Occidental Petroleum (OXY) has announced the sale of certain Delaware Basin assets in Texas and New Mexico to Permian Resources for approximately $818 million. This move is part of Occidental’s strategy to reduce its debt, which currently exceeds $18 billion. The company plans to sell up to $6 billion in assets within 18 months following its $12 billion acquisition of CrownRock.
The deal includes 29,500 net acres in the Barilla Draw Field of the Permian Basin, the largest shale oil belt in the world. Permian Resources expects the acquisition to boost its output by an estimated combined net production of 15,000 barrels of oil equivalent per day (boepd) by the fourth quarter of 2024.
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This deal marks a significant step for Permian Resources, adding to its portfolio and production capacity. The transaction is expected to close in the third quarter of 2024.