Occidental Petroleum Co. will sell non-strategic acreage in the Permian basin to an affiliate of Colgate Energy Partners III LLC for $508 million, subject to adjustments for an effective Apr. 1, 2021 closing date.
The transaction is expected to close third-quarter 2021 and includes about 25,000 net acres in Texas’ Southern Delaware basin. Current production is about 10,000 boe/d from about 360 active wells. Proceeds from the sale will be applied to debt reduction.
President and Chief Executive Officer Vicki Hollub said that “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.”
Colgate Energy is based in Midland and is a private, independent exploration and production company focused on acquiring and developing conventional and unconventional oil properties in Delaware basin.
