Occidental announces oil discovery in Gulf of Mexico (updated)

Woodside Energy

09/04/2026 12:16

Adds shares and details in paragraphs 4-6

April 9 (Reuters) -
U.S. shale producer Occidental Petroleum OXY.N has discovered oil at the Bandit prospect in the Gulf of Mexico it co-owns with Chevron CVX.N and Woodside Energy WDS.AX, about 125 miles south of the Louisiana coast, it said on Thursday.

Bandit is operated by Occidental, which holds a 45.375% working interest. U.S. oil major Chevron has 37.125% and Australia-based Woodside Energy 17.5%.

The Gulf of Mexico, which U.S. President Trump renamed the Gulf of America under an executive order, is home to about 15% of U.S. crude oil production.

"We believe this discovery demonstrates the continued importance of the Gulf of America as a strategic source of reliable domestic oil supply that supports long-term energy security," said Occidental executive Jeff Simmons.

The company said in a statement that the co-owners are evaluating results to determine next steps and that the discovery has the potential for subsea tie-backs to an Occidental-operated facility and others nearby.

A subsea tie-back connects offshore oil and gas fields to existing production facilities via pipelines and other infrastructure.

Shares of the Houston, Texas-based company rose 1.5% in premarket trading, as
oil prices also rose
 amid concerns that energy flows through the crucial Strait of Hormuz will remain restricted.

 (Reporting by Pooja Menon in Bengaluru; Editing by Sahal Muhammed)

 ((Pooja.Menon@thomsonreuters.com;))