Occidental Petroleum Corporation has signed an agreement to purchase Phibro LLC (Phibro) from Citigroup Inc., for approximately net asset value.

Primarily a trader in oil and gas, Phibro's assets consist of cash, marketable securities and readily saleable commodity positions. Phibro does not trade in any exotic derivatives or hold any level three type assets. Occidental's net investment in Phibro is expected to be about $250 million.

Phibro's management team, headed by Andrew Hall, and its employees will remain with the company after closing. The senior management team has agreed to make a significant investment in Phibro and receive returns dependent upon the company's future performance. Additionally, significant portions of current and future bonuses will be deferred and retained by Phibro and paid out in future years. These future payouts will be adjusted to reflect Phibro's results during that period.

Tags: Occidental Petroleum Corporation, Phibro LLC