Occidental Petroleum announces purchase, sale transactions in Permian Basin
Occidental Petroleum announced that it has agreed to a number of purchase and sale transactions in the Permian Basin. On a combined basis, these transactions require no net cash outlay and add approximately 3,500 barrels of oil equivalent per day to the company's production. Occidental will reduce its Permian Resources position by 13,000 net acres, divesting non-strategic acreage in Andrews, Martin and Pecos Counties and adding incremental acreage to enhance a future core development area in Glasscock County. Occidental also agreed to increase its ownership interests and assume operatorship of a CO2 enhanced oil recovery property. The net Permian Resources transactions will generate proceeds of approximately $0.6B. The divested acres had no significant near-term development plans while the acquired acreage provides additional value within the future development area. The Permian EOR transaction included the acquisition of working interests in the Seminole-San Andres Unit, a premier CO2 flood, interests in the Seminole Gas Processing Plant, source fields at Bravo Dome Unit and West Bravo Dome Unit and the Sheep Mountain and Rosebud CO2 pipelines for $0.6B. Occidental has had an ownership interest in these EOR assets since 2000. Seminole-San Andres Unit will become Occidental's largest domestic oil producing EOR unit. All the transactions are expected to close by the third quarter.