Occidental Petroleum Corp. is selling off 25,000 net acres in its West Texas holdings in the Permian Basin, along with the production, to private equity (PE) sponsored Colgate Energy Partners III LLC.

Colgate

The $508 million deal by Oxy, as it is better known, includes 25,000 net acres in Reeves and Ward counties within the Delaware sub-basin, with about 360 active wells and production of 10,000 boe/d. Houston-based Oxy has an estimated 2.9 million net acres in the Permian that are spread across the Delaware and Midland sub-basins.

Proceeds from the sale, set to be completed by the end of September, would be used to reduce Oxy debt.

“We continue to advance our divestiture and deleveraging goals while delivering value for our shareholders,” said CEO Vicki Hollub. “This...