According to a Reuters report, Western Oil (NYSE: OXY) is in talks to sell its oil and gas fields in Ghana for more than $ 500 million. The potential buyer is Boru Energy, an energy company backed by a private equity giant Carlyle Group (NASDAQ: CG) and led by the former Tullow Oil CEO Aidan Heavey.
Occidental Petroleum currently owns a 24% stake in the Jubilee field and a 17% stake in the TEN field off Ghana. Tullow Oil taps both assets, making Boru’s interest an intriguing twist. Heavey oversaw the development of Jubilee, which began production in 2010. Jubilee produced 83,600 barrels of oil equivalent per day (BOE / D) last year, while TEN’s production averaged 48,700 BOE / J.
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 the French energy giant. Total (NYSE: TOT) for $ 8.8 billion as part of a global deal including all of Anadarko’s African assets. But part of that deal fell through as the Algerian government blocked the sale of Occidental’s assets in that country to Total. The sale to Ghana was conditional on the conclusion of the agreement with Algeria.
While Occidental has chosen to keep its Algerian assets, it has put its properties in Ghana back on the market. He seems to have finally found a buyer. If that deal goes through, it will take the West one step closer to achieving its goal of selling $ 2-3 billion in assets this year to pay off debt. This would help the company to further lift the weight that has maintained its share price since the deal with Anadarko.
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