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

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.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.