Occidental Petroleum Corporation (NYSE: OXY) has announced that it has signed an agreement to sell its onshore assets in Colombia to The Carlyle Group for a total consideration of approximately $825 million.
According to Oxy, $700 million of the agreed amount will come up front and the remainder will be payable subject to certain production and commodity price targets. The deal, which is expected to close in the fourth quarter of 2020, includes operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins. Oxy said it will retain a presence in the country with its exploration blocks offshore Colombia.
“Occidental has operated in Colombia, in partnership with Ecopetrol, for more than 40 years and is honored to remain a key partner in driving the country’s energy evolution,” Oxy President and CEO Vicki Hollub said in a company statement.
“We have expanded our strategic partnership with Ecopetrol to the onshore U.S. and to exploration blocks offshore Colombia. These highly prospective offshore blocks hold tremendous potential that could significantly bolster the country’s energy resources,” Hollub added.
Oxy has announced over $2 billion of divestitures in 2020 that are expected to close by year-end and noted that it continues to advance additional asset sales. Back in August, the business revealed that it had entered into a purchase and sale agreement to divest Wyoming, Colorado, and Utah Land Grant assets to Orion Mine Finance for approximately $1.33 billion. This deal is expected to close in the fourth quarter of this year.
Oxy describes itself as an international energy company with operations in the United States, the Middle East, Africa and Latin America. The company is one of the largest oil producers in the U.S. and a leading producer in the Permian and DJ Basins and the offshore Gulf of Mexico, according to its website.
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