Variable Interest Entity

9 Months Ended

Sep. 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.  The pipeline began commercial service in September 2014. Occidental indirectly owns a 50% interest in BridgeTex, which is a variable interest entity that Occidental consolidates.  This investment is not material to Occidental’s financial statements.  As of September 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 September 30, 2014, BridgeTex’s total cash, PP&E and non-controlling amounts (including Magellan’s interests) were $66 million, $1 billion and $606 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.