Image: Oil Now

American Oil Company, Occidental Petroleum Corporation, has sold its stake in the Jubilee and TEN oilfields offshore Ghana for $750 million. The two oilfields have been sold to Kosmos Energy, who paid $550 million, and the Ghana National Petroleum Corporation, who paid $200 million.

Kosmos already owns a stake in both oilfields, with the acquisition bringing the company’s stakes up to 42% and 28%, respectively. Financed by a $400 million bridge loan, which will be refinanced with a future bond offering, a share sale worth $100 million will finance the rest of the proceeds.

Occidental Petroleum acquired the two oilfields in 2019 as part of the deal when the company bought Anadarko Petroleum Corporation. The sale forms part of the company’s overall debt reduction strategy, bringing the company’s asset sales up to approximately $2 billion over the past year. According to the company, Occidental’s debt increased five times over to approximately $48 billion since the Anadarko buyout. The sale, therefore, will enable Occidental to meet debt reduction targets, while focusing on other assets worldwide.