Occidental to Sell Texas Shale Assets for $1 Billion
Occidental Petroleum is completing talks with Permian Resources to sell its Texas assets, Barilla Draw, for $1 billion, Reuters reports. The move is part of Occidental’s broader strategy to reduce its debt, which topped $18 billion at the end of the first quarter. The deal could close in the coming weeks unless a new bidder emerges for the Permian assets.
The Barilla Draw assets are expected to boost Permian Resources’ output by about 24,000 barrels of oil equivalent per day, making it the company’s biggest purchase since its $4.5 billion acquisition of Earthstone Energy last year.
The oil sector has seen a recent surge in deals, particularly in the U.S. shale region, driven by high oil prices and the fallout from the Ukraine conflict. Major oil companies are expected to sell off billions of dollars in non-core assets after a sharp increase in investment. The same Occidental recently reported that it was in talks with Ecopetrol of Colombia to buy a 30% stake in CrownRock, valuing the deal at $3.6 billion.
