OAG360 Publishers Notes: This is the latest attempt by Oxy to reduce its massive $30+ billion dollar debt load in the wake of the Anadarko acquisition. After paying $200 million in Q3 preferred dividends to Berkshire Hathaway, this divesture gives $700 million in fresh upfront cash, along with longer term commodity price payments. Check out OAG360 Daily Energy Market Summary at 2 PM MST (https://www.youtube.com/user/enercominc/live) for more coverage of the asset sale and all things energy
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Debt-laden U.S. oil producer Occidental Petroleum Corp (N:OXY) said on Thursday it has agreed to sell its onshore assets in Colombia to private equity firm Carlyle Group Inc (O:CG) for $825 million.
The Houston energy company said the deal includes an up-front payment of $700 million, with the rest payable based on production and commodity price targets.
Occidental said the sale, which it expects to complete by the end of the year, includes operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins. The company said it is keeping its exploration blocks offshore Colombia.
Occidental, which has announced more than $2 billion of divestitures that it expects to complete this year as it works to pare its substantial debt load, said it continues to advance additional asset sales.
