The Houston headquartered energy giant, Occidental Petroleum Corp., plans to develop Colombia’s offshore oil reserves after announcing that it will sell its mainland assets to the private investment firm Carlyle Group for US$825 million. The transaction is expected to close at the end of 2020 and includes the sale of all the company’s drilling and operations facilities in the Eastern Llanos, Middle Magdalena and Putumayo.

“Occidental has operated in Colombia, in partnership with Ecopetrol, for more than 40 years and is honored to remain a key partner in driving the country’s energy evolution,” said President and CEO Vicki Hollub. “We have expanded our strategic partnership with Ecopetrol to the onshore U.S. and to exploration blocks offshore Colombia. These highly prospective offshore blocks hold tremendous potential that could significantly bolster the country’s energy resources.” Colombia’s state-owned Ecopetrol is a partner in Occidental’s Permian basin, one of the largest oil deposits in the U.S., located between Texas and New Mexico. Ecopetrol plans to drill 100 unconventional reservoirs in the Permian basin next year to supply Asian markets.