Occidental Shares Fall in Europe as Ecuador Cancels Contract

Shares of Occidental Petroleum Corp., the fourth-largest U.S. oil company by market value, fell in Europe after a production agreement with Ecuador was canceled by the government because of a dispute.

The shares fell the equivalent of 78 cents to $98.37 in German trading as of 11:53 a.m. Frankfurt time. The stock yesterday closed at $99.15 in New York.

Ecuador has the right to seize the company's assets, the Los Angeles-based company said yesterday in a statement. Occidental will lose about 7 percent of its annual oil production by vacating the country, where it has operated since 1985.

The company said it's ``committed'' to an amicable settlement and is evaluating legal options. An after-hours call yesterday to the office of spokesman Lawrence P. Meriage wasn't immediately returned.
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