Occidental sells Delaware Basin assets for USD 818 million

Occidental Petroleum sells some of its Delaware Basin assets to Permian Resources for USD 818 million, to reduce debt and optimize its asset portfolio.

Share:

Staged Occidental Petroleum logo

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Occidental Petroleum, a major player in the US oil industry, sells strategic assets in the Delaware Basin to Permian Resources.
This transaction is part of a strategy to reduce debt, following the acquisition of CrownRock for USD 12 billion.
At the end of the first quarter, Occidental’s debt exceeded 18 billion USD. Occidental also plans to sell an additional USD 152 million worth of assets, bringing the total of divestments announced or completed this year to USD 970 million.
The aim is to dispose of up to 6 billion USD worth of assets within 18 months of concluding the agreement with CrownRock.

Impact on Permian Resources and the market

Permian Resources acquires 29,500 net acres in the Barilla Draw field, located in the Permian Basin, the world’s largest shale oil basin.
This acquisition could increase Permian Resources’ combined net production by 15,000 barrels of oil equivalent per day (boepd) in the fourth quarter of 2024.
The sale marks Permian Resources’ largest acquisition since the purchase of Earthstone Energy for US$4.5 billion last year.
The transaction is expected to close in the third quarter of 2024, strengthening Permian Resources’ position in the sector.

Analysis of strategic implications

The sale of assets by Occidental Petroleum to Permian Resources is strategic in several respects.
Firstly, it enables Occidental to reduce its debt while focusing on its most profitable assets.
Secondly, it provides Permian Resources with an opportunity to significantly increase its production, thereby consolidating its position in the shale oil market.
For Occidental, the transaction is also a response to the expectations of investors, including Berkshire Hathaway, which holds nearly 29% of Occidental’s shares.
Prudent debt management and optimization of the asset portfolio are crucial to maintaining shareholder confidence and ensuring sustainable growth.

Future prospects and reflections

The conclusion of this sale between Occidental and Permian Resources illustrates a broader trend in the oil industry: the strategic reorganization of asset portfolios to improve efficiency and profitability.
This transaction could encourage other companies to adopt similar strategies, aimed at optimizing their assets and reducing debt in an uncertain economic environment.
For Occidental, this sale is an important step in its strategy of deleveraging and strategic repositioning.
For Permian Resources, it represents an opportunity to achieve substantial growth and strengthen its production capacity.
The success of these initiatives could define future trends in the oil market, influencing the strategic decisions of major players in the sector.

A traditional leader from the Niger Delta is seeking compensation before Shell’s onshore asset sale, citing decades of unaddressed pollution in his kingdom.
The Oxford Energy Institute study shows that signals from weekly positions and the Brent/WTI curve now favor contrarian strategies, in a market constrained by regulation and logistics affected by international sanctions. —
New Stratus Energy has signed a definitive agreement with Vultur Oil to acquire up to 32.5% interest in two onshore oil blocks located in the State of Bahia, Brazil, with an initial investment of $10mn.
Clearview Resources has completed the sale of all its shares to a listed oil company, exiting Canadian financial markets following shareholder and court approval.
The Brazilian government has approved an offshore drilling project led by Petrobras in the Equatorial Margin region, weeks before COP30 in Belém.
In Taft, a historic stronghold of black gold, Donald Trump's return to the presidency reopens the issue of California's restrictions on oil production and fuels renewed optimism among industry stakeholders.
Vantage Drilling halted a 260-day drilling contract for the vessel Platinum Explorer following a rapid evolution of international sanctions regimes that made the campaign non-compliant with the applicable legal framework shortly after it was signed.
Paratus Energy Services received $58mn through its subsidiary Fontis Energy in Mexico, initiating the repayment of arrears via a government-backed fund established to support investment projects and ensure supplier payments.
Washington ties the removal of additional duties to a verifiable decline in India’s imports of Russian crude, while New Delhi cites already-committed orders and supply stability for the domestic market.
The decline in imports and the rise in refining in September reduced China’s crude surplus to its lowest in eight months, opening the way for tactical buying as Brent slips below 61 dollars.
Chinese executive Zhou Xinhuai, 54, resigned from his post as chief executive of CNOOC Limited after holding the role since April 2022. A strategic reorganization is underway.
Texas-based SM Energy gains full support from its banking syndicate, maintaining a $3bn borrowing base and easing short-term debt maturity terms.
Halliburton and Aker BP have completed the first umbilical-less tubing hanger installation on the Norwegian continental shelf, paving the way for digitised offshore operations with reduced infrastructure.
The US group has finalised operations at the Begonia field, marking its first offshore deepwater intervention in Angola’s Block 17/06, located 150 kilometres off the coast.
Prolonged attacks on fuel convoys have depleted stocks, destabilised power generation and disrupted economic activity in Bamako and surrounding regions.
Nigerian group Dangote has reduced crude supply to its refinery, citing a strategic adjustment to high oil prices and denying any technical failure.
Reliance Industries reported a 9.67% increase in net profit in the second quarter of fiscal year 2025–2026, driven by recovering petrochemical margins and continued growth in its retail and telecom operations.
An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The European Commission imposes new rules requiring proof of refined crude origin and excludes the use of mass-balancing to circumvent the Russian oil ban.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.