Occidental said Thursday it has entered into a definitive agreement to sell non-strategic acreage in the Permian Basin to an affiliate of Colgate Energy Partners III, LLC, for $508 million, subject to closing adjustments to reflect an April 1, 2021 effective date.
The transaction, which is expected to close in the third quarter of 2021, includes approximately 25,000 net acres in the Southern Delaware Basin in Texas with current production of approximately 10,000 barrels of oil equivalent per day from about 360 active wells.
Proceeds from the sale will be applied toward debt reduction, the company said.
“We continue to advance our divestiture and deleveraging goals while delivering value for our shareholders,” said President and Chief Executive Officer Vicki Hollub. “This transaction brings our post-Colombia divestiture total to over $1.3 billion of the planned $2 billion to $3 billion, and since August 2019 we have divested more than $9 billion of assets.”
The company’s 2021 guidance for capital and production remains unchanged.