Transaction Details: 

Ecopetrol has signed a JV to "participate" in Oxy's Central Midland Basin property. 

This deal closed on November 13, 2019.

The deal will see Ecopetrol paying Oxy $750 million in cash plus $750 million in carried capital in exchange for 49% interest in the new venture.  Oxy will own 51% and operate the asset. During the carry period, Ecopetrol will pay 75 percent of Occidental's share of capital expenditures.

The real kicker for Ecopetrol will be its ability to book 160 MMboe (Million barrels of oil equivalent) of proven undeveloped reserves at the close of the transactions

The joint venture allows Occidental to accelerate its development plans in the Midland Basin. Occidental will retain production and cash flow from its existing operations in the Midland Basin.

Map, Area of Interest

Source : Occidental Petroleum

Permian - Midland Basin Deal Activity In Last 12 Months