Shearman & Sterling advised Orion Mine Finance on its agreement to acquire Occidental Petroleum Corporation’s (Oxy) Wyoming, Colorado and Utah Land Grant assets for about $1.33 billion.
The transaction, which is expected to close in the fourth quarter of 2020, has a footprint of approximately 4.5 million mineral acres and 1 million fee surface acres. Oxy will retain all cash flow from currently producing oil and gas properties on the position, which are primarily cost-free royalties.
The assets to be acquired by Orion include mineral rights to the world’s largest known trona deposit. Trona is a mineral used to make soda ash, the principal ingredient in baking soda, global glass manufacturing, pollution control systems, as well as other critical chemical applications.