Oil and gas producer Occidental Petroleum Corp. is in talks to sell $4.5 billion worth of energy assets in Africa and the Middle East to Indonesia's PT Pertamina in a bid to ease its debt load, Bloomberg News reported on July 29.
Pertamina is negotiating the acquisition of oil and gas stakes in countries including Ghana and the United Arab Emirates, the report said, citing people with knowledge of the matter.
The Indonesian company has also expressed interest in buying some of Occidental's assets in Algeria and Oman, the report said, adding that it has been discussing a purchase price of about $4.5 billion.
Occidental has been trying to sell assets to reduce the $40 billion debt it took on after its $38 billion purchase of Permian Basin rival Anadarko Petroleum last year, an ill-timed bet on rising oil prices.
The company's shares have plunged more than 60% this year amid the worst oil-and-gas industry downturn in years, and the company has cut staff and reduced expenses to deal with its massive debt levels. Shares were trading up 2.6% up before markets opened on Wednesday.
Occidental and Pertamina did not immediately respond to a Reuters request for comment.
Recommended Reading
What's Affecting Oil Prices This Week? (Feb. 3, 2025)
2025-02-03 - The Trump administration announced a 10% tariff on Canadian crude exports, but Stratas Advisors does not think the tariffs will have any material impact on Canadian oil production or exports to the U.S.
Exxon Slips After Flagging Weak 4Q Earnings on Refining Squeeze
2025-01-08 - Exxon Mobil shares fell nearly 2% in early trading on Jan. 8 after the top U.S. oil producer warned of a decline in refining profits in the fourth quarter and weak returns across its operations.
Are Shale Producers Getting Credit for Reining in Spending Frenzy?
2024-12-10 - An unusual reduction in producer hedging found in a Haynes and Boone survey suggests banks are newly open to negotiating credit terms, a signal of market rewards for E&P thrift.
Utica’s Encino Adds Former Marathon Director to Board
2024-12-16 - Brent J. Smolik, who most recently served on Marathon Oil’s board until its merger with ConocoPhillips, will join Encino Acquisition Partners as a director.
Chevron Targets Up to $8B in Free Cash Flow Growth Next Year, CEO Says
2025-01-08 - The No. 2 U.S. oil producer expects results to benefit from the start of new or expanded oil production projects in Kazakhstan, U.S. shale and the offshore U.S. Gulf of Mexico.