EXHIBIT 99.1
For Immediate Release: February 3, 2010
Occidental Petroleum Replaces 206 Percent of 2009 Production
| ● | 2009 year-end proved reserves 3.23 billion BOE, an increase of 8 percent | |
| ● | Three-year reserve replacement ratio 160 percent |
LOS ANGELES, February 3, 2010 -- Occidental Petroleum Corporation (NYSE: OXY) announced today that at year-end 2009, the company's preliminary worldwide proved reserves totaled 3.23 billion barrels of oil equivalent (BOE) compared to 2.98 billion BOE at the end of 2008. In 2009, the company had proved reserve additions from all sources of 483 million BOE, compared to production of 235 million BOE, for a production replacement ratio of 206 percent.
Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, "We are pleased to have replaced 206 percent of our 2009 production largely through improved recovery and extensions and discoveries. Over the last three years, we replaced 160 percent of our production. Our finding and development costs in 2009 were $7.90 per BOE. For the last three-year period, our finding and development costs averaged about $15.10 per barrel."
As of December 31, 2009, 73 percent of the Company's proved reserves consisted of oil and 27 percent of gas. Of the total proved reserves, approximately 64 percent was in the United States and 36 percent were located in international locations. Approximately 23 percent of the proved reserves were proved undeveloped and 77 percent were proved developed.
Of the total reserve changes, improved recovery, which reflects the Company's enhanced oil recovery activities, represented 173 million BOE of proved reserves additions, mainly in California, Permian and Oman, through the Mukhaizna project.
Extensions and discoveries added another 92 million BOE of reserves, mainly in the Kern County discovery area, with smaller additions internationally. The Company added another 160 million BOE through purchases of proved reserves largely consisting of several domestic acquisitions in California and New Mexico and reflecting the Bahrain Field redevelopment project.
Revisions of previous estimates provided a net 58 million BOE additions to reserves. The additions included a net positive effect from production sharing contracts
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in the Middle East/North Africa. Domestic positive oil price-related revisions were more than offset by negative gas price-related revisions, and other changes in the United States and Argentina.
Occidental's costs incurred for exploration and development activities and acquisitions were $3.8 billion. The acquisition costs were primarily domestic, mainly in California and New Mexico.
For the three-year period 2007 through 2009, Occidental's proved reserve additions totaled 1.1 billion BOE, and total production equaled 663 million BOE, for a reserve replacement ratio of 160 percent. Total costs incurred during this three-year period were $16 billion.
About Oxy
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.
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| Contacts: | Richard S. Kline (media) |
richard_kline@oxy.com | |
| 310-443-6249 | |
| Chris Stavros (investors) | |
chris_stavros@oxy.com | |
| 212-603-8184 | |
| On the web: | www.oxy.com |
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| OIL AND GAS | ||||||||||||||||||
| PRELIMINARY RESERVES | ||||||||||||||||||
| The following table sets forth Occidental's net interests in quantities of proved developed and undeveloped reserves of crude oil, natural gas liquids (NGLs), condensate and natural gas and changes in such quantities. Crude oil reserves (in millions of barrels) include condensate and NGLs. Natural gas volumes (in billion cubic feet) have been converted to barrels of oil equivalent (BOE) based on energy content of 6,000 cubic feet of gas to one barrel of oil. | ||||||||||||||||||
| United | Latin | Middle East / | Total | |||||||||||||||
| States | America | North Africa | Million | |||||||||||||||
| Oil (b) | Gas (c) | Oil (b) | Gas (c) | Oil (b) | Gas (c) | BOE (d) | ||||||||||||
| Proved Developed and | ||||||||||||||||||
| Undeveloped Reserves | ||||||||||||||||||
| Balance at December 31, 2006 | 1,660 | 2,424 | 220 | 194 | 330 | 1,106 | 2,830 | |||||||||||
| Revisions of previous estimates | (20 | ) | 35 | (17 | ) | 5 | (43 | ) | (130 | ) | (95 | ) | ||||||
| Improved recovery | 114 | 406 | 17 | 5 | 53 | 6 | 254 | |||||||||||
| Extensions and discoveries | 1 | 5 | 14 | 19 | 2 | 11 | 23 | |||||||||||
| Purchases of proved reserves | 47 | 18 | - | - | 10 | - | 60 | |||||||||||
| Sales of proved reserves | - | - | - | - | - | - | - | |||||||||||
| Production | (95 | ) | (216 | ) | (25 | ) | (15 | ) | (44 | ) | (30 | ) | (208 | ) | ||||
| Balance at December 31, 2007 | 1,707 | 2,672 | 209 | 208 | 308 | 963 | 2,864 | |||||||||||
| Revisions of previous estimates | (243 | ) | (490 | ) | (8 | ) | (26 | ) | 137 | 328 | (145 | ) | ||||||
| Improved recovery | 99 | 281 | 44 | 46 | 46 | 21 | 247 | |||||||||||
| Extensions and discoveries | 11 | 76 | - | - | - | - | 24 | |||||||||||
| Purchases of proved reserves | 71 | 832 | - | - | - | - | 210 | |||||||||||
| Sales of proved reserves | (2 | ) | (3 | ) | - | - | - | - | (3 | ) | ||||||||
| Production | (96 | ) | (215 | ) | (26 | ) | (16 | ) | (47 | ) | (76 | ) | (220 | ) | ||||
| Balance at December 31, 2008 | 1,547 | 3,153 | 219 | 212 | 444 | 1,236 | 2,977 | |||||||||||
| Revisions of previous estimates | 58 | (688 | ) | (32 | ) | (40 | ) | 108 | 281 | 58 | ||||||||
| Improved recovery | 56 | 137 | 37 | 26 | 51 | 11 | 173 | |||||||||||
| Extensions and discoveries | 29 | 362 | 2 | 2 | - | - | 92 | |||||||||||
| Purchases of proved reserves | 15 | 67 | - | - | 11 | 736 | 160 | |||||||||||
| Sales of proved reserves | - | - | - | - | - | - | - | |||||||||||
| Production | (99 | ) | (232 | ) | (28 | ) | (17 | ) | (52 | ) | (89 | ) | (235 | ) | ||||
| Balance at December 31, 2009 | 1,606 | 2,799 | 198 | 183 | 562 | 2,175 | 3,225 | |||||||||||
| Proved Developed Reserves (a) | ||||||||||||||||||
| December 31, 2006 | 1,382 | 1,940 | 135 | 137 | 251 | 560 | 2,208 | |||||||||||
| December 31, 2007 | 1,406 | 1,997 | 115 | 140 | 265 | 932 | 2,298 | |||||||||||
| December 31, 2008 | 1,209 | 1,866 | 119 | 142 | 345 | 1,206 | 2,209 | |||||||||||
| December 31, 2009 | 1,286 | 1,931 | 125 | 125 | 446 | 1,759 | 2,493 | |||||||||||
| (a) Approximately 5 percent of the proved developed oil reserves and approximately 2 percent of the proved | ||||||||||||||||||
| developed gas reserves at December 31, 2009 are non-producing. | ||||||||||||||||||
| (b) Millions of barrels | ||||||||||||||||||
| (c) Billions of cubic feet | ||||||||||||||||||
| (d) Natural gas volumes have been converted to barrels based on energy content of six thousand cubic feet of | ||||||||||||||||||
| gas to one barrel of oil. | ||||||||||||||||||
| Attachment 2 | ||||||||||||||||
| PRELIMINARY | ||||||||||||||||
| COSTS INCURRED | ||||||||||||||||
| Occidental's 2009, 2008 and 2007 costs incurred in oil and gas property acquisition, exploration and development activities, whether capitalized or expensed, were as follows: | ||||||||||||||||
| United | Latin | Middle East / | ||||||||||||||
| ($ Millions) | States | America | North Africa | Total | ||||||||||||
| For the Year Ended | ||||||||||||||||
| December 31, 2009 | ||||||||||||||||
| Property Acquisition Costs | ||||||||||||||||
| Proved Properties | $ | 569 | $ | - | $ | 158 | $ | 727 | ||||||||
| Unproved Properties | 100 | - | 3 | 103 | ||||||||||||
| Exploration Costs | 131 | 26 | 50 | 207 | ||||||||||||
| Development Costs | 1,223 | 560 | 996 | 2,779 | ||||||||||||
| Costs Incurred | $ | 2,023 | $ | 586 | $ | 1,207 | $ | 3,816 | ||||||||
| For the Year Ended | ||||||||||||||||
| December 31, 2008 | ||||||||||||||||
| Property Acquisition Costs | ||||||||||||||||
| Proved Properties | $ | 1,819 | $ | 8 | $ | 4 | $ | 1,831 | ||||||||
| Unproved Properties | 1,362 | - | 348 | 1,710 | ||||||||||||
| Exploration Costs | 130 | 96 | 115 | 341 | ||||||||||||
| Development Costs | 1,740 | 864 | 1,496 | 4,100 | ||||||||||||
| Costs Incurred | $ | 5,051 | $ | 968 | $ | 1,963 | $ | 7,982 | ||||||||
| For the Year Ended | ||||||||||||||||
| December 31, 2007 | ||||||||||||||||
| Property Acquisition Costs | ||||||||||||||||
| Proved Properties | $ | 626 | $ | - | $ | 300 | $ | 926 | ||||||||
| Unproved Properties | 167 | (58 | ) | 10 | 119 | |||||||||||
| Exploration Costs | 39 | 79 | 213 | 331 | ||||||||||||
| Development Costs | 1,268 | 524 | 1,032 | 2,824 | ||||||||||||
| Costs Incurred | $ | 2,100 | $ | 545 | $ | 1,555 | $ | 4,200 | ||||||||
| Attachment 3 | ||||||||||||||||
| PRELIMINARY | ||||||||||||||||
| MULTI-YEAR DATA | ||||||||||||||||
| A | B | C | D = C/A | E = A/B | ||||||||||||
| Reserve | Costs | Finding & | Reserve | |||||||||||||
| Additions | Production | Incurred | Development | Replacement | ||||||||||||
| (Million BOE) | (Million BOE) | ($ Millions) | Costs Per BOE | Ratio | ||||||||||||
| 2005 | 380 | 179 | 4,185 | $ | 11.01 | 212% | ||||||||||
| 2006 | 506 | 208 | 8,785 | (a) | $ | 17.36 | 243% | |||||||||
| 2007 | 242 | 208 | 4,200 | $ | 17.36 | 116% | ||||||||||
| 2008 | 336 | 220 | 7,982 | $ | 23.76 | 153% | ||||||||||
| 2009 | 483 | 235 | 3,816 | $ | 7.90 | 206% | ||||||||||
| 3-Year Average | 353 | 221 | 5,333 | $ | 15.12 | 160% | ||||||||||
| 5-Year Average | 389 | 210 | 5,794 | $ | 14.88 | 185% | ||||||||||
| Reserves Replacement | Improved | Extensions | ||||||||||||||
| (Million BOE) | Revisions | Recovery | Discoveries | Acquisitions | Total | |||||||||||
| 2005 | (6 | ) | 129 | 118 | 139 | 380 | ||||||||||
| 2006 | 10 | 136 | 34 | 326 | 506 | |||||||||||
| 2007 | (95 | ) | 254 | 23 | 60 | 242 | ||||||||||
| 2008 | (145 | ) | 247 | 24 | 210 | 336 | ||||||||||
| 2009 | 58 | 173 | 92 | 160 | 483 | |||||||||||
| 3-Year Average | (61 | ) | 225 | 46 | 143 | 353 | ||||||||||
| 5-Year Average | (36 | ) | 188 | 58 | 179 | 389 | ||||||||||
| Exploration | Development | |||||||||||||||
| Acquisitions | Costs | Costs | Total | |||||||||||||
| Costs Incurred | ||||||||||||||||
| ($ Millions) | ||||||||||||||||
| 2005 | 2,166 | 232 | 1,787 | 4,185 | ||||||||||||
| 2006 | 6,030 | 313 | 2,442 | 8,785 | (a) | |||||||||||
| 2007 | 1,045 | 331 | 2,824 | 4,200 | ||||||||||||
| 2008 | 3,541 | 341 | 4,100 | 7,982 | ||||||||||||
| 2009 | 830 | 207 | 2,779 | 3,816 | ||||||||||||
| 3-Year Average | 1,806 | 293 | 3,234 | 5,333 | ||||||||||||
| 5-Year Average | 2,723 | 285 | 2,786 | 5,794 | ||||||||||||
| (a) Includes acquisition costs and related step-up for deferred income taxes of $1.34 billion for the purchase of Vintage | ||||||||||||||||
| Petroleum Inc. There was no goodwill recorded for this acquisition. | ||||||||||||||||