This story was updated June 19 to specify that Oxy's Permian resources business is reducing its position and generating $600 million in net proceeds from the sales.
Occidental Petroleum Corp. agreed to several transactions in the Permian basin, noting the transactions require no net cash outlay and add 3,500 boe/d to the company’s production.
Occidental will reduce its Permian resources business’s position by 13,000 net acres, divesting non-strategic acreage in Andrews, Martin, and Pecos counties and adding acreage in Glasscock County. Occidental said the Permian resources transactions will generate $600 million in net proceeds. The divested acres had no significant near-term development plans.
Separately, Hess Corp. is selling for $600 million a carbon dioxide enhanced oil recovery (EOR) property to Occidental, which will assume operatorship when the transaction is final.
The EOR transaction included acquisition of working interests in the Seminole-San Andres unit, a CO2 flood, and interests in the Seminole gas processing plant, source fields at the Bravo Dome unit and West Bravo Dome unit, and the Sheep Mountain and Rosebud CO2 pipelines.
Occidental has had an ownership interest in the EOR assets since 2000. The Seminole-San Andres unit will become Occidental’s largest domestic oil producing EOR unit. The assets produced an average of 8,200 boe/d in 2016 net to Hess. The agreement, subject to regulatory approvals, is expected to close Aug. 1.
