Debt-laden Occidental Petroleum Corp said on Oct. 1 it has agreed to sell its onshore assets in Colombia to private-equity firm Carlyle Group Inc. for $825 million.
The international energy company based in Houston said it is continuing to advance other asset sales as it tries to find cash to pay off debt amid a crude price crash. It has so far announced over $2 billion worth of divestitures this year.
The Colombia assets sale, expected to close in the fourth quarter, includes the company's operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins.
The company has operated in the Andean country alongside Colombia's majority state-owned Ecopetrol for more than 40 years. The two companies also have a joint venture in the Permian Basin in the U.S.
Occidental said it will retain a presence in the South American country through its offshore exploration blocks.
"We have expanded our strategic partnership with Ecopetrol to the onshore U.S. and to exploration blocks offshore Colombia," Occidental CEO Vicki Hollub said in a statement. "These highly prospective offshore blocks hold tremendous potential that could significantly bolster the country's energy resources."
A spokesman for Ecopetrol said the company had no comment on the sale of assets.
Occidental's debt ballooned after it paid $38 billion to buy Anadarko Petroleum last year, an ill-timed bet on rising oil prices. The company had total long term debt of $36.03 billion as of the end of June, according to Refinitiv data.
In August, the company said it would sell some of its Wyoming, Colorado and Utah assets to Orion Mine Finance for about $1.33 billion.
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.