Occidental Announces Sale of its Onshore Assets in Colombia to The Carlyle Group
October 01 2020 - 9:00AM
Occidental (NYSE: OXY) today announced it has signed an agreement
to sell its onshore assets in Colombia to The Carlyle Group for
total consideration of approximately $825 million, with $700
million up front and the remainder payable subject to certain
production and commodity price targets. The transaction, which is
expected to close in the fourth quarter of 2020, includes
operations and working interests in the Llanos Norte, Middle
Magdalena and Putumayo Basins. Occidental will retain a presence in
country with its exploration blocks offshore Colombia.
“Occidental has operated in Colombia, in partnership with
Ecopetrol, for more than 40 years and is honored to remain a key
partner in driving the country’s energy evolution,” said President
and CEO Vicki Hollub. “We have expanded our strategic partnership
with Ecopetrol to the onshore U.S. and to exploration blocks
offshore Colombia. These highly prospective offshore blocks hold
tremendous potential that could significantly bolster the country’s
energy resources.”
Occidental has announced over $2 billion of divestitures in 2020
that are expected to close by year-end and continues to advance
additional asset sales.
About Occidental
Occidental is an international energy company with operations in
the United States, Middle East, Africa and Latin America. We are
one of the largest oil producers in the U.S., including a leading
producer in the Permian and DJ Basins, and offshore Gulf of Mexico.
Our midstream and marketing segment provides flow assurance and
maximizes the value of our oil and gas. Our chemical subsidiary
OxyChem manufactures the building blocks for life-enhancing
products. Our Oxy Low Carbon Ventures subsidiary is advancing
leading-edge technologies and business solutions that economically
grow our business while reducing emissions. We are committed to
using our global leadership in carbon dioxide management to advance
a lower-carbon world. Visit oxy.com for more information.
Cautionary Statement Concerning
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties that could materially affect
liquidity, cash flows, expected results of operations and business
prospects. Actual results may differ from anticipated results,
sometimes materially, and reported results should not be considered
an indication of future performance. Factors that could cause
results to differ include, but are not limited to: the scope and
duration of the COVID-19 pandemic and actions taken by governmental
authorities and other third parties in response to the pandemic;
Occidental’s indebtedness and other payment obligations, including
the need to generate sufficient cash flows to fund operations;
Occidental’s ability to consummate the transaction with The Carlyle
Group, including obtaining any required regulatory approvals;
Occidental’s ability to successfully monetize select assets, repay
or refinance its debt and the impact of changes in Occidental’s
credit ratings; assumptions about energy markets; global and local
commodity and commodity-futures pricing fluctuations; supply and
demand considerations for, and the prices of, Occidental’s products
and services; actions by the Organization of Petroleum Exporting
Countries (“OPEC”) and non-OPEC oil producing countries; results
from operations and competitive conditions; future impairments of
Occidental’s proved and unproved oil and gas properties or equity
investments, or write-downs of productive assets, causing charges
to earnings; unexpected changes in costs; availability of capital
resources, levels of capital expenditures and contractual
obligations; the regulatory approval environment, including
Occidental’s ability to timely obtain or maintain permits or other
governmental approvals, including those necessary for drilling
and/or development projects; Occidental’s ability to successfully
complete, or any material delay of, field developments, expansion
projects, capital expenditures, efficiency projects, acquisitions
or dispositions; risks associated with acquisitions, mergers and
joint ventures, such as difficulties integrating businesses,
uncertainty associated with financial projections, projected
synergies, restructuring, increased costs and adverse tax
consequences; uncertainties and liabilities associated with
acquired and divested properties and businesses; uncertainties
about the estimated quantities of oil, natural gas and natural gas
liquids reserves; lower-than-expected production from development
projects or acquisitions; Occidental’s ability to realize the
anticipated benefits from prior or future streamlining actions to
reduce fixed costs, simplify or improve processes and improve
Occidental’s competitiveness; exploration, drilling and other
operational risks; disruptions to, capacity constraints in, or
other limitations on the pipeline systems that deliver Occidental’s
oil and natural gas and other processing and transportation
considerations; general economic conditions, including slowdowns,
domestically or internationally, and volatility in the securities,
capital or credit markets; uncertainty from the expected
discontinuance of LIBOR and transition to any other interest rate
benchmark; governmental actions and political conditions and
events; legislative or regulatory changes, including changes
relating to hydraulic fracturing or other oil and natural gas
operations, retroactive royalty or production tax regimes,
deepwater and onshore drilling and permitting regulations, and
environmental regulation (including regulations related to climate
change); environmental risks and liability under international,
provincial, federal, regional, state, tribal, local and foreign
environmental laws and regulations (including remedial actions);
potential liability resulting from pending or future litigation;
disruption or interruption of production or manufacturing or
facility damage due to accidents, chemical releases, labor unrest,
weather, natural disasters, cyber-attacks or insurgent activity;
the creditworthiness and performance of Occidental’s
counterparties, including financial institutions, operating
partners and other parties; failure of risk management;
Occidental’s ability to retain and hire key personnel;
reorganization or restructuring of Occidental’s operations; changes
in state, federal or foreign tax rates; and actions by third
parties that are beyond Occidental’s control.
Words such as “estimate,” “project,” “predict,” “will,” “would,”
“should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,”
“believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely”
or similar expressions that convey the prospective nature of events
or outcomes generally indicate forward looking statements. You
should not place undue reliance on these forward-looking
statements, which speak only as of this press release. Unless
legally required, we undertake no obligation to update, modify or
withdraw any forward-looking statements, as a result of new
information, future events or otherwise. Factors that could cause
actual results to differ and that may affect Occidental’s results
of operations and financial position appear in Part I, Item 1A
“Risk Factors” of Occidental’s Annual Report on Form 10-K for the
year ended December 31, 2019, and in Occidental’s other filings
with the U.S. Securities and Exchange Commission.
Contacts
Occidental |
|
Media |
Investors |
Melissa E. Schoeb |
Jeff Alvarez |
713-366-5615 |
713-215-7864 |
melissa_schoeb@oxy.com |
jeff_alvarez@oxy.com |
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