Occidental Petroleum (Oxy) expects to close on the Barilla Draw divestment by the end of third-quarter 2024, and will use proceeds from the $818-million transaction for debt repayments, Oxy said Aug. 19 in a press release.

Houston-based Oxy plans to achieve 85% of its near-term debt reduction target of $4.5 billion by the end of third-quarter 2024, according to the company’s CEO Vicki Hollub.

In the third quarter alone, Oxy has achieved $3 billion in principal debt reduction, the company said in the release.

Oxy plans to reduce its debt to $6 billion within the 18 month period after the Aug. 1 close of its $12 billion acquisition of CrownRock LP.

Such use of proceeds will push Oxy’s total year-to-date debt redemptions to over $3.8 billion, or around 85% of its target.

“We believe our recent financial actions strengthen our balance sheet and accelerate our shareholder return pathway,” Hollub said in the release.

Affiliates of Oxy sold 19.5 million common units of Western Midstream Partners raising $700 million from a public offering announced Aug. 12. Oxy has now reached approximately $1.7 billion in completed or announced divestments in 2024.  

Proceeds from Oxy’s ongoing divestiture program will continue to go toward reducing the company’s debt. Oxy plans to continue to advance deleveraging via free cash flow, the company said in the release.

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