Occidental Petroleum Corp. subsidiary Oxy Holding Company (Pipeline) Inc.'s board designee, Oscar Brown, will no longer be a board member of Plains GP Holdings LP, effective on the closing of the Occidental unit's secondary offerings.
Oxy Holding has a right to designate a director to Plains GP for as long as it owns at least a 10% qualifying interest in the partnership. However, Oxy Holding's sale of Plains All American Pipeline LP common units and Plains GP class A shares removed its qualifying interest and right for a board designation at Plains GP, according to a Sept. 23 SEC filing.
The Occidental unit sold 14,977,890 Plains common units and 15,000,000 Plains GP class A shares for total gross proceeds of $652.2 million. The offerings are scheduled to close Sept. 23.
Plains provides crude oil, NGLs and natural gas midstream services, while Plains GP owns an indirect, non-economic controlling general partner interest and an indirect limited partner interest in Plains. Oxy Holding is also an affiliate of Plains GP. Houston-based Occidental is one of the largest oil and gas producers in the U.S.
