Occidental Petroleum (OXY) 10-K25 Feb 102009 FY Annual reportFinancial data

Company Profile

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
REVENUES AND OTHER INCOME
Net sales	$15,403	$24,217	$18,784
Interest, dividends and other income	118	236	355
Gains on disposition of assets, net	10	27	874
TOTAL REVENUES AND OTHER INCOME	15,531	24,480	20,013
COSTS AND OTHER DEDUCTIONS
Cost of sales (excludes depreciation, depletion and amortization of $3,067 in 2009, $2,664 in 2008 and $2,338 in 2007)	5,360	7,423	6,454
Selling, general and administrative and other operating expenses	1,350	1,257	1,320
Depreciation, depletion and amortization	3,117	2,710	2,379
Taxes other than on income	433	588	414
Environmental remediation	25	28	107
Exploration expense	267	327	364
Charges for impairments	170	647	58
Interest and debt expense, net	140	129	339
TOTAL COSTS AND OTHER DEDUCTIONS	10,862	13,109	11,435
INCOME BEFORE INCOME TAXES AND OTHER ITEMS	4,669	11,371	8,578
Provision for domestic and foreign income taxes	1,918	4,629	3,507
Income from equity investments	(227)	(213)	(82)
INCOME FROM CONTINUING OPERATIONS	2,978	6,955	5,153
Discontinued operations, net	(12)	18	322
NET INCOME	2,966	6,973	5,475
Less: Net income attributable to noncontrolling interest	(51)	(116)	(75)
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$2,915	$6,857	$5,400
BASIC EARNINGS PER COMMON SHARE (attributable to common stock)
Income from continuing operations (in dollars per share)	3.6	8.35	6.06
Discontinued operations, net (in dollars per share)	-0.01	0.02	0.39
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	3.59	8.37	6.45
DILUTED EARNINGS PER COMMON SHARE (attributable to common stock)
Income from continuing operations (in dollars per share)	3.59	8.32	6.03
Discontinued operations, net (in dollars per share)	-0.01	0.02	0.39
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	3.58	8.34	6.42
DIVIDENDS PER COMMON SHARE (in dollars per share)	1.31	1.21	0.94

1_Consolidated Statements of In

Consolidated Statements of Income (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statements of Income
Cost of sales: depreciation, depletion and amortization	$3,067	$2,664	$2,338

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$1,230	$1,777
Trade receivables, net of reserves of $30 in 2009 and $45 in 2008	4,142	3,117
Marketing and trading assets and other	1,203	1,012
Inventories	1,081	958
Prepaid expenses and other	430	308
Total current assets	8,086	7,172
INVESTMENTS IN UNCONSOLIDATED ENTITIES	1,732	1,263
PROPERTY, PLANT AND EQUIPMENT
Oil and gas segment	43,692	40,091
Chemical segment	5,298	5,090
Midstream, marketing and other segment	3,056	2,445
Corporate	1,085	1,102
GROSS PROPERTY, PLANT AND EQUIPMENT	53,131	48,728
Accumulated depreciation, depletion and amortization	(19,486)	(16,462)
TOTAL PROPERTY, PLANT AND EQUIPMENT	33,645	32,266
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	766	836
TOTAL ASSETS	44,229	41,537
CURRENT LIABILITIES
Current maturities of long-term debt	239	698
Accounts payable	3,379	3,306
Accrued liabilities	2,341	1,861
Domestic and foreign income taxes	28	158
Liabilities of discontinued operations	105	111
Total current liabilities	6,092	6,134
LONG-TERM DEBT, NET	2,557	2,049
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred and other domestic and foreign income taxes	3,125	2,660
Long-term liabilities of discontinued operations	136	152
Other	3,160	3,217
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES	6,421	6,029
STOCKHOLDERS' EQUITY
Common stock, $0.20 par value, authorized 1.1 billion shares, outstanding shares: 2009 - 883,642,957 and 2008 - 881,423,225	177	176
Treasury stock: 2009 - 71,721,221 shares and 2008 - 71,176,487 shares	(4,161)	(4,121)
Additional paid-in capital	7,127	7,113
Retained earnings	26,534	24,684
Accumulated other comprehensive loss	(596)	(552)
Noncontrolling interest	78	25
TOTAL STOCKHOLDERS' EQUITY	29,159	27,325
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$44,229	$41,537

Consolidated Balance Sheets (pa

Consolidated Balance Sheets (parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheets
Trade receivables, reserves (in dollars)	$30	$45
Common stock, par value (in dollars per share)	0.2	0.2
Common stock, authorized shares	1,100,000,000	1,100,000,000
Common stock, outstanding shares	883,642,957	881,423,225
Treasury stock, shares	71,721,221	71,176,487

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (USD $)
In Millions	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings		Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Balance at Dec. 31, 2006	$174	($1,481)	$6,905	$13,987		($333)	$352
Increase (Decrease) in Stockholders' Equity
Net income	0	0	0	5,400	[1]	0	75	5,475
Uncertain tax positions adjustment	0	0	0	219		0	0
Other comprehensive income (loss), net of tax	0	0	0	0		(299)	0
Dividends on common stock	0	0	0	(787)		0	(59)
Issuance of common stock and other, net	1	0	166	0		0	0
Purchases of noncontrolling interest	0	0	0	0		0	(333)
Purchases of treasury stock	0	(1,129)	0	0		0	0
Balance at Dec. 31, 2007	175	(2,610)	7,071	18,819		(632)	35
Increase (Decrease) in Stockholders' Equity
Net income	0	0	0	6,857	[1]	0	116	6,973
Other comprehensive income (loss), net of tax	0	0	0	0		80	0
Dividends on common stock	0	0	0	(992)		0	(126)
Issuance of common stock and other, net	1	0	42	0		0	0
Purchases of treasury stock	0	(1,511)	0	0		0	0
Balance at Dec. 31, 2008	176	(4,121)	7,113	24,684		(552)	25	27,325
Increase (Decrease) in Stockholders' Equity
Net income	0	0	0	2,915	[1]	0	51	2,966
Other comprehensive income (loss), net of tax	0	0	0	0		(44)	0
Dividends on common stock	0	0	0	(1,065)		0	(16)
Issuance of common stock and other, net	1	0	14	0		0	18
Purchases of treasury stock	0	(40)	0	0		0	0
Balance at Dec. 31, 2009	$177	($4,161)	$7,127	$26,534		($596)	$78	$29,159
[1]Represent amounts attributable to common stock after deducting noncontrolling interest amounts.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)

In Millions

12 Months Ended
Dec. 31, 2009

12 Months Ended
Dec. 31, 2008

12 Months Ended
Dec. 31, 2007

Consolidated Statements of Comprehensive Income

Net income attributable to common stock

$2,915

$6,857

$5,400

Other comprehensive income (loss) items:

Foreign currency translation adjustments

[1]

(24)

[1]

Unrealized gains (losses) on derivatives

(93)

[3]

207

[3]

(243)

[3]

Pension and postretirement adjustments

[2]

(184)

[2]

(13)

[2]

Reclassification of realized losses (gains) on derivatives and securities

[5]

(156)

[5]

Unrealized gains on securities

[4]

Other comprehensive income (loss), net of tax

(44)

[6]

(299)

[6]

Comprehensive income attributable to common stock

$2,871

$6,937

$5,101

[1]Net of tax of $0 in all three years.

[2]Net of tax of $0, $110 and $8 in 2009, 2008 and 2007, respectively.

[3]Net of tax of $53, ($118) and $139 in 2009, 2008 and 2007, respectively.

[4]Net of tax of ($1), ($7) and ($56) in 2009, 2008 and 2007, respectively.

[5]Net of tax of ($7), ($39), and $89 in 2009, 2008 and 2007, respectively. 2007 amount represents the recognition of the gain on the sale of the remaining Lyondell Chemical Company (Lyondell) shares.

[6]There were no other comprehensive income (loss) items related to noncontrolling interests in 2009, 2008 and 2007.

2_Consolidated Statements of Co

Consolidated Statements of Comprehensive Income (parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statements of Comprehensive Income
Foreign currency translation adjustments, tax	$0	$0	$0
Unrealized gains (losses) on derivatives, tax	53	(118)	139
Pension and postretirement adjustments, tax	0	110	8
Reclassification of realized losses (gains) on derivatives and securities, tax	(7)	(39)	89
Unrealized gains on securities, tax	($1)	($7)	($56)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOW FROM OPERATING ACTIVITIES
Net income	$2,966	$6,973	$5,475
Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations, net	12	(18)	(322)
Depreciation, depletion and amortization of assets	3,117	2,710	2,379
Deferred income tax provision	507	268	35
Other noncash charges to income	638	1,071	870
Gains on disposition of assets, net	(10)	(27)	(874)
Income from equity investments	(227)	(213)	(82)
Dry hole and impairment expense	212	244	189
Changes in operating assets and liabilities:
Decrease (increase) in receivables	(602)	1,518	(2,219)
Increase in inventories	(107)	(64)	(71)
Decrease (increase) in prepaid expenses and other assets	(77)	6	(96)
(Decrease) increase in accounts payable and accrued liabilities	(403)	(1,342)	1,807
Increase (decrease) in current domestic and foreign income taxes	12	(222)	(73)
Other operating, net	(182)	(275)	(358)
Operating cash flow from continuing operations	5,856	10,629	6,660
Operating cash flow from discontinued operations, net of taxes	(43)	23	138
Net cash provided by operating activities	5,813	10,652	6,798
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures	(3,581)	(4,664)	(3,360)
Sales of assets, net	51	27	509
Purchases of assets, net	(1,782)	(4,701)	(1,522)
Purchases of short-term investments	0	0	(10)
Sales of short-term investments	0	0	250
Sales of equity investments and available-for-sale investments	0	51	1,157
Equity investments and other, net	(15)	(42)	(88)
Investing cash flow from continuing operations	(5,327)	(9,329)	(3,064)
Investing cash flow from discontinued operations	0	0	(11)
Net cash used by investing activities	(5,327)	(9,329)	(3,075)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from long-term debt	740	1,043	127
Payments of long-term debt	(699)	(96)	(1,291)
Proceeds from issuance of common stock	18	32	17
Purchases of treasury stock	(40)	(1,511)	(1,129)
Redemption of preferred stock	0	0	(75)
Cash dividends paid	(1,063)	(940)	(765)
Excess share-based tax benefits and other	27	90	71
Distributions to noncontrolling interest	(16)	(128)	(53)
Net cash used by financing activities	(1,033)	(1,510)	(3,098)
(Decrease) increase in cash and cash equivalents	(547)	(187)	625
Cash and cash equivalents - beginning of year	1,777	1,964	1,339
Cash and cash equivalents - end of year	$1,230	$1,777	$1,964

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS In this report, Occidental or the Company refers to Occidental Petroleum Corporation, a Delaware corporation, (OPC), and/or one or more entities in which it owns a majority voting interest (subsidiaries). Occidental is a multinational organization whose subsidiaries and affiliates operate in the oil and gas, chemical and midstream, marketing and other segments. The oil and gas segment explores for, develops, produces and markets crude oil, including natural gas liquids (NGLs) and condensate, as well as natural gas. The chemical segment (OxyChem) manufactures and markets basic chemicals, vinyls and other chemicals. The midstream, marketing and other segment (midstream and marketing) gathers, treats, processes, transports, stores, purchases and markets crude oil (including NGLs and condensate), natural gas, carbon dioxide (CO2) and power. It also trades around its assets, including pipelines and storage capacity, and trades commodities and securities. Unless otherwise indicated hereafter, discussion of oil or oil and liquids refers to crude oil, NGLs and condensate. In addition, discussions of oil and gas production or volumes, in general, refer to sales volumes unless context requires or it is indicated otherwise. PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (GAAP) and include the accounts of OPC, its subsidiaries and its undivided interests in oil and gas exploration and production ventures. Occidentals proportionate share of oil and gas exploration and production ventures, in which it has a direct working interest, is accounted for by reporting its proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets, income statements and cash flow statements. Certain financial statements, notes and supplementary data for prior years have been reclassified to conform to the 2009 presentation. INVESTMENTS IN UNCONSOLIDATED ENTITIES Investments in unconsolidated entities include equity-method investments. Amounts representing Occidentals percentage interest in the underlying net assets of affiliates (excluding undivided interests in oil and gas exploration and production ventures) in which it does not have a majority voting interest but as to which it exercises significant influence, are accounted for under the equity method. Occidental reviews equity-method investments for impairment whenever events or changes in circumstances indicate that an other-than-temporary decline in value may have occurred. The amount of impairment, if any, is based on quoted market prices, where available, or other valuation techniques, including discounted cash flows. REVENUE RECOGNITION Revenue is recognized from oil and gas production when title has passed to the customer, which occurs when the product is shipped. In international locations where oil is shipped by tanker, title passes when the tanker is loaded or product is received by the customer, depending on the shipping terms. This process occa

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
ACQUISITIONS AND DISPOSITIONS	NOTE 2 ACQUISITIONS AND DISPOSITIONS SUBSEQUENT EVENT In January2010, Occidental and its partners signed a technical service contract with the government of Iraq to develop the Zubair Field in Iraq. Occidentals management has evaluated events from January1, 2010 through February25, 2010 and has made the appropriate disclosures. 2009 On December31, 2009, Occidental completed the acquisition of interests in Phibro LLC (Phibro) from Citigroup Inc. for approximately $370 million. Phibro, primarily an investor in commodities and securities, is included as a part of Occidentals midstream and marketing segment. The assets acquired and liabilities assumed were recorded at their estimated fair values at the acquisition date. The majority of Phibros assets and liabilities are derivatives and trading securities, which are carried at fair value and, consequently, the allocated purchase prices are included in Note 7, Derivative Activities and Note 15, Fair Value Measurements. No goodwill was recorded on this transaction. In December2009, Occidental purchased additional interests in the General Partner of the Plains All-American Pipeline, L.P. for approximately $330 million. Occidental now owns approximately 22 percent of this entity. Occidental and its partners signed a Development and Production Sharing Agreement (DPSA) in April2009 with the National Oil and Gas Authority of Bahrain for further development of the Bahrain Field, which became effective in December2009. Under this agreement, a joint operating company formed by Occidental and its partners will serve as operator for the project. In 2009, Occidental acquired various additional oil and gas properties in California and the Permian Basin for approximately $610 million. 2008 In August2008, Occidental purchased noncontrolling interests in the General Partner of Plains All-American Pipeline, L.P. for approximately $330 million in cash. In July2008, Occidental purchased a 15-percent interest in the Joslyn Oil Sands Project (Joslyn) in northern Alberta, Canada, for approximately $500 million in cash. In June2008, Occidental signed an agreement for a third party to construct a west Texas gas processing plant that will provide carbon dioxide (CO2) for Occidentals enhanced oil recovery projects in the Permian Basin. Occidental will own and operate the new facility. In June2008, Occidental and its partner signed 30-year agreements (including a potential 5-year extension) with the Libyan National Oil Company (NOC) to upgrade its existing petroleum contracts in Libya. The new agreements increased Occidentals after-tax economic returns while allowing NOC and Occidental to design and implement major field redevelopment and exploration programs in the Sirte Basin. Occidental will contribute 37.5 percent of the development capital. Under these contracts, Occidental will pay $750 million as its share of a signature bonus. Occidental made its first payment in the amount of $450 million in June2008 and its second payment of $150 million in June2009. Occidentals remaining payment of $150 million is due in June2010. In February2008, Occidental purchased from Plains Explor

ACCOUNTING AND DISCLOSURE CHANG

ACCOUNTING AND DISCLOSURE CHANGES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
ACCOUNTING AND DISCLOSURE CHANGES	NOTE 3 ACCOUNTING AND DISCLOSURE CHANGES FUTURE ACCOUNTING AND DISCLOSURE CHANGES Effective for the first quarter of 2010, Occidental will modify its method of assessing the consolidation of variable interest entities as a result of adopting new accounting requirements issued by the Financial Accounting Standards Board (FASB) in June2009. Occidental is currently assessing the effect of this new guidance on its financial statements but does not expect it to be material. RECENTLY ADOPTED ACCOUNTING AND DISCLOSURE CHANGES Effective for the year ended December31, 2009, the Securities and Exchange Commission (SEC) and the FASB modified certain accounting and disclosure requirements for oil and gas properties, which Occidental adopted. The new guidance includes changes to pricing methodology and the use of allowable technologies in the recognition and measurement of reserves, as well as oil and gas disclosure requirements. As of December31, 2009, Occidental conformed its disclosures to the new guidelines, which did not have a material impact on Occidentals financial statements. As of December31, 2009, Occidental enhanced its disclosures related to the assets held in defined benefit plans and other post-retirement benefits in accordance with disclosure requirements issued by the FASB in December2008 and in April2009. In the quarter ended June30, 2009, Occidental adopted new disclosure requirements for its evaluation of subsequent events as a result of new accounting guidance issued by the FASB in May2009. In the quarter ended June30, 2009, Occidental adopted new disclosure requirements for the fair value of financial instruments in interim periods when it is practicable to estimate such values as a result of new accounting guidance issued by the FASB in April2009. Beginning January1, 2009, Occidental modified its calculation of basic earnings per share (EPS) in accordance with new accounting guidance issued by the FASB in June2008. Under this new accounting guidance, instruments containing rights to nonforfeitable dividends granted in share-based payment transactions are considered participating securities prior to vesting and, therefore, have been included in the earnings allocations in computing EPS under the two-class method. While prior period EPS data has been adjusted retrospectively, this change had no material impact on Occidentals financial statements. Beginning January1, 2009, Occidental adopted new disclosure requirements for its derivative and hedging activities as a result of new accounting guidance issued by the FASB in March2008. Beginning January1, 2009, Occidental prospectively adopted the deferred portion of new accounting guidance related to the application of the measurement and disclosure framework of non-financial assets and liabilities that are recorded at fair value on a non-recurring basis. This new guidance was issued by the FASB in February2008. Beginning January1, 2009, Occidental adopted new accounting guidance related to the accounting and disclosure requirements for business combinations. The new guidance was issued by the FASB in December2007 and April2009 and had no material impact

INVENTORIES

INVENTORIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
INVENTORIES	NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $175 million and $166 million at December31, 2009 and 2008, respectively. Inventories consisted of the following: Balance at December31, (in millions) 2009 2008 Raw materials $ 63 $ 123 Materials and supplies 515 412 Finished goods 584 494 1,162 1,029 LIFO reserve (81 ) (71 ) Total $ 1,081 $ 958

LONG-TERM DEBT

LONG-TERM DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
LONG-TERM DEBT	NOTE 5 LONG-TERM DEBT Long-term debt consisted of the following: Balance at December31, (in millions) 2009 2008 Occidental Petroleum Corporation 7.0% senior notes due 2013 $ 1,000 $ 1,000 4.125% senior notes due 2016 750 6.75% senior notes due 2012 368 368 4.25% medium-term senior notes due 2010 227 227 8.45% senior notes due 2029 116 116 9.25% senior debentures due 2019 116 116 10.125% senior debentures due 2009 91 7.2% senior debentures due 2028 82 82 8.75% medium-term notes due 2023 22 22 11.125% senior notes due 2010 12 12 2,693 2,034 Subsidiary Debt Dolphin Energy Limited (Dolphin Energy) loans due 2009 (3.915% as of December31, 2008) 600 0.19% to 0.35% unsecured notes due 2011 through 2018 115 115 2,808 2,749 Less: Unamortized discount, net (12 ) (9 ) Current maturities (239 ) (691 ) Total $ 2,557 $ 2,049 In July2009, Occidental repaid its $600 million debt associated with Dolphin Energys debt. Also, in July2009, Dolphin Energy refinanced its debt on a limited-recourse basis. Occidental provided guarantees limited to certain political and other events. The fair value of these guarantees was immaterial. At December31, 2009, the notional amount was approximately $300 million, which represented a substantial majority of Occidentals total guarantees. In May2009, Occidental issued $750 million of 4.125-percent senior unsecured notes due 2016, receiving $740 million of net proceeds. Interest on the notes will be payable semi-annually in arrears on June1 and December1 of each year. In October2008, Occidental issued $1 billion of 7-percent senior unsecured notes due 2013, receiving $985 million of net proceeds. Interest on the notes will be payable semi-annually in arrears on May1 and November1 of each year. Occidental has a $1.5 billion bank credit facility (Credit Facility) through September2012, which adjusts to $1.4 billion in September2011. The Credit Facility provides for the termination of the loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur or if Occidental files for bankruptcy. Up to $350 million of the Credit Facility is available in the form of letters of credit. Occidental did not draw down any amounts under the Credit Facility during 2009. Available but unused lines of committed bank credit totaled approximately $1.5 billion at December31, 2009. None of Occidentals committed bank credits contain material adverse change clauses or debt ratings triggers that could restrict Occidentals ability to borrow under these lines. Occidentals credit facilities and debt agreements do not contain ratings triggers that could terminate bank commitments or accelerate debt in the event of a ratings downgrade. Borrowings under the Credit Facility bear interest at various benchmark rates, including LIBOR, plus a margin based on Occidentals senior debt ratings. Additionally, Occidental paid an annual facility fee of 0.05 percent in 2009 on the total commitment

LEASE COMMITMENTS

LEASE COMMITMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
LEASE COMMITMENTS	NOTE 6 LEASE COMMITMENTS The present value of minimum capital lease payments, net of the current portion, totaled $25 million at both December31, 2009 and 2008. These amounts are included in other liabilities. Operating and capital lease agreements, which include leases for manufacturing facilities, office space, railcars and tanks, frequently include renewal or purchase options and require Occidental to pay for utilities, taxes, insurance and maintenance expense. At December31, 2009, future net minimum lease payments for capital and noncancelable operating leases (excluding oil and gas and other mineral leases, utilities, taxes, insurance and maintenance expense) were the following: In millions Capital Operating (a) 2010 $ $ 153 2011 118 2012 87 2013 70 2014 59 Thereafter 26 630 Total minimum lease payments 26 $ 1,117 Less: Imputed interest 1 Present value of minimum capital lease payments $ 25 (a) At December31, 2009, these operating lease payments are net of sublease rental amounts of $15 million, which are to be received as follows (in millions): 2010$4, 2011$4, 2012$4, 2013$2 and 2014$1. Rental expense for operating leases, net of sublease rental income, was $172 million in 2009, $178 million in 2008 and $196 million in 2007. Rental expense was net of sublease income of $4 million, $7 million and $7 million in 2009, 2008 and 2007, respectively.

DERIVATIVE ACTIVITIES

DERIVATIVE ACTIVITIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
DERIVATIVE ACTIVITIES	NOTE 7 DERIVATIVE ACTIVITIES Objective Strategy Occidental has used derivatives to reduce its long-term exposure to price volatility on a small portion of its oil and gas production. Through its low-risk marketing and trading activities and within its established policy controls and procedures, Occidental has also used derivative instruments, including a combination of short-term futures, forwards, options and swaps to improve realized prices for its oil and gas. Additionally, Occidental, through its Phibro subsidiary, will also engage in trading activities using derivatives for the purpose of generating profits mainly from market price changes of commodities. Refer to Note 1 for Occidentals accounting policy on derivatives. Cash-Flow Hedges Occidental holds a series of collar agreements that qualify as cash-flow hedges for the sale of approximately 2 percent of its crude oil production. These agreements continue to the end of 2011. The following table presents the daily quantities and weighted-average strike prices of Occidentals collar positions as of December31, 2009: Crude Oil Collars Daily Volume (barrels) Average Floor Average Cap 2010 12,000 $ 33.00 $ 46.35 2011 12,000 $ 32.92 $ 46.27 In 2009, Occidental entered into financialswap agreements related to the sale of aportion of itsnatural gas production from the Rockies that qualify as cash-flowhedges. The following table presents the daily quantities andweighted-average hedged prices that will be received by Occidental as of December31, 2009: Natural Gas Swaps Daily Volume Average Strike Price January2010 - December2010 40 million cubic feet $ 5.03 December2010 - March2012 50 million cubic feet $ 6.07 Occidentals marketing and trading operations store natural gas purchased from third parties at Occidentals leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes. These agreements continue through 2010. As of December31, 2009, Occidental had approximately 28 billion cubic feet of natural gas held in storage. Occidental has designated the forecasted sale of approximately 24 billion cubic feet of natural gas from storage as cash-flow hedges. The following table presents the pre-tax gains (losses) recognized in and reclassified from Accumulated Other Comprehensive Income (AOCI) and recognized in income (net sales), including any hedge ineffectiveness, for derivative instruments classified as cash-flow hedges for the year ended December31, 2009: Cash-Flow Hedges (in millions) Gains (Losses) Recognized in AOCI Effective Portion Amount of (Gains) Losses Reclassified from AOCI into Income Effective Portion Gains Recognized in Income Ineffective Portion Commodity contracts Occidentals crude oil production $ (162 ) $ 74 $ 10 Occidentals natural gas production (2 ) Commodity contracts Natural gas storage 19 (50 ) Total $ (145 ) $ 24 $ 10 The following table summarizes net after-tax derivative activity recorded

ENVIRONMENTAL LIABILITIES AND E

ENVIRONMENTAL LIABILITIES AND EXPENDITURES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
ENVIRONMENTAL LIABILITIES AND EXPENDITURES	NOTE 8 ENVIRONMENTAL LIABILITIES AND EXPENDITURES Occidentals operations are subject to stringent federal, state, local and foreign laws and regulations relating to improving or maintaining environmental quality. Occidentals environmental compliance costs have generally increased over time and could continue to rise in the future. Occidental factors environmental expenditures for its operations into its business planning process as an integral part of producing quality products responsive to market demand. ENVIRONMENTAL REMEDIATION The laws that require or address environmental remediation, including CERCLA and similar federal, state, local and foreign laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. As of December31, 2009, Occidental participated in or monitored remedial activities or proceedings at 168 sites. The following table presents Occidentals environmental remediation reserves as of December31, 2009, 2008 and 2007, the current portion of which is included in accrued liabilities ($84 million in 2009, $68 million in 2008 and $69 million in 2007) and the remainder in deferred credits and other liabilities other ($319 million in 2009, $371 million in 2008 and $388 million in 2007). The reserves are grouped as environmental remediation sites listed or proposed for listing by the U.S. Environmental Protection Agency on the CERCLA NPL (NPL sites) and three categories of non-NPL sites third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. 2009 2008 2007 $amounts in millions Number of Sites Reserve Balance Number of Sites Reserve Balance Number of Sites Reserve Balance NPL sites 39 $ 57 40 $ 60 39 $ 81 Third-party sites 81 104 76 117 79 124 Occidental-operated sites 19 126 19 127 18 121 Closed or non-operated Occidental sites 29 116 31 135 27 131 Total 168 $ 403 166 $ 439 163 $ 457 As of December31, 2009, Occidentals environmental reserves exceeded $10 million each at 14 of the 168 sites described above, and 118 of the sites had reserves from $0 to $1 million each. As of December31, 2009, two landfills in western New York owned by Occidental accounted for 70 percent of its reserves associated with NPL sites. Maxus Ene

LAWSUITS, CLAIMS, COMMITMENTS,

LAWSUITS, CLAIMS, COMMITMENTS, CONTINGENCIES AND RELATED MATTERS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
LAWSUITS, CLAIMS, COMMITMENTS, CONTINGENCIES AND RELATED MATTERS	NOTE 9 LAWSUITS, CLAIMS, COMMITMENTS, CONTINGENCIES AND RELATED MATTERS OPC or certain of its subsidiaries are named, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. OPC or certain of its subsidiaries also have been named in proceedings under CERCLA and similar federal, state, local and foreign environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief; however, Occidental is usually one of many companies in these proceedings and has to date been successful in sharing response costs with other financially sound companies. With respect to all such lawsuits, claims and proceedings, including environmental proceedings, Occidental accrues reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Lawsuits filed in Nicaragua against Occidental Chemical Corporation (OxyChem) and other companies that once manufactured or used the pesticide dibromochloropropane (DBCP) claim damages of several billion dollars for alleged personal injuries. In the opinion of management, the claims against OxyChem are without merit because, among other things, the DBCP it manufactured was never sold or used in Nicaragua. Nicaraguan courts have entered judgments of approximately $900 million against four defendants, including OxyChem, which, if affirmed and ultimately enforced, would be shared equally among the defendants. When the plaintiffs attempted to enforce one judgment in Miami, the federal district court granted summary judgment in favor of OxyChem and refused to enforce the judgment, finding the Nicaraguan court lacked personal jurisdiction because OxyChem DBCP was not used in Nicaragua, OxyChem did not have sufficient contacts with Nicaragua, and other grounds for dismissal. OxyChem has no assets in Nicaragua and, in the opinion of management, no such Nicaraguan judgment would be enforceable in the United States. During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and foreign tax jurisdictions. While the audits for taxable years through 2007 have concluded for U.S. federal income tax purposes, the 2008 and 2009 taxable years are currently under audit by the U.S. Internal Revenue Service pursuant to its compliance assurance program. Foreign government tax authorities are in various stages of auditing Occidental, and income taxes for taxable years from 2000 through 2009 remain subject to examination in certain jurisdictions. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental has entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling rigs and services, electrical power, steam and certain chemical raw materials.

DOMESTIC AND FOREIGN INCOME TAX

DOMESTIC AND FOREIGN INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
DOMESTIC AND FOREIGN INCOME TAXES	NOTE 10 DOMESTIC AND FOREIGN INCOME TAXES The domestic and foreign components of income from continuing operations before domestic and foreign income taxes and net of noncontrolling interest amounts were as follows: For the years ended December31, (in millions) Domestic Foreign Total 2009 $ 2,091 $ 2,754 $ 4,845 2008 $ 5,923 $ 5,545 $ 11,468 2007 $ 4,604 $ 3,981 $ 8,585 The provisions(credits) for domestic and foreign income taxes on continuing operations consisted of the following: For the years ended December31, (in millions) U.S. Federal State and Local Foreign Total 2009 Current $ 16 $ 27 $ 1,368 $ 1,411 Deferred 606 37 (136 ) 507 $ 622 $ 64 $ 1,232 $ 1,918 2008 Current $ 1,558 $ 166 $ 2,637 $ 4,361 Deferred 435 29 (196 ) 268 $ 1,993 $ 195 $ 2,441 $ 4,629 2007 Current $ 1,371 $ 125 $ 1,976 $ 3,472 Deferred 48 14 (27 ) 35 $ 1,419 $ 139 $ 1,949 $ 3,507 The following is a reconciliation, stated as a percentage of pre-tax income, of the United States statutory federal income tax rate to Occidentals effective tax rate on income from continuing operations: For the years ended December31, 2009 2008 2007 United States federal statutory tax rate 35 % 35 % 35 % Operations outside the United States 5 6 6 State taxes, net of federal benefit 1 1 1 Other (1 ) (2 ) (1 ) Tax rate provided by Occidental 40 % 40 % 41 % The tax effects of temporary differences resulting in deferred income taxes at December31, 2009 and 2008 were as follows: 2009 2008 Tax effects of temporary differences (in millions) Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Property, plant and equipment differences $ 15 $ 4,230 $ 16 $ 3,646 Environmental reserves 144 177 Postretirement benefit accruals 331 296 Deferred compensation and benefits 262 240 Asset retirement obligations 209 159 Derivatives 132 64 Foreign tax credit carryforward 426 423 State income taxes 77 85 All other 433 153 409 205 Subtotal 2,029 4,383 1,869 3,851 Valuation allowance (491 ) (478 ) Total deferred taxes $ 1,538 $ 4,383 $ 1,391 $ 3,851 Included in total deferred tax assets was a current portion aggregating $280 million and $200 million as of December31, 2009 and 2008, respectively, that was reported in prepaid expenses and other. Total deferred tax assets were $1.5 billion and $1.4 billion as of December31, 2009 and 2008, respectively, the noncurrent portion of which is netted against deferred tax liabilities. Occidental has, as of December31, 2009, foreign tax credit ca

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	1/1/2009 - 12/31/2009 USD / shares
Notes to Consolidated Financial Statements
STOCKHOLDERS' EQUITY	NOTE 11 STOCKHOLDERS EQUITY The following is an analysis of common stock issuances: (shares in thousands) Common Stock Balance, December31, 2006 870,679 Issued 2,643 Options exercised and other, net 3,802 Balance, December31, 2007 877,124 Issued 1,532 Options exercised and other, net 2,767 Balance, December31, 2008 881,423 Issued 1,697 Options exercised and other, net 523 Balance, December31, 2009 883,643 TREASURY STOCK Occidental has had a 95-million share authorization in place since 2008 for its share repurchase program; however, the program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time. In 2008 and 2007, Occidental purchased 19.8 million and 20.6 million shares, respectively, under the program at an average cost of $76.33 and $54.75 per share, respectively. Additionally, Occidental purchased shares from the trustee of its defined contribution savings plan during the years ended December31, 2009, 2008 and 2007. NONREDEEMABLE PREFERRED STOCK Occidental has authorized 50,000,000 shares of preferred stock with a par value of $1.00 per share. At December31, 2009, 2008 and 2007, Occidental had no outstanding shares of preferred stock. EARNINGS PER SHARE As discussed in Note 3, Occidental adopted new accounting guidance for EPS on January1, 2009. Under this new accounting guidance, Occidentals instruments containing rights to nonforfeitable dividends granted in share-based payment transactions are considered participating securities prior to vesting, and, therefore, have been included in the earnings allocations in computing basic and diluted EPS under the two-class method. Basic EPS was computed by dividing net income attributable to common stock by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units. The computation of diluted EPS further reflected the dilutive effect of stock options and unvested stock awards. The following table presents the calculation of basic and diluted EPS for the years ended December31: Years Ended December 31 In millions, except per-share amounts 2009 2008 2007 Basic EPS Income from continuing operations $ 2,978 $ 6,955 $ 5,153 Less: Income from continuing operations attributable to noncontrolling interest (51 ) (116 ) (75 ) Income from continuing operations attributable to common stock 2,927 6,839 5,078 Discontinued operations (12 ) 18 322 Net income attributable to common stock 2,915 6,857 5,400 Less: Net income allocated to participating securities (4 ) (13 ) (18 ) Net income attributable to common stock, net of participating securities $ 2,911 $ 6,844 $ 5,382 Weighted average number of basic shares 811.3 817.6 834.9 Basic EPS $ 3.59 $ 8.37 $ 6.45 Diluted EPS Net income attributable to common stock, net of participating securities $ 2,9

STOCK-BASED INCENTIVE PLANS

STOCK-BASED INCENTIVE PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
STOCK-BASED INCENTIVE PLANS	NOTE 12 STOCK-BASED INCENTIVE PLANS Occidental has established several Plans that allow it to issue stock-based awards in the form of RSUs, Options, SARs, PSAs and TSRIs. At December31, 2009, an aggregate of 66 million shares of Occidental common stock were reserved for issuance under outstanding awards and approximately 54 million shares were available for future awards. During 2009, non-employee directors were granted awards for 63,134 shares of restricted stock that fully vested on the grant date. Compensation expense for these awards was measured using the quoted market price of Occidentals common stock on the grant date and was fully recognized at that time. The table below summarizes certain stock-based incentive amounts for the past three years: For the years ended December31, (in millions) 2009 2008 2007 Compensation expense $ 151 $ 139 $ 290 Income tax benefit recognized in the income statement $ 55 $ 51 $ 105 Intrinsic value of options and stock-settled SAR exercises $ 58 $ 291 $ 110 Cash paid (a) $ 50 $ 177 $ 95 Fair value of RSUs and PSAs vested during the year (b) $ 142 $ 112 $ 128 (a) Includes cash paid under the cash-settled SARs and the cash-settled portion of the PSAs and RSUs. (b) As measured on the vesting date for the stock-settled portion of the RSUs and PSAs. As of December31, 2009, there was $174 million of pre-tax unrecognized compensation expense, based on year-end valuation, related to all unvested stock-based incentive award grants. This expense is expected to be recognized over a weighted-average period of 2.4 years. RSUS Certain employees are awarded the right to receive cash-settled RSUs, which are equivalent in value to actual shares of Occidental common stock but are paid in cash at the time of vesting. These awards vest either in total over two years or ratably over three years after the grant date and can be forfeited or accelerated under certain conditions. For those awards which vest in total over two years, dividend equivalents are accumulated during the vesting period and are paid when they vest. For those awards which vest ratably, dividend equivalents are paid during the vesting period. The weighted-average, grant-date fair values of these awards granted in 2009, 2008 and 2007 were $66.43, $76.23 and $61.90 per share, respectively. Certain employees are awarded the right to receive stock-settled RSUs that vest ratably over three or five years from the grant date and can be forfeited or accelerated under certain conditions. Dividend equivalents are paid during the vesting period. There were no such awards granted in 2009 and the 2008 and 2007 grants were immaterial. A summary of changes in Occidentals unvested cash- and stock-settled RSUs during the year ended December31, 2009 is presented below: Cash-Settled Stock-Settled Weighted-Average Weighted-Average RSUs Grant-Date RSUs Grant-Date (000s) Fair Value (000s) Fair Value Unvested at January1 1,335 $ 71.97 433 $ 46.27 Gra

RETIREMENT PLANS AND POSTRETIRE

RETIREMENT PLANS AND POSTRETIREMENT BENEFITS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
RETIREMENT PLANS AND POSTRETIREMENT BENEFITS	NOTE 13 RETIREMENT PLANS AND POSTRETIREMENT BENEFITS Occidental has various benefit plans for its salaried, domestic union and nonunion hourly, and certain foreign national employees. DEFINED CONTRIBUTION PLANS All domestic employees and certain foreign national employees are eligible to participate in one or more of the defined contribution retirement or savings plans that provide for periodic contributions by Occidental based on plan-specific criteria, such as base pay, age level and employee contributions. Certain salaried employees participate in a supplemental retirement plan that provides restoration of benefits lost due to governmental limitations on qualified retirement benefits. The accrued liabilities for the supplemental retirement plan were $95 million and $97 million as of December31, 2009 and 2008, respectively, and Occidental expensed $97 million in 2009, $93 million in 2008 and $86 million in 2007 under the provisions of these defined contribution and supplemental retirement plans. DEFINED BENEFIT PLANS Participation in defined benefit plans is limited and approximately 1,100 domestic and 2,100 foreign national employees, mainly union, nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently accruing benefits under these plans. Pension costs for Occidentals defined benefit pension plans, determined by independent actuarial valuations, are generally funded by payments to trust funds, which are administered by independent trustees. OTHER POSTRETIREMENT BENEFIT PLANS Occidental provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. The benefits are generally funded by Occidental as the benefits are paid during the year. The total benefit costs, including the postretirement costs, were approximately $161 million in 2009, $144 million in 2008 and $131 million in 2007. OBLIGATIONS AND FUNDED STATUS Occidental recognizes the overfunded or underfunded amounts of its defined benefit pension and postretirement plans in its financial statements and uses a measurement date of December31. The following table shows the funding status of Occidentals plans: Pension Benefits Postretirement Benefits Unfunded Plans Funded Plans For the years ended December31, (in millions) 2009 2008 2009 2008 2009 2008 Changes in benefit obligation: Benefit obligation beginning of year $ 542 $ 527 $ 768 $ 662 $ 39 $ 33 Service cost benefits earned during the period 15 14 16 13 1 Interest cost on projected benefit obligation 28 30 39 36 2 2 Actuarial loss 28 23 74 112 2 5 Foreign currency exchange rate loss (gain) 15 (16 ) Benefits paid (46 ) (45 ) (55 ) (55 ) (1 ) (1 ) Business acquisitions 6 Plan amendments and other 1 9 Benefit obligation end of year $ 583 $ 542 $ 848 $ 768 $ 43

INVESTMENTS AND RELATED-PARTY T

INVESTMENTS AND RELATED-PARTY TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
INVESTMENTS AND RELATED-PARTY TRANSACTIONS	NOTE 14 INVESTMENTS AND RELATED-PARTY TRANSACTIONS At December31, 2009 and 2008, investments in unconsolidated entities, including advances, comprised $1.7 billion and $1.3 billion of equity-method investments, respectively. EQUITY INVESTMENTS At December31, 2009, Occidentals equity investments consisted mainly of a 24.5-percent interest in the stock of Dolphin Energy, an approximately 22-percent interest in the General Partner of Plains All-American Pipeline L.P. and various other partnerships and joint ventures. Equity investments paid dividends of $139 million, $111 million and $33 million to Occidental in 2009, 2008 and 2007, respectively. At December31, 2009, cumulative undistributed earnings of equity-method investees since their respective acquisitions were $306 million. At December31, 2009, Occidentals investments in equity investees exceeded the underlying equity in net assets by $938 million, of which $174 million represents goodwill and $764 million relates to assets, including intangibles, which are being amortized over their estimated useful lives. The following table presents Occidentals ownership interest in the summarized financial information of its equity-method investments: For the years ended December31, (in millions) 2009 2008 2007 Revenues $ 1,080 $ 860 $ 463 Costs and expenses 847 647 381 Net income $ 233 $ 213 $ 82 As of December31, (in millions) 2009 2008 Current assets $ 1,422 $ 411 Non-current assets $ 2,904 $ 1,655 Current liabilities $ 713 $ 387 Long-term debt $ 1,951 $ 726 Other non-current liabilities $ 138 $ 116 Stockholders equity $ 1,524 $ 837 Occidentals investment in Dolphin, which was acquired in 2002, consists of two separate economic interests through which Occidental owns (i)a 24.5-percent undivided interest in the assets and liabilities associated with a DPSA which is proportionately consolidated in the financial statements; and (ii)a 24.5-percent interest in the stock of Dolphin Energy, which is accounted for as an equity investment. In Ecuador, Occidental has a 14-percent interest in the Oleoducto de Crudos Pesados Ltd. (OCP) oil export pipeline, which Occidental records as an equity investment. Occidental has a 50-percent interest in Elk Hills Power, LLC (EHP), a limited liability company that operates a gas-fired, power-generation plant in California, which it accounts for as an equity-method investment. RELATED-PARTY TRANSACTIONS Occidental purchases power, steam and chemicals from and sells oil, gas, chemicals and power to certain of its equity investees at market-related prices. During 2009, 2008 and 2007, Occidental entered into the following related-party transactions and had the following amounts due from or to its related parties: December31, (in millions) 2009 2008 2007 Purchases (a) $ 174 $ 315 $ 236 Sales $ 222 $ 433 $ 351 Services $ 2 $ 1 $ 1 Advances and amounts d

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
FAIR VALUE MEASUREMENTS	NOTE 15 FAIR VALUE MEASUREMENTS FAIR VALUES - RECURRING The following tables provide fair value measurement information for such assets and liabilities that are measured on a recurring basis (in millions): Fair Value Measurements at December 31, 2009 Using Netting and Total Description Level 1 Level 2 Level 3 Collateral (a) Fair Value Assets: Trading securities Marketing and trading assets and other, net $ 230 $ $ $ $ 230 Derivative financial instruments Marketing and trading assets and other, net 373 405 (600 ) 178 Long-term receivables, net 77 (42 ) 35 Total assets $ 603 $ 482 $ $ (642 ) $ 443 Liabilities: Derivative financial instruments Accrued liabilities $ 412 $ 545 $ $ (606 ) $ 351 Deferred credits and other liabilities-other 243 (42 ) 201 Total liabilities $ 412 $ 788 $ $ (648 ) $ 552 Fair Value Measurements at December 31, 2008 Using Netting and Total Description Level 1 Level 2 Level 3 Collateral (a) Fair Value Assets: Derivative financial instruments Marketing and trading assets and other, net $ 611 $ 785 $ $ (1,150 ) $ 246 Long-term receivables, net 3 85 (29 ) 59 Total assets $ 614 $ 870 $ $ (1,179 ) $ 305 Liabilities: Derivative financial instruments Accrued liabilities $ 698 $ 652 $ $ (1,150 ) $ 200 Deferred credits and other liabilities-other 273 (29 ) 244 Total liabilities $ 698 $ 925 $ $ (1,179 ) $ 444 (a) Represents the impact of netting assets, liabilities and collateral when a legal right of offset exists. FAIR VALUES - NONRECURRING At year-end, Occidental evaluates its significant properties for potential impairment. Based on this annual impairment evaluation, certain Argentine producing properties were impaired as of December31, 2009. The fair value of the PPE was $144 million, resulting in an impairment charge of $170 million, and was measured using an income approach based upon internal estimates of future production levels, prices, costs and a discount rate, which were Level 3 inputs. FINANCIAL INSTRUMENTS FAIR VALUE The carrying amounts of cash and cash equivalents and other on-balance-sheet financial instruments, other than fixed-rate debt, approximate fair value. The cost, if any, to terminate off-balance-sheet financial instruments is not significant.

INDUSTRY SEGMENTS AND GEOGRAPHI

INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS	NOTE 16 INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS Occidental conducts its continuing operations through three segments: (1)oil and gas; (2)chemical; and (3)midstream and marketing. The oil and gas segment explores for, develops, produces and markets crude oil, including NGLs and condensate, as well as natural gas. The chemical segment manufactures and markets basic chemicals, vinyls and other chemicals. The midstream and marketing segment gathers, treats, processes, transports, stores, purchases and markets crude oil (including NGLs and condensate), natural gas, CO2and power. It also trades around its assets, including pipelines and storage capacity, and trades commodities and securities. Earnings of industry segments and geographic areas generally exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment and geographic area assets and income from the segments equity investments. Intersegment sales are generally made at prices approximately equal to those that the selling entity is able to obtain in third-party transactions and eliminate upon consolidation. Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash, certain corporate receivables and PPE, and the investment in Joslyn. INDUSTRY SEGMENTS In millions Oil and Gas Chemical Midstream, Marketing and Other Corporate and liminations Total YEAR ENDED DECEMBER 31, 2009 Net sales $ 11,598 (a) $ 3,225 (b) $ 1,016 (c) $ (436 ) $ 15,403 Pretax operating profit(loss) $ 4,735 (d,e) $ 389 $ 235 $ (514 )(f) $ 4,845 (d) Income taxes (1,918 ) (1,918 ) Discontinued operations, net (12 ) (12 ) Net income(loss) $ 4,735 (d,e) $ 389 $ 235 $ (2,444 )(g) $ 2,915 (d) Investments in unconsolidated entities $ 118 $ 131 $ 1,473 $ 10 $ 1,732 Property, plant and equipment additions, net (h) $ 2,907 $ 213 $ 583 $ 39 $ 3,742 Depreciation, depletion and amortization $ 2,688 $ 298 $ 110 $ 21 $ 3,117 Total assets $ 29,646 $ 3,608 $ 8,773 $ 2,202 $ 44,229 YEAR ENDED DECEMBER 31, 2008 Net sales $ 18,187 (a) $ 5,112 (b) $ 1,598 (c) $ (680 ) $ 24,217 Pretax operating profit(loss) $ 10,651 (d,e) $ 669 (i) $ 520 $ (372 )(f) $ 11,468 (d) Income taxes (4,629 ) (4,629 ) Discontinued operations, net 18 18 Net income(loss) $ 10,651 (d,e) $ 669 (i) $ 520 $ (4,983 )(g) $ 6,857 (d) Investments in unconsolidated entities $ 84 $ 82 $ 1,087 $ 10 $ 1,263 Property, plant and equipment additions, net (h) $ 3,973 $ 245 $ 507

Quarterly Financial Data

Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Quarterly Financial Data (Unaudited)	2009 Quarterly Financial Data (Unaudited) Occidental Petroleum Corporation In millions, except per-share amounts and Subsidiaries Three months ended March31 June30 September30 December31 Segment net sales Oil and gas $ 2,137 $ 2,726 $ 3,089 $ 3,646 Chemical 792 811 842 780 Midstream, marketing and other 228 250 285 253 Eliminations (84 ) (100 ) (112 ) (140 ) Net sales $ 3,073 $ 3,687 $ 4,104 $ 4,539 Gross profit $ 904 $ 1,518 $ 1,869 $ 2,252 Segment earnings Oil and gas (b) $ 545 $ 1,083 $ 1,464 $ 1,643 (a) Chemical 169 115 72 33 Midstream, marketing and other 14 63 77 81 728 1,261 1,613 1,757 Unallocated corporate items Interest expense, net (20 ) (23 ) (33 ) (33 ) Income taxes (241 ) (455 ) (549 ) (673 ) Other (96 ) (99 ) (102 ) (108 ) Income from continuing operations (b) 371 684 929 943 Discontinued operations, net (3 ) (2 ) (2 ) (5 ) Net income attributable to common stock $ 368 $ 682 $ 927 $ 938 Basic earnings per common share (b) Income from continuing operations $ 0.45 $ 0.84 $ 1.14 $ 1.16 Discontinued operations, net (0.01 ) Basic earnings per common share $ 0.45 $ 0.84 $ 1.14 $ 1.15 Diluted earnings per common share (b) Income from continuing operations $ 0.45 $ 0.84 $ 1.14 $ 1.16 Discontinued operations, net (0.01 ) Diluted earnings per common share $ 0.45 $ 0.84 $ 1.14 $ 1.15 Dividends per common share $ 0.32 $ 0.33 $ 0.33 $ 0.33 Market price per common share High $ 64.00 $ 71.59 $ 79.58 $ 85.20 Low $ 47.50 $ 51.52 $ 58.67 $ 73.74 (a) Includes a fourth quarter pre-tax charge of $170 million for asset impairments related to certain Argentine producing properties. (b) Represent amounts attributable to common stock after deducting noncontrolling interest amounts. 2008 Quarterly Financial Data (Unaudited) Occidental Petroleum Corporation In millions, except per-share amounts and Subsidiaries Three months ended March31 June30 September30 December31 Segment net sales Oil and gas $ 4,518 $ 5,501 $ 5,422 $ 2,746 Chemical 1,267 1,386 1,454 1,005 Midstream, marketing and other 405 418 381 394 Eliminations (170 ) (189 ) (197 ) (124 ) Net sales $ 6,020 $ 7,116 $ 7,060 $ 4,021 Gross profit $ 3,478 $ 4,334 $ 4,118 $ 1,612 Segment earnings Oil and gas (c) $ 2,888 $ 3,806 $ 3,618 $

Supplemental Oil and Gas Inform

Supplemental Oil and Gas Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Supplemental Oil and Gas Information (Unaudited)	Supplemental Oil and Gas Information (Unaudited) The following tables set forth Occidentals net interests in quantities of proved developed and undeveloped reserves of crude oil, NGLs, condensate and natural gas and changes in such quantities. Unless otherwise indicated hereafter, discussion of oil or oil and liquids refers to crude oil, condensate and NGLs. In addition, discussions of oil and gas production or volumes, in general, refer to sales volumes unless context requires or it is indicated otherwise. The reserves are stated after applicable royalties. The estimated reserves include Occidentals economic interests under production sharing contracts (PSCs) and other similar economic arrangements. Occidentals estimates of proved reserves and associated future net cash flows as of December31, 2009 were made solely by Occidentals technical personnel and are the responsibility of management. The reserve estimation process involves reservoir engineers, geoscientists, planning engineers and financial analysts. As part of this process, all reserves volumes are estimated by a forecast of production rates, operating costs and capital expenditures. Price differentials between benchmark prices and realized prices and specifics of each operating agreement are then used to estimate the net reserves. Production rate forecasts are derived by a number of methods, including estimates from decline curve analyses, material balance calculations that take into account the volume of substances replacing the volumes produced and associated reservoir pressure changes, or computer simulation of the reservoir performance. Operating and capital costs are forecasted using the current cost environment applied to expectations of future operating and development activities. The current Senior Director of Worldwide Reserves and Reservoir Engineering is responsible for overseeing the preparation of reserve estimates, including the internal audit and review of Occidentals oil and gas reserves data. The Senior Director has over 28 years of experience in the upstream sector of the exploration and production business, and has held various assignments in North America, Asia and Europe. He is a three-time past Chair of the Society of Petroleum Engineers Oil and Gas Reserves Committee. He is an American Association of Petroleum Geologists (AAPG) Certified Petroleum Geologist and the current Chair of the AAPG Committee on Resource Evaluation. He is a member of the Society of Petroleum Evaluation Engineers, the Colorado School of Mines Potential Gas Committee and the UNECE Expert Group on Resource Classification. The Senior Director has Bachelor of Science and Master of Science degrees in geology from Emory University in Atlanta. Occidental has a Corporate Reserves Review Committee (Reserves Committee), consisting of senior corporate officers, to monitor and review Occidentals oil and gas reserves. The Reserves Committee reports to the Audit Committee of Occidentals Board of Directors periodically during the year. Since 2003, Occidental has retained Ryder Scott Company, L.P. (Ryder Scott), independent petroleum engineering consultants, to review its annual oil and

Scheudle II -- Valuation and Qu

Scheudle II -- Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II -- Valuation and Qualifying Accounts
Schedule II -- Valuation and Qualifying Accounts	Schedule II Valuation and Qualifying Accounts Occidental Petroleum Corporation In millions and Subsidiaries Additions Balance at Beginning ofPeriod Charged to Costs and Expenses Charged to Other Accounts Deductions (a) Balance at End of Period 2009 Allowance for doubtful accounts $ 45 $ (7 ) $ $ (8 ) $ 30 Environmental $ 439 $ 26 $ 4 $ (66 ) $ 403 Litigation, tax and other reserves 225 2 (9 ) (55 ) 163 $ 664 $ 28 $ (5 ) $ (121 ) $ 566 (b) 2008 Allowance for doubtful accounts $ 35 $ 11 $ $ (1 ) $ 45 Environmental $ 457 $ 29 $ 25 $ (72 ) $ 439 Litigation, tax and other reserves 241 67 (9 ) (74 ) 225 $ 698 $ 96 $ 16 $ (146 ) $ 664 (b) 2007 Allowance for doubtful accounts $ 15 $ 7 $ 13 $ $ 35 Environmental $ 412 $ 108 $ 5 $ (68 ) $ 457 Litigation, tax and other reserves 243 24 (5 ) (21 ) 241 $ 655 $ 132 $ $ (89 ) $ 698 (b) (a) Primarily represents payments. (b) Of these amounts, $119 million, $130 million and $139 million in 2009, 2008 and 2007, respectively, are classified as current.

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	OCCIDENTAL PETROLEUM CORP /DE/
Entity Central Index Key	0000797468
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			52.73
Entity Common Stock, Shares Outstanding		811,955,959