OCCIDENTAL Petroleum will book a writedown of up to $9 billion in the second quarter amid the fallout from the Covid-19 pandemic as the US independent also struggles with a massive debt load. The Houston-based player has taken more than $2 billion in writedowns for the last two quarters and is predicting another impairment on oil and gas assets for the third straight quarter ranging from an estimated $6 billion up to $9 billion after tax, it said late last week in a US Securities & Exchange Commission filing. "The impairment estimate is primarily attributable to the expected prolonged period of lower commodity prices brought on by lower oil demand as a result of the impacts of the Covid-19 pandemic to the worldwide economy", it said. The company, along with other prominent shale players, cut its capital spending, drew back on new drilling activity, slashed its dividend and curtailed production in response to the downturn.
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