American oil and gas giant Occidental Petroleum is currently exploring a stake sale in shale oil producer CrownRock to Colombia’s Ecopetrol. Occidental acquired CrownRock in a $12 billion cash-and-stock deal back in December.
Ecopetrol, which is a majority state-owned company, is looking to acquire 30% of CrownRock, with the deal being potentially valued at $3.6 billion. If the primary deal doesn’t go through, Ecopetrol could acquire an indirect stake of 49% through Rodeo Midland Basin, a joint venture between the two companies.
Occidental revealed the discussion in an SEC filing made on Friday.
“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 shared adding that the proceeds from the deal will be used towards paying off the company’s term loans.
Back in May, Occidental said that it plans to sell between $4.5 billion and $6 billion worth of assets in CrownRock after it closes the purchase in August.
In a separate press release, Ecopetrol also informed the public about the ongoing negotiations with Occidental, saying that the “percentage of the assets and the price that Ecopetrol would pay are under analysis and assessment” by the company.