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form8k-20100203.htm
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 3, 2010

OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
1-9210
95-4035997
(State or other jurisdiction
(Commission
(I.R.S. Employer
of incorporation)
File Number)
Identification No.)

10889 Wilshire Boulevard
    
Los Angeles, California
  
90024
(Address of principal executive offices)
  
(ZIP code)

Registrant’s telephone number, including area code:
(310) 208-8800
 
 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

[   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 
 
 

Section 8 – Other Events

Item 8.01.  Other Events

On February 3, 2010, Occidental Petroleum Corporation issued a press release announcing preliminary proved reserves totaling 3.23 billion barrels of oil equivalent compared to 2.98 billion barrels of oil equivalent at the end of 2008.  The full text of the press release is attached to this report as Exhibit 99.1.


Section 9 - Financial Statements and Exhibits

Item 9.01.  Financial Statements and Exhibits

(d)      Exhibits

99.1
  
Press release dated February 3, 2010.
 
 
 
 
1
 
 

 
SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
OCCIDENTAL PETROLEUM CORPORATION
  
 
(Registrant)
  
     
     
DATE:  February 3, 2010
/s/ ROY PINECI
  
 
Roy Pineci, Vice President, Controller
  
 
and Principal Accounting Officer
  
     
     
     
     
     
     



 
 
2
 
 


EXHIBIT INDEX

99.1
  
Press release dated February 3, 2010.


ex99_1-20100203.htm
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

 
1
 
 

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.
-0-
 
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

 
2
 
 
 
Attachment 1
                                     
                                     
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.