HOUSTON (Reuters) – Occidental Petroleum Corp rose to $1.1 billion the estimated investment for the world’s largest direct air capture project due to inflation costs, Chief Executive Officer Vicki Hollub said on Wednesday.
The U.S. oil and gas producer earlier this year estimated costs between $800 million and $1 billion.
“Given the inflationary pressures felt across the economy, especially for construction materials and labor, we now expect the first plant to cost approximately $1.1 billion,” Hollub told analysts in a webcast to discuss the company’s third quarter results.
(Reporting by Sabrina Valle in Houston, and Ruhi Soni in Bengaluru; Editing by Chris Reese)
