Oxy To Sell Delaware Basin Assets To Permian Resources For $818-M

US oil and gas producer Occidental Petroleum said it would sell certain Delaware Basin assets in Texas and New Mexico to Permian Resources for about $818 million as it plans to cut down debt, Seher Dareen and Sourasis Bose reported for Reuters.

Oxy's deal with Permian Resources would consist of a total of 29,500 net acres in the Barilla Draw Field of the Permian Basin, the largest shale oil belt in the world. I Photo: Oxy

It also plans to divest some $152 million worth of assets, bringing its total year-to-date proceeds of closed or announced divestments to $970 million.

Occidental, which is planning to take on additional debt to fund its $12 billion takeover of rival CrownRock, has said it plans to sell up to $6 billion of assets within 18 months of closing the CrownRock deal.

Occidental has debt of over $18 billion at the end of the first quarter. Berkshire Hathaway owns nearly 29% of Occidental.

The deal with Permian Resources, reported by Reuters last week, would consist of a total of 29,500 net acres in the Barilla Draw Field of the Permian Basin, the largest shale oil belt in the world, potentially boosting Permian Resources' output by an estimated combined net production of 15,000 barrels of oil equivalent per day (boepd) in the fourth quarter of 2024.