Occidental sells its onshore Colombia assets to Carlyle for US$700 million

Occidental has agreed to sell its onshore Colombia assets to Carlyle Group for an upfront consideration of US$700 million. The purchase price could rise to US$825 million, contingent on unspecified production and commodity price targets, which would trigger an additional US$125 million payment. Debt reduction through asset sales has been Occidental's top objective following its US$53 billion acquisition of Anadarko. Its onshore Colombia assets were non-core and a clear divestment candidate. Along with the sale of US mineral rights in August for US$1.3 billion, Occidental's Colombia sale will take the company to its planned target of US$2 billion in divestments by year-end 2020. Total divestment proceeds since acquiring Anadarko now total US$8 billion. Further sales are needed to reach its post-deal target of US$10-$15 billion, with its portfolios in Africa and Middle East the most likely regions to be sold next.