates.  This investment is not material to Occidental’s financial statements.  As of June 30, 2014 and December 31, 2013, the BridgeTex assets and liabilities mainly comprised cash and cash equivalents and Property, Plant and Equipment (PP&E).  As of June 30, 2014, BridgeTex’s total cash, PP&E and non-controlling amounts (including Magellan’s interests) were $63 million, $922 million and $523 million, respectively. As of December 31, 2013, BridgeTex’s cash, PP&E and non controlling amounts were $82 million, $420 million and $246 million, respectively.  BridgeTex’s assets cannot be used for the obligations of, nor do BridgeTex’s creditors have recourse to, OPC or its other subsidiaries.