Occidental has completed the transaction to form a joint venture with Ecopetrol to develop 97,000 net acres of assets in the Midland basin for $750 million in cash plus $750 million in carried capital. Occidental will retain 51% of Rodeo Midland Basin. Presently, there are two rigs in operation in the area with activity expected to continue to increase with four rigs expected to be in operation by the end of 2020. The JV is expected to allow the Ecopetrol to incorporate proven reserves of approximately 160 million boe by the end of 2019.
Oxy has also completed the sale of certain non-core assets for proceeds of approximately $200 million which will be used for deleveraging.