Occidental (NYSE: OXY) announced Wednesday it has agreed to sell its interests in two Ghana offshore fields for $750 million to Kosmos Energy ($550 million) and Ghana National Petroleum Corporation (GNPC) ($200 million), prior to closing adjustments to reflect an April 1, 2021 effective date.
The sale to Kosmos closed upon signing and the sale to GNPC is expected to close in the fourth quarter of 2021. The transaction includes Occidental’s interests in both the Jubilee and TEN fields, which combined had second quarter 2021 net production of 22 thousand barrels of oil equivalent per day.
Occidental classified the Ghana operations as held for sale, as of June 30, 2021. Separately, Occidental settled certain tax claims related to historical operations.
“With this transaction, we have achieved our post-Colombia divestiture target,” said President and Chief Executive Officer Vicki Hollub. “Proceeds from the Ghana asset sale will be applied to debt reduction. Combined, our divestiture program and free cash flow generation have enhanced our ability to reduce debt, as evidenced by the $4.5 billion we have repaid year to date. We remain committed to creating value for our shareholders through our deleveraging efforts.”