CrownRock Holdings is seeking to raise up to $1.7bn through the sale of its stake in Occidental Petroleum, reported Bloomberg.  

The sale involves 29.6 million shares, which CrownRock Holdings received as part of a $12bn deal that included the divestiture of the oil and gas company CrownRock to Occidental. 

The shares are being offered at a discount of up to 1.2% from Occidental's closing price on 12 August, with JPMorgan Chase, Morgan Stanley and the Royal Bank of Canada serving as the underwriters.  

CrownRock Holdings, co-founded by Texas oil magnate Tim Dunn and Lime Rock Partners, owns a general partner, which owned CrownRock LP. 

Occidental's acquisition of CrownRock, completed earlier this month, is expected to enhance its operations in the Permian Basin.  

The cash and stock transaction, which includes the assumption of CrownRock debt, adds production capacity and undeveloped locations to Occidental's portfolio. 

The acquired assets, comprising more than 94,000 net acres, are adjacent to Occidental's existing operations in the Midland Basin.  

As per the announcement, this location is expected to create synergies and streamline operations.  

Following the completion of the deal, Occidental president and CEO Vicki Hollub said: “By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company’s history even stronger and more differentiated.” 

Occidental, which reported debt exceeding $18bn at the end of the first quarter, is also executing a debt reduction plan.  

This strategy involves divesting assets worth between $4.5bn and $6bn within 18 months post-acquisition. 

In alignment with this strategy, Occidental recently agreed to sell Delaware Basin assets to Permian Resources for around $818m.  

The divestment includes acreage in Texas and New Mexico, along with oil and gas infrastructure and water assets.