EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
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| Nine Months Ended |
| Year Ended |
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| September 30 |
| December 31 |
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| 2007 |
| 2006 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Income from continuing |
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operations |
| $ | 3,630 |
| $ | 3,332 |
| $ | 4,202 |
| $ | 4,838 |
| $ | 2,197 |
| $ | 1,410 |
| $ | 1,131 |
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Add: |
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Minority interest(a) |
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| 44 |
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| 95 |
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| 111 |
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| 74 |
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| 76 |
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| 62 |
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| 77 |
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Adjusted income from equity |
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investments(b) |
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| (14 | ) |
| (51 | ) |
| (52 | ) |
| (53 | ) |
| (5 | ) |
| 72 |
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| 308 |
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| 3,660 |
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| 3,376 |
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| 4,261 |
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| 4,859 |
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| 2,268 |
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| 1,544 |
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| 1,516 |
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Add: |
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Provision (credit) for taxes on |
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income (other than foreign oil |
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and gas taxes) |
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| 1,098 |
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| 1,286 |
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| 1,545 |
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| 632 |
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| 891 |
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| 593 |
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| (74 | ) |
Interest and debt expense(c) |
|
| 297 |
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| 207 |
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| 292 |
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| 300 |
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| 266 |
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| 335 |
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| 310 |
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Portion of lease rentals |
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representative of the interest |
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factor |
|
| 25 |
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| 30 |
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| 52 |
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| 47 |
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| 40 |
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| 8 |
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| 6 |
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| 1,420 |
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| 1,523 |
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| 1,889 |
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| 979 |
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| 1,197 |
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| 936 |
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| 242 |
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Earnings before fixed charges |
| $ | 5,080 |
| $ | 4,899 |
| $ | 6,150 |
| $ | 5,838 |
| $ | 3,465 |
| $ | 2,480 |
| $ | 1,758 |
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Fixed charges |
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Interest and debt expense |
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including capitalized |
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interest(c) |
| $ | 343 |
| $ | 245 |
| $ | 347 |
| $ | 326 |
| $ | 281 |
| $ | 341 |
| $ | 321 |
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Portion of lease rentals |
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representative of the interest |
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factor |
|
| 25 |
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| 30 |
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| 52 |
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| 47 |
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| 40 |
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| 8 |
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| 6 |
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Total fixed charges |
| $ | 368 |
| $ | 275 |
| $ | 399 |
| $ | 373 |
| $ | 321 |
| $ | 349 |
| $ | 327 |
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Ratio of earnings to fixed charges |
|
| 13.80 |
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| 17.81 |
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| 15.41 |
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| 15.65 |
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| 10.79 |
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| 7.11 |
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| 5.38 |
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(a) | Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges. |
(b) | Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received. |
(c) | Includes proportionate share of interest and debt expense of less-than-50-percent-owned equity investments. The nine months ended September 30, 2007 amount includes a pre-tax interest charge of $167 million for the redemption and partial repurchase of various debt issues. |