Occidental Petroleum (NYSE: OXY) announced today that it has agreed to sell its onshore assets in Colombia to private equity giant The Carlyle Group (NASDAQ: CG). The oil company will receive up to $825 million for the assets, with $700 million coming at closing and the remainder subject to production and commodity price targets. Occidental Petroleum is including its operations and working interest in the Llanos Norte, Middle Magdalena, and Putumayo Basins, which are part of a partnership with the country's state oil company Ecopetrol (NYSE: EC).
Ecopetrol (EC) is trying to capture more demand through expanding crude oil sales to South Korea and India.
Oil prices rose on hurricane outages on Tuesday morning, although the release of the OPEC and IEA monthly market reports did little to shake the long-term bearish sentiment in oil markets