Freeport-McMoRan Inc. completed a sale of onshore California oil and natural gas properties to Sentinel Peak Resources California for $592 million in cash before closing adjustments.
Under the terms of the agreement, Freeport can claim additional proceeds of $50 million per year in 2018, 2019 and 2020 if the price of Brent crude oil averages $70 per barrel or higher in the respective year, according to a Dec. 30 news release.
In October, Freeport said it would sell the oil and gas assets for $742 million, including the cash and the subsequent payments of $50 million, to help repay debt. Sentinel Peak, a Denver-based company backed by Quantum Energy Partners LLC, would be responsible for future abandonment obligations associated with the properties, which amounts to about $100 million.
Earlier in December, Freeport sold its deepwater Gulf of Mexico oil and gas assets to Anadarko Petroleum Corp. for $2 billion in cash and up to $150 million in contingent payments.