LOS ANGELES--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE:OXY) announced today that in 2007
the company's consolidated subsidiaries had preliminary proved reserve
additions from all sources of 242 million barrels of oil equivalent
(BOE) compared to production of 209 million BOE, for a production
replacement rate of 116 percent. Occidental incurred $4.45 billion in
costs for oil and gas property acquisitions and exploration and
development activities. At the end of 2007, Occidental's consolidated
reserves-to-production ratio, assuming production remained at the 2007
level, was 13.7 years.
At year-end 2007, Occidental's worldwide proved reserves, on a
consolidated basis, totaled 2.87 billion BOE compared to 2.83 billion
BOE at the end of 2006.
The 2007 consolidated proved reserve additions totaled 242 million BOE.
Improved recovery provided 104 percent of total additions, acquisitions
25 percent, extensions and discoveries 10 percent, which were partially
offset by reductions in previous estimates of the total proved reserve
additions.
Over 90 percent of the net additions were in the United States, with the
most substantial increases in the Permian Basin, Elk Hills field and the
Rocky Mountains. In the Permian Basin, the increased reserves were
attributable to higher prices and enhanced recovery techniques, such as
drilling and water flood wells, additional CO2 flood development
programs and bolt-on acquisitions. The Elk Hills operations employ
infill drilling and both gas flood and water flood techniques which
contributed to their increased reserves.
In 2007, Occidental increased proved developed reserves to 80 percent of
total proved reserves from 78 percent at year-end 2006. The Dolphin
project transferred 101 million BOE to the proved developed category
during 2007, with no remaining undeveloped reserves at December 31, 2007
for this project. In the United States, the Elk Hills field and the
Permian Basin transferred 21 million BOE each into proved developed
reserves from undeveloped.
For the three-year period 2005-2007, Occidental's consolidated proved
reserve additions totaled 1.125 billion BOE, and total production
equaled 580 million BOE, for a reserve replacement rate of 194 percent.
Over the past three years, Occidental incurred $17.63 billion in costs
for property acquisitions and exploration and development activities.
Disclosures in this press release are for continuing operations as of
December 31, 2007; accordingly, Pakistan and Horn Mountain reserves and
costs have been excluded.
Occidental sold its 33 million BOE share of a Russian joint venture in
January 2007. After this sale, only the minority shareholder's interest
in a Colombian affiliate and an equity investment in Yemen remain
classified in other interests.
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.
Forward-Looking Statements
Statements in this release that contain words such as "will," "expect"
or "estimate," or otherwise relate to the future, are forward-looking
and involve risks and uncertainties that could significantly affect
expected results. Factors that could cause results to differ materially
include, but are not limited to: exploration risks, such as drilling of
unsuccessful wells; global commodity pricing fluctuations and
supply/demand considerations for oil, gas and chemicals;
higher-than-expected costs; political risk; operational interruptions;
changes in tax rates and not successfully completing (or any material
delay in) any expansion, capital expenditure, acquisition, or
disposition. You should not place undue reliance on these
forward-looking statements which speak only as of the date of this
release. Unless legally required, Occidental does not undertake any
obligation to update any forward-looking statements as a result of new
information, future events or otherwise. U.S. investors are urged to
consider carefully the disclosure in our Form 10-K, available through
the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383)
or on the Internet at http://www.oxy.com.
You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
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, condensate
and natural gas, and changes in such quantities. Crude oil reserves (in
millions of barrels) include condensate. 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.
|
|
|
Consolidated
|
|
Other
|
|
|
|
Subsidiaries
|
|
Interests
|
|
(million BOE)
|
|
Oil
|
|
Gas
|
|
BOE
|
|
Oil
|
|
Gas
|
|
BOE
|
|
PROVED DEVELOPED AND UNDEVELOPED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2004
|
|
1,858
|
|
|
2,851
|
|
|
2,334
|
|
|
43
|
|
|
--
|
|
|
43
|
|
|
Revisions of previous estimates
|
|
(18
|
)
|
|
21
|
|
|
(15
|
)
|
|
8
|
|
|
6
|
|
|
9
|
|
|
Improved recovery
|
|
107
|
|
|
129
|
|
|
129
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Extensions and discoveries
|
|
46
|
|
|
427
|
|
|
117
|
|
|
1
|
|
|
--
|
|
|
1
|
|
|
Purchases of proved reserves
|
|
112
|
|
|
164
|
|
|
139
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Sales of proved reserves
|
|
(8
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Production
|
|
(135
|
)
|
|
(215
|
)
|
|
(171
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(8
|
)
|
|
Balance at December 31, 2005
|
|
1,962
|
|
|
3,374
|
|
|
2,524
|
|
|
45
|
|
|
--
|
|
|
45
|
|
|
Revisions of previous estimates
|
|
21
|
|
|
(31
|
)
|
|
16
|
|
|
(7
|
)
|
|
8
|
|
|
(6
|
)
|
|
Improved recovery
|
|
116
|
|
|
127
|
|
|
137
|
|
|
(1
|
)
|
|
--
|
|
|
(1
|
)
|
|
Extensions and discoveries
|
|
24
|
|
|
58
|
|
|
34
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Purchases of proved reserves
|
|
254
|
|
|
435
|
|
|
326
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Sales of proved reserves
|
|
(4
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Production
|
|
(160
|
)
|
|
(237
|
)
|
|
(200
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
Balance at December 31, 2006
|
|
2,213
|
|
|
3,724
|
|
|
2,833
|
|
|
30
|
|
|
--
|
|
|
30
|
|
|
Revisions of previous estimates
|
|
(80
|
)
|
|
(90
|
)
|
|
(95
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Improved recovery
|
|
183
|
|
|
417
|
|
|
253
|
|
|
1
|
|
|
--
|
|
|
1
|
|
|
Extensions and discoveries
|
|
18
|
|
|
35
|
|
|
24
|
|
|
(1
|
)
|
|
--
|
|
|
(1
|
)
|
|
Purchases of proved reserves
|
|
57
|
|
|
18
|
|
|
60
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Sales of proved reserves
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(33
|
)
|
|
--
|
|
|
(33
|
)
|
|
Production
|
|
(165
|
)
|
|
(261
|
)
|
|
(209
|
)
|
|
1
|
|
|
--
|
|
|
1
|
|
|
Balance at December 31, 2007
|
|
2,226
|
|
|
3,843
|
|
|
2,866
|
|
|
(2
|
)
|
|
--
|
|
|
(2
|
)
|
|
PROVED DEVELOPED RESERVES (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2004
|
|
1,511
|
|
|
1,728
|
|
|
1,799
|
|
|
37
|
|
|
--
|
|
|
37
|
|
|
December 31, 2005
|
|
1,537
|
|
|
1,906
|
|
|
1,855
|
|
|
37
|
|
|
--
|
|
|
37
|
|
|
December 31, 2006
|
|
1,771
|
|
|
2,637
|
|
|
2,211
|
|
|
23
|
|
|
--
|
|
|
23
|
|
|
December 31, 2007
|
|
1,788
|
|
|
3,069
|
|
|
2,300
|
|
|
(2
|
)
|
|
--
|
|
|
(2
|
)
|
|
(a)
|
|
Approximately three percent of the proved developed oil reserves and
approximately 14 percent of the proved developed gas reserves at
December 31, 2007 are non-producing. Occidental's plans are to begin
producing these reserves in 2008.
|
|
|
|
|
PRELIMINARY COSTS INCURRED
Occidental's 2007, 2006 and 2005 costs incurred in oil and gas property
acquisition, exploration and development activities, whether capitalized
or expensed, were as follows:
|
|
|
Consolidated
|
|
Other
|
|
(in millions)
|
|
Subsidiaries
|
|
Interests (b)
|
|
FOR THE YEAR ENDED
|
|
|
|
|
|
DECEMBER 31, 2007
|
|
|
|
|
|
Property Acquisition Costs
|
|
|
|
|
|
Proved Properties
|
|
$
|
1,016
|
|
$
|
--
|
|
|
Unproved Properties
|
|
|
119
|
|
|
--
|
|
|
Exploration Costs
|
|
|
331
|
|
|
(4
|
)
|
|
Development Costs
|
|
|
2,987
|
|
7
|
|
|
Costs Incurred
|
|
$
|
4,453
|
|
$
|
3
|
|
|
FOR THE YEAR ENDED
|
|
|
|
|
|
DECEMBER 31, 2006
|
|
|
|
|
|
Property Acquisition Costs (a)
|
|
|
|
|
|
Proved Properties
|
|
$
|
4,899
|
|
$
|
--
|
|
|
Unproved Properties
|
|
|
1,142
|
|
|
--
|
|
|
Exploration Costs
|
|
|
313
|
|
1
|
|
|
Development Costs
|
|
|
2,518
|
|
|
32
|
|
|
Costs Incurred
|
|
$
|
8,872
|
|
$
|
33
|
|
|
FOR THE YEAR ENDED
|
|
|
|
|
|
DECEMBER 31, 2005
|
|
|
|
|
|
Property Acquisition Costs
|
|
|
|
|
|
Proved Properties
|
|
$
|
1,782
|
|
$
|
--
|
|
|
Unproved Properties
|
|
|
398
|
|
|
--
|
|
|
Exploration Costs
|
|
|
232
|
|
|
(2
|
)
|
|
Development Costs
|
|
|
1,890
|
|
|
15
|
|
|
Costs Incurred
|
|
$
|
4,302
|
|
$
|
13
|
|
|
(a)
|
|
Includes acquisition costs and related step-up for deferred income
taxes of $1.34 billion for the purchase of Vintage Petroleum Inc.
There was no goodwill recorded for this acquisition.
|
|
(b)
|
|
Includes equity investees' costs in Russia (sold in 2007) and Yemen,
partially offset by minority interests in a Colombian affiliate.
|
|
|
|
PRELIMINARY 5-YEAR DATA
|
|
|
|
CONSOLIDATED SUBSIDIARIES
|
|
|
|
|
|
Reserve
|
|
|
|
Costs
|
|
|
|
Additions
|
|
Production
|
|
Incurred
|
|
|
|
(Million BOE)
|
|
(Million BOE)
|
|
($ Millions)
|
|
2003
|
|
336
|
|
166
|
|
1,501
|
|
2004
|
|
241
|
|
166
|
|
1,700
|
|
2005
|
|
370
|
|
171
|
|
4,302
|
|
2006
|
|
513
|
|
200
|
|
8,872*
|
|
2007
|
|
242
|
|
209
|
|
4,453
|
|
|
|
3-Year
|
|
|
|
|
|
|
|
Average
|
|
375
|
|
193
|
|
5,876
|
|
|
|
5-Year
|
|
|
|
|
|
|
|
Average
|
|
340
|
|
182
|
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
Reserves Replacement
(Million BOE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Improved
|
|
Extensions
|
|
|
|
|
|
|
|
Revisions
|
|
Recovery
|
|
Discoveries
|
|
Acquisitions
|
|
Total
|
|
2003
|
|
5
|
|
96
|
|
128
|
|
107
|
|
336
|
|
2004
|
|
50
|
|
110
|
|
41
|
|
40
|
|
241
|
|
2005
|
|
(15)
|
|
129
|
|
117
|
|
139
|
|
370
|
|
2006
|
|
16
|
|
137
|
|
34
|
|
326
|
|
513
|
|
2007
|
|
(95)
|
|
253
|
|
24
|
|
60
|
|
242
|
|
|
|
3-Year
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
(31)
|
|
173
|
|
58
|
|
175
|
|
375
|
|
|
|
5-Year
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
(8)
|
|
145
|
|
69
|
|
134
|
|
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Incurred
($ Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
Development
|
|
|
|
|
|
Acquisitions
|
|
Costs
|
|
Costs
|
|
Total
|
|
2003
|
|
368
|
|
80
|
|
1,053
|
|
1,501
|
|
2004
|
|
166
|
|
132
|
|
1,402
|
|
1,700
|
|
2005
|
|
2,180
|
|
232
|
|
1,890
|
|
4,302
|
|
2006
|
|
6,041
|
|
313
|
|
2,518
|
|
8,872*
|
|
2007
|
|
1,135
|
|
331
|
|
2,987
|
|
4,453
|
|
|
|
3-Year
|
|
|
|
|
|
|
|
|
|
Average
|
|
3,119
|
|
292
|
|
2,465
|
|
5,876
|
|
|
|
5-Year
|
|
|
|
|
|
|
|
|
|
Average
|
|
1,978
|
|
218
|
|
1,970
|
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
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.
|