(Adds background, details on deal)
June 10 (Reuters) - Occidental Petroleum Corp said on Thursday it would sell some of its acreage in Texas’ Permian basin to an affiliate of private equity-backed Colgate Energy Partners III LLC for $508 million.
The oil producer has cut jobs, production and the value of its assets after the pandemic hammered fuel demand, piling pressure on a company that had taken on significant debt to acquire Anadarko Petroleum for $38 billion in 2019. The company's long-term net debt stood at $35.47 billion as of March 31, according to a regulatory filing, and has said it plans to sell between $2 billion and $3 billion in properties this year to reduce its debt. (bit.ly/3imcjXe)
The deal with Colgate Energy includes about 25,000 net acres in the Southern Delaware Basin in Texas with current production of about 10,000 barrels of oil equivalent per day (boepd) from about 360 active wells.
Occidental, which expects to close the deal by the third quarter, maintained its 2021 forecast for capital expenditure and production. (Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)