Please ensure Javascript is enabled for purposes of website accessibility

Occidental Petroleum in Talks to Sell African Oil Fields for More Than $500 Million

By Matthew DiLallo - Updated Apr 1, 2021 at 2:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The oil giant appears poised to take another step in reducing debt by selling assets.

According to a report by Reuters, Occidental Petroleum (OXY 5.68%) is in talks to sell its oil and gas fields in Ghana for more than $500 million. The prospective buyer is Boru Energy, an energy company backed by private equity giant Carlyle Group (CG) and led by former Tullow Oil CEO Aidan Heavey. 

Occidental Petroleum currently owns a 24% interest in the Jubilee field and a 17% interest in the TEN field in offshore Ghana. Tullow Oil operates both assets, making Boru's interest an intriguing twist. Heavey oversaw the development of Jubilee, which started production in 2010. Jubilee yielded 83,600 barrels of oil equivalent per day (BOE/D) last year, while TEN's output averaged 48,700 BOE/D.

An offshore oil production platform at sunset.

Image source: Getty Images.

Occidental Petroleum acquired these assets as part of its $55 billion purchase of Anadarko Petroleum in 2019. It had initially agreed to sell them to French energy giant Total (TTE 1.57%) for $8.8 billion as part of a package deal that included all of Anadarko's African assets. But a portion of that deal fell through because Algeria's government blocked the sale of Occidental's assets in that country to Total. The Ghana sale was contingent on closing the Algeria deal. 

While Occidental chose to hold its Algerian assets, it put its properties in Ghana back on the market. It appears to have finally found a buyer. If this deal closes, it will put Occidental one step closer to achieving its goal of selling $2 billion to $3 billion of assets this year to repay debt. That would help the company lift more of the weight that has been holding down its stock price since the Anadarko deal.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Occidental Petroleum Corporation Stock Quote
Occidental Petroleum Corporation
$67.72 (5.68%) $3.64
TotalEnergies Stock Quote
$54.34 (1.57%) $0.84
Carlyle Group L.P. Stock Quote
Carlyle Group L.P.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.