Occidental Petroleum is exploring a sale of its assets in the Permian basin’s Barilla Draw region, which could garner over $1bn, reported Reuters, citing sources. 

The sale is part of the company’s wider strategy to reduce its debt, which was reported at $18.5bn at the end of 2023.  

Sources indicated that Occidental is working with a financial adviser on the potential divestiture. 

A representative for Occidental, which is backed by Berkshire Hathaway, declined to comment on the news, the publication said.  

The divestment follows the deal to acquire CrownRock, which has been delayed by the FTC’s request for additional information.  

The delay has subsequently postponed Occidental’s planned asset sales, originally intended to reach up to $6bn.  

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Occidental is also preparing to take on approximately $9.1bn in new debt to fund the CrownRock deal. 

For Barilla Draw assets, the company anticipates strong interest from other oil producers in the Permian basin, particularly those who have recently concluded their own mergers and acquisitions, the sources said. 

The assets in question span around 27,500 net acres and produce an estimated 24,400 barrels of oil equivalent per day. 

Earlier this year it was reported that Occidental is considering the sale of its stake in WES, a natural gas pipeline operator in the US, potentially valued at over $20bn, including debt.  

Occidental holds a 49% stake in WES and maintains operational control.  

This news comes in the wake of Exxon Mobil‘s completion of the nearly $60bn acquisition of Pioneer Natural Resources, another key player in the Permian basin.