Occidental Petroleum Corporation (NYSE:OXY) is exploring a sale of a part of its operations in the Permian Basin that could fetch more than $1 billion for the energy producer, according to people familiar with the matter. The company's divestment effort is linked to Occidental's broader plan to slash its debt, which stood at $18.5 billion at the end of 2023, the sources said, requesting anonymity as the discussions are confidential. Occidental, which is backed by Warren Buffett's Berkshire Hathaway (BRKa.N) is working with a financial adviser on the sale process for the assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian basin, the sources said, cautioning a deal is not guaranteed.

A spokesperson for Occidental declined comment.