Ecopetrol in $3.6 Billion Talks to Acquire CrownRock Stake from Occidental

20 Jul, 2024

Ecopetrol in $3.6 Billion Talks to Acquire CrownRock Stake from Occidental

Ecopetrol, Colombia's state-owned energy company, is in discussions with Occidental Petroleum to potentially acquire a 30% stake in shale oil producer CrownRock, a deal valued at approximately $3.6 billion.

The negotiations, disclosed by Occidental in an SEC filing, outline a structure for Ecopetrol’s acquisition of an undivided interest in CrownRock assets. If the deal does not proceed, Ecopetrol has the option to acquire the assets through the Rodeo Midland Basin Joint Venture, resulting in a 49% indirect ownership.

This follows Occidental's December acquisition of CrownRock in a $12 billion cash-and-stock deal, which included debt. The transaction aligns with Occidental’s plan to sell $4.5 billion to $6 billion of assets post-acquisition. This move is controversial in Colombia due to President Gustavo Petro's push for a fracking ban.