Western Oil (NYSE:OXY) is close to closing an agreement to sell assets in the Barilla Draw region of Texas to Permian Resources (PR) for approximately $1 billion.

If the talks do not end in failure, an agreement could be announced in the coming weeks. down Reuters report on Thursday, citing people familiar with the matter. A competing bidder could still emerge for the Permian Basin assets.

Reuters reported in early May that Occidental (OXY) was considering selling part of its Permian Basin operations, a move that could raise more than $1 billion.

The asset sale comes as Occidental (OXY) agreed to buy CrownRock in December 2023 in a deal valued at $12 billion. The deal is expected to close in August. Bloomberg reported Tuesday that Occidental (OXY) was touting the sale of up to $5 billion of blue-chip bonds in five installments to fund the acquisition of CrownRock, which has significant assets in the Permian Basin.