Port Commissioners Approve A New LOI to Sell NSI

CORPUS CHRISTI, TEXAS – The Port Commission approved a Letter of Intent (LOI) with Oxy Ingleside Property Holdings, LLC, a wholly owned subsidiary of Occidental Petroleum Corporation (Oxy), to purchase a major portion of former U.S. Naval Station Ingleside (NSI) at a special Commission meeting today.

Oxy is the fourth-largest U.S. oil and gas company by market capitalization. Its wholly owned subsidiary Occidental Chemical Corporation has operated a chemical plant in Ingleside since 1987. This new investment in Ingleside would be an expansion of Oxy’s current operations in the area.

“We are honored to be able to work with Oxy.  By all counts, Oxy has been a good neighbor industry at Ingleside for over 30 years,” said  Mike Carrell, Chairman of the Port Commission

The LOI covers approximately 816 acres at NSI, including the Industrial property, the magazine area, and the 435 acres adjacent. It does not include the Campus section. Completion of the transaction is subject to further approval by both the Port Commission and Occidental Petroleum Corporation’s Board of Directors.

The offer is for $82.1 million. This is consistent with the appraised values of the property.  The approved LOI will develop as follow:

+ Within 5 business days Oxy will deposit $1 million in earnest money

+ We start to work on an Earnest Money contract, which must be completed by April 30, 2012.

+ Upon executing the Earnest Money contract, Oxy gets 35 days of a “due diligence” period.

+ Closing would take place within 60 days after the “due diligence” period.