California’s largest oil and gas producer could receive up to $500 million as part of a new joint venture (JV) to develop one of the most historically productive fields in the U.S.

California Resources Corp. (CRC) formed the JV with Colony HB2 Energy, an investment firm which agreed to fund the development of CRC’s flagship Elk Hills Field, the Los Angeles-based company said July 23 in a press release.

The partnership follows a strategy by CRC to pursue JVs that CFO Mark Smith told attendees of the Bank of America Merrill Lynch Energy Credit Conference last month allows the company to fund exploration and development capital despite reducing its budget to stay within cash flow.

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