LOS ANGELES--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development
Company (Mubadala), a business development and investment company based
in Abu Dhabi, announced today that they have signed an Interim Agreement
with the National Oil and Gas Authority of Bahrain (NOGA) for the
further development of the Bahrain Field. Under this agreement, OXY,
Mubadala and NOGA will complete work on the formation of a new joint
operating company (JOC) that will implement a development plan to
dramatically increase the Bahrain Field's production of both oil and gas.
During this interim phase, Oxy and Mubadala will continue to have
exclusive rights to finalize negotiations on a twenty-year Development
and Production Sharing Agreement (DPSA) for the Bahrain Field. It is
expected that these negotiations will be concluded by the end of April,
2009.
"We are proud of the rapid progress we have made with NOGA on beginning
the transition to a new JOC to oversee the further development of this
giant Field and of the important milestone that this Agreement reflects
in our relationship with the Kingdom of Bahrain. We look forward to
working with NOGA and the management and staff of the Bahrain Petroleum
Company (Bapco) as we move forward with this exciting new phase of the
oil and gas industry in Bahrain," said Dr. Ray R. Irani, Chairman and
Chief Executive Officer of Occidental.
"This project is a continuation of Oxy's strategy for growth within the
Middle East and consistent with our demonstrated corporate strength of
employing improved and enhanced recovery techniques to maximize value
from large, mature oil and gas fields. We believe the further
development of this field will greatly benefit Bahrain and its citizens;
as well as providing an important new growth project for our
shareholders," said Dr. Irani.
"Mubadala is an active developer in the international energy sector and
this agreement is in line with our strategy of leveraging Abu Dhabi's
history and experience to build a diverse range of energy related
businesses in the UAE and internationally," said Khaldoon Khalifa Al
Mubarak, chief executive officer and managing director, Mubadala
Development Company. "This project further expands Mubadala's portfolio
of first class assets in the upstream oil and gas sector."
Capital investment in the project is expected to be approximately $1.5
billion on a gross basis over the initial five years of the DPSA with
significant additional investments thereafter. The development plan is
expected to increase oil production to over 100,000 barrels of oil per
day and significantly increase gas production capacity above today's
level of approximately 1,500 mmcfd.
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.
About Mubadala Development Company
Mubadala Development Company (Mubadala) is a Public Joint Stock Company
headquartered in Abu Dhabi, capital of the United Arab Emirates. Its
focus is on developing and managing an extensive and economically
diverse portfolio of commercial initiatives. It does this either
independently or in partnership with leading international
organizations. Mubadala's commercial strategy is fundamentally built on
long-term capital-intensive investments that deliver strong financial
returns.
The company manages a multi-billion dollar portfolio of local, regional
and international investments, projects and initiatives. Through its
investment and development projects, Mubadala is both a catalyst for,
and a reflection of, the drive for economic diversification of the
Emirate of Abu Dhabi. Its impact is evident domestically and
internationally in sectors such as energy, aerospace, real estate,
healthcare, technology, infrastructure and services.
Mubadala's sole shareholder is the Government of the Emirate of Abu
Dhabi. For more information about Mubadala, its partnerships and
activities please visit www.mubadala.ae.
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 and gas; higher-than-expected
costs; operational interruptions; political risk; and not successfully
completing (or any material delay in) any capital expenditure. You
should not place undue reliance on these forward-looking statements
which speak only as of the date of this filing. 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 Occidental's 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.