**Ecopetrol Shelves Plans to Acquire Stake in CrownRock from Occidental**
In a significant development within the oil and gas industry, Ecopetrol, Colombia’s national oil company, has decided against pursuing its interest in acquiring a minority stake in CrownRock LP, a major shale oil producer owned by Occidental Petroleum. This move comes after Ecopetrol officials had earlier indicated a strong interest in buying a 30% stake in CrownRock, a deal valued at approximately $3.6 billion.
The potential acquisition of CrownRock was part of a larger strategic move by Ecopetrol to bolster its presence in the Permian Basin, one of the most prized oil and gas regions in the United States. However, it appears that Ecopetrol’s leadership has decided to forgo this opportunity, at least for the time being.
Despite the setback, Ecopetrol still maintains a significant option through its Rodeo Midland Basin Joint Venture with Occidental. This joint venture, established in 2019, allows Ecopetrol to acquire all of CrownRock’s assets if it chooses to, thereby gaining an indirect ownership stake of 49% in the Permian Basin assets. However, it is crucial to note that this option expires this month, and there is no guarantee that Ecopetrol will exercise it.
Occidental Petroleum, which is currently embroiled in a large-scale acquisition of CrownRock valued at $12 billion, is keen to utilize the proceeds from any deal for part of CrownRock to reduce its substantial debt, which stood at $18 billion by the end of the first quarter. The company has also announced plans to divest between $4.5 billion and $6 billion of its CrownRock assets within 18 months following the completion of the acquisition. These asset disposals aim to help Occidental Petroleum manage its financial obligations more effectively.
In a related development, Occidental has announced plans to sell a portfolio of Delaware Basin