Occidental Petroleum Reaches a Deal to Sell its Onshore Assets in Columbia

Occidental Petroleum (NYSE: OXY) announced today that it has agreed to sell its onshore assets in Colombia to private equity giant The Carlyle Group (NASDAQ: CG). The oil company will receive up to $825 million for the assets, with $700 million coming at closing and the remainder subject to production and commodity price targets. The company expects to close this deal during the fourth quarter.  

Occidental Petroleum is including its operations and working interest in the Llanos Norte, Middle Magdalena, and Putumayo Basins, which are part of a partnership with the country's state oil company Ecopetrol (NYSE: EC). Occidental will retain a presence in the country by keeping its offshore exploration blocks. Those assets are also part of a strategic partnership with Ecopetrol, as is a joint venture in the Permian Basin. Occidental CEO Vicki Hollub noted that those offshore exploration blocks are "highly prospective" and "hold tremendous potential that could significantly bolster the country's energy resources." 

Image source: Getty Images.

Continue reading

Source Fool.com