EXHIBIT 12 OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES FOR THE FIVE YEARS ENDED DECEMBER 31, 1998 Amounts in millions, except ratios 1998 1997 1996 1995 1994 - ----------------------------------------- ------ ------ ------ ------ ------ Income (loss) from continuing operations(a) .......................... $ 400 $ 245 $ 486 $ 325 $ (236) ------ ------ ------ ------ ------ Add: Provision (credit) for taxes on income (other than foreign oil and gas taxes).......................... 204 47 99 155 (59) Interest and debt expense(b) ........ 576 446 492 591 586 Portion of lease rentals representative of the interest factor.............................. 36 39 38 43 50 ------ ------ ------ ------ ------ 816 532 629 789 577 ------ ------ ------ ------ ------ Earnings before fixed charges............ $1,216 $ 777 $1,115 $1,114 $ 341 ====== ====== ====== ====== ====== Fixed charges Interest and debt expense including capitalized interest(b) ............ $ 594 $ 462 $ 499 $ 595 $ 589 Portion of lease rentals representative of the interest factor.............................. 36 39 38 43 50 ------ ------ ------ ------ ------ Total fixed charges.................. $ 630 $ 501 $ 537 $ 638 $ 639 ====== ====== ====== ====== ====== Ratio of earnings to fixed charges....... 1.93 1.55 2.08 1.75 n/a(c) ========================================= ====== ====== ====== ====== ====== (a) Includes (1) minority interest in net income of majority-owned subsidiaries having fixed charges and (2) income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received. (b) Includes proportionate share of interest and debt expense of 50-percent- owned equity investments. (c) Not computed due to less than one-to-one coverage. Earnings were inadequate to cover fixed charges by $298 million in 1994.