May 3 (Reuters) - Occidental Petroleum ( 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 ( BRK/A ), 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.

In February, Occidental's long-time Chief Executive Vicki

Hollub said the Federal Trade Commission's (FTC) second request

for information on the company's $12 billion takeover of

CrownRock had pushed back the deal's closing date to the second

half of this year, forcing the Houston-based oil producer to

postpone planned asset sales worth up to $6 billion.

Occidental plans to take on $9.1 billion of new debt to help

fund its deal for CrownRock.

However, Occidental has kicked off the sale process for the

Barilla Draw assets, as it sees an opportunity to attract strong

interest from other Permian oil producers who have completed

their recent dealmaking spree, the sources said.

The assets cover approximately 27,500 net acres and produces

around 24,400 barrels of oil equivalent per day, the sources

added.