Occidental to offload Colombia onshore assets for $825m

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US-based oil producer Occidental has announced the sale of its onshore assets in Colombia to global investment firm The Carlyle Group for $825m.

The transaction includes entire onshore portfolio of Occidental in Colombia.

However, the Texas-based hydrocarbon exploration giant will continue to have a presence in the country with its exploration blocks offshore Colombia.

The sale includes operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins.

Occidental has well-established oil operations in Colombia, as it has been active in the country for more than four decades.

Currently, it produces 33 thousand barrels of oil per day from its onshore Colombia assets.

Occidental president and CEO Vicki Hollub said: “Occidental has operated in Colombia, in partnership with Ecopetrol, for more than 40 years and is honored to remain a key partner in driving the country’s energy evolution.

“We have expanded our strategic partnership with Ecopetrol to the onshore U.S. and to exploration blocks offshore Colombia. These highly prospective offshore blocks hold tremendous potential that could significantly bolster the country’s energy resources.”

Occidental holds 14 onshore blocks in Colombia

The sale of onshore portfolio is part of Occidental’s plans for $2bn of divestitures in 2020.

In Colombia, the oil company holds 14 onshore blocks, of which six blocks are in oil production and eight blocks in oil exploration.

In Llanos Norte Basin, Occidental has produced more than 1.4 billion barrels of oil since the discovery of the Caño Limón field in 1983.