Texas-based Occidental Petroleum will raise around $600m by divesting some of its non-strategic assets in the Permian Basin.

It will cut down its position in the Permian Resources by 13,000 net acres. In this regard, non-core acreage in Andrews, Pecos and Martin Counties will be divested by the oil and gas company.

Occidental Petroleum stated that it doesn’t have any major near-term development plans for the divested assets.

The oil and gas firm has also acquired additional acreage in Glasscock County to improve a future core development area grow its value.

In another transaction, Occidental agreed to raise its ownership stake and become an operator of a CO2 enhanced oil recovery (EOR) property in the Permian Basin. In this connection, independent energy company Hess has agreed to divest some of its stakes to Occidental for $600m.

Occidental, as part of the deal, will acquire 34.2% stake in Seminole-San Andres Unit and 46.6% stake in the Seminole Gas Processing Plant from Hess in Texas. It will also acquire the West Bravo Dome C02 field in New Mexico which is fully owned by Hess along with a 9.9% non-operated stake of the company in the Bravo Dome unit in New Mexico.

In all the EOR assets acquired from Hess, Occidental had been maintaining ownership stake since 2000.

Occidental Petroleum president and CEO Vicki Hollub said: “These transactions support our pathway to breakeven at $50 after dividend and production growth and our long-term, returns-focused value proposition.

“The combined results accelerate cash flow and enhance our future returns by exchanging low-priority development acreage for low decline, low capital intensity EOR production that has significant opportunity for value improvement.

Overall, through its sale and purchases of assets, Occidental will add about 3,500 barrels of oil equivalent per day to its production without any net cash outlay.

All the transactions are likely to be closed in the third quarter, stated Occidental.