Houston-based Occidential Petroleum said last week it is forming a joint venture with Bogota-based Ecopetrol to develop 97,000 net acres of Oxy’s Midland Basin properties in Howard, Martin and Midland counties. Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for 49 percent interest in the JV. Occidential will own 51 percent and operate the JV. In its July 31 announcement, Oxy said, “The joint venture allows Occidential to accelerate its development plans in the Midland Basin, where it currently has minimal activity. Occidential will retain production and cash flows from its existing operations in Midland Basin.” Closing is expected in 2019Q4.
