Dear Readers, We deeply regret having been offline for several days due to a technical issue that has now been resolved. We are still facing some minor issues that we hope will not interfere with the quality of the information provided. 
Ecopetrol looking at 30% stake purchase in US shale player. Ownership could go up to 49% of assets pending negotiations
Reporting by Oliver Griffin, Reuters
BOGOTA
EnergiesNet.com 07 22 2024
Colombia’s Ecopetrol (ECO.CN), opens new tab is in talks with U.S. oil producer Occidental Petroleum (OXY.N), opens new tab to possibly buy a 30% stake in shale oil producer CrownRock, in a transaction potentially worth $3.6 billion, the North American company said on Friday.
Ecopetrol, Colombia’s majority state-owned energy company, said it was in talks with Occidental in a separate statement on Friday but did not disclose details about the potential size or value of a stake, saying such decisions were subject to analysis.
“Occidental and Ecopetrol are engaged in discussions regarding a structure for Ecopetrol’s potential acquisition of an undivided 30% interest in the CrownRock assets,” Occidental said in an SEC filing.
If the deal goes ahead, Occidental expects the transaction to be worth approximately $3.6 billion, subject to customary purchase price adjustments.
If a deal on the transaction is not reached, “Ecopetrol will have an option to elect for the Rodeo Midland Basin Joint Venture to acquire the CrownRock assets, resulting in an indirect ownership by Ecopetrol of an undivided 49% interest in the CrownRock assets,” the filing said.
Occidental moved to buy shale oil producer CrownRock in December in a $12 billion cash-and-stock deal, which included debt.
In May, Occidental reaffirmed its plans to sell $4.5 billion to $6 billion of assets within 18 months of closing the CrownRock purchase, which it said could be completed by August.
Shale oil and gas production is highly controversial in Colombia, where the government of leftist President Gustavo Petro is pushing for an outright ban on fracking, much to the chagrin of factors in the country’s energy industry.
Despite this, Ecopetrol – Colombia’s largest company – has shale operations in the U.S. Permian basin.
Occidental expects to use any proceeds from a deal with Ecopetrol to pay down a portion of its term loans, the U.S. company said.
Reporting by Oliver Griffin; Editing by Anthony Esposito and David Evans
reuters.com 07 101 2024
