Occidental, the California based producer of natural gas, will move its headquarters to Houston after close to a century of being based in Los Angeles. The move was part of the energy company’s corporate overhaul.
The fourth largest oil company in the nation, Occidental also said on Friday that it would spin off its assets in California into a separate company that was publicly traded and based in Southland.
Occidental will also continue to employ over 8,000 in California.
The company is referred to as Oxy and at one time was involved with operations in cattle breeding and film production prior to becoming a giant in energy.
The shake up at Occidental follows a rocky year in which some activist investors became angry over the operation of the company and forced a reshuffling in the boardroom.
The company also cut costs and boosted share price after falling behind its competitors over recent times.
The move of its headquarters to Houston was not surprising to some industry observers who had anticipated the business would move closer to its Texas operation the Permian Basin and break off from its less productive unit in California.
Stephen Chazen will stay on as CEO and president through 2016, which will extend by two years his time at the helm. Edward Djerejian, who last May was elected chairman, will stay for another term of one-year.
Along with assets in Texas, the new company in Houston will also include its operations in the Middle East and Colombia, as well as OxyChem its subsidiary related to chemicals.
The split will need approval from regulators and a final one from its board of directors, but should be completed prior to year-end or in the early part of 2015.
The company that is registered in California will remain the biggest producer of natural gas in the state. The new company will be owners of nearly 2.3 million acres of gas and oil land in California.
