US mining and petroleum company Freeport-McMoRan (FCX) has completed the sale of its Californian-based onshore properties to Sentinel Peak Resources California.
During the transaction, FCX received cash proceeds of $592m.
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As per the agreement, FCX is also eligible to receive additional proceeds of $50m per year for three years in 2018, 2019 and 2020 if the price of Brent crude oil reaches $70 per barrel or higher at an average of one calendar year.
Last year FCX received more than $6.6bn through asset sale transactions, and also sold its Gulf of Mexico properties to Anadarko Petroleum for $2bn, reported Mining.com.
The company currently owns onshore oil and natural gas producing properties in South Louisiana, Gulf of Mexico, and natural gas production from the Madden area in Central Wyoming.
FCX also retains a strong copper asset portfolio.
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By GlobalDataBased in Phoenix, Arizona, FCX operates large, geographically diverse and long-lived assets of copper, gold and molybdenum.
Its vast portfolio includes the Grasberg minerals district in Indonesia, Morenci minerals district in North America and the Cerro Verde operation in South America.
Due to some ineffectual oil and gas acquisitions in the last few years, FCX has been struggling with the growing debt that swelled to $20bn.
