(Piero Stewart, Energy Analytics Institute, 1.Oct.2020) — Houston-based Occidental Petroleum inked an agreement to divest its onshore assets in Colombia to The Carlyle Group for total consideration of $825mn.
Per the deal, $700mn is due up front and the remainder payable subject to certain production and commodity price targets, Carlyle said 1 Oct. 2020 in an official statement.
The transaction is expected to close in the fourth-quarter 2020, and includes operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins. Importantly, Occidental will retain a presence in country with its exploration blocks offshore Colombia.
“Occidental has operated in Colombia, in partnership with Ecopetrol, for more than 40 years and is honored to remain a key partner in driving the country’s energy evolution,” Oxy president and CEO Vicki Hollub in the statement.
“We have expanded our strategic partnership with Ecopetrol to the onshore US and to exploration blocks offshore Colombia. These highly prospective offshore blocks hold tremendous potential that could significantly bolster the country’s energy resources,” Hollub said.
Occidental has announced over $2bn of divestitures in 2020 that are expected to close by year-end and continues to advance additional asset sales.
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By Piero Stewart reporting from Caracas. © Energy Analytics Institute (EAI). All Rights Reserved.
