Oxy Sells Ghana Assets for $750MM

Oxy Sells Ghana Assets for $750MM
The transactions include Occidental's interests in both the Jubilee and TEN fields.

Occidental (NYSE: OXY) has announced that it has agreed to sell its interests in two Ghana offshore fields for $750 million to Kosmos Energy and Ghana National Petroleum Corporation (GNPC).

The sale to Kosmos, worth $550 million, closed upon signing and the sale to GNPC, worth $200 million, is expected to close in the fourth quarter of 2021. The transactions include Occidental’s interests in both the Jubilee and TEN fields. Combined, these assets had a second quarter 2021 net production of 22,000 barrels of oil equivalent per day.

Occidental classified the Ghana operations as held for sale as of June 30. The deals reflect an April 1 effective date.

“With this transaction, we have achieved our post-Colombia divestiture target,” Vicki Hollub, Occidental’s president and chief executive officer, said in a company statement.

“Proceeds from the Ghana asset sale will be applied to debt reduction. Combined, our divestiture program and free cash flow generation have enhanced our ability to reduce debt, as evidenced by the $4.5 billion we have repaid year to date,” Hollub added in the statement.

“We remain committed to creating value for our shareholders through our deleveraging efforts,” the Occidental CEO went on to say.

Back in June, Occidental announced continued progress on its divestment program with the sale of what it described as non-strategic Permian basin acreage for $508 Million. The deal, which sold the assets to an affiliate of Colgate Energy Partners III, LLC, included approximately 25,000 net acres in the Southern Delaware Basin in Texas with production of approximately 10,000 barrels of oil equivalent per day from about 360 active wells.

In its second quarter results statement, which is the company’s latest, Occidental revealed that it had repaid over $3 billion of long-term debt in July. The results statement showed a net loss attributable to common stockholders for the second quarter of 2021 of $97 million and adjusted income attributable to common stockholders of $311 million. This compared to a net loss attributable to common stockholders for the prior quarter of $346 million and an adjusted loss attributable to common stockholders of $136 million. Occidental’s third quarter results statement is scheduled to be released on November 4.

To contact the author, email andreas.exarheas@rigzone.com

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