The sale includes approximately 25,000 net acres in the Southern Delaware Basin.
Located adjacent to Colgate’s existing position in Reeves and Ward counties, the Permian Basin assets have approximately 10,000 barrels of oil equivalent per day (boepd) of production capacity from about 360 active wells.
Proceeds from the sale will be used by Occidental to reduce debt.
Occidental president and CEO Vicki Hollub said: “We continue to advance our divestiture and deleveraging goals while delivering value for our shareholders.
“This transaction brings our post-Colombia divestiture total to over $1.3bn of the planned $2bn to $3bn, and since August 2019 we have divested more than $9bn of assets.”
Colgate co-CEO Will Hickey said that the acquisition of these assets in the core of the Southern Delaware Basin is a transformational deal for the company.
Hickey added: “It is a great mix of low decline production and high rate of return locations that will immediately compete for capital with our existing portfolio.
“This acquisition, along with the recently acquired Luxe assets, truly puts Colgate in a differentiated position.
“These two transactions complement each other perfectly, creating a scaled business with increased relevance in public markets, and ample liquidity to execute on our highly accretive development program.”
In October 2020, Occidental signed a deal to divest its onshore assets in Colombia to The Carlyle Group for approximately $825m.
The transaction included operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins.
Occidental, however, retained exploration blocks offshore Colombia.