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Occidental Petroleum to Sell African Oil Fields

Occidental Petroleum plans to sell its oil and gas fields in Ghana for $500 million. The buyer is Boru Energy, an energy company backed by private equity giant Carlyle Group and led by former Tullow Oil CEO Aidan Heavey.

Tullow Oil operates the assets and Boru’s interest is a big twist. Heavy regulated the development of Jubilee, which started production in 2010. Last year Jubilee yielded 83,600 barrels of oil equivalent per day while TEN’s output averaged 48,700 BOE/D.The American petroleum company owns a 24% interest in the Jubilee field and a 17% interest in the ten fields offshore Ghana.

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 m for $8.8 billion as part of a package deal that included all of Anadarko’s African assets. The deal partially fell 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.

The petroleum company has planned to hold its Algerian assets. In case the 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.

The Shares of Occidental Petroleum has advanced 2.85% to $27.38 on what proved to be an all-around favorable trading session for the stock market, with the S&P 500 Index SPX, +1.18% rising 1.18% to 4,019.87 and the Dow Jones Industrial Average DJIA, +0.52% rising 0.52% to 33,153.21. Occidental Petroleum Corp. closed $5.14 below its 52-week high ($32.52), which the company reached on March 5th.

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