LOS ANGELES--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development
Company (Mubadala), through its business unit Mubadala Oil & Gas,
announced today that they have signed a Development and Production
Sharing Agreement (DPSA) with the National Oil and Gas Authority of
Bahrain (NOGA) for the further development of the Bahrain Field. Under
this agreement, a Joint Operating Company will be formed to serve as
operator for the project under the DPSA.
Oxy will hold a 48-percent interest in the DPSA, with Mubadala holding a
32-percent interest and a subsidiary of NOGA holding the remaining 20
percent.
"We are pleased to expand upon our existing relationship with Abu Dhabi
and look forward to working with Bahrain on this exciting project," said
Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental.
"Signing this DPSA is another important step in the implementation of
our growth strategy in the Middle East, and the further development of
the Bahrain Field will create significant value for the people of
Bahrain and for our shareholders."
"We are delighted with the successful conclusion of our joint
negotiations with NOGA," said Khaldoon Khalifa Al Mubarak, Chief
Executive Officer and Managing Director, Mubadala Development Company.
"Our collaboration with Oxy is wholly in line with Mubadala's strategy
of developing a top in class international oil and gas unit focused on
exploration and development projects in the Middle East, North Africa,
Central and South East Asia."
Development activities will commence immediately. Oil production from
the field is expected to more than double to approximately 75,000
barrels per day within five years and grow to a peak level of more than
100,000 barrels per day thereafter. Gas production capacity is expected
to grow from the current level of 1.7 billion cubic feet per day to over
2.5 billion cubic feet per day under the Field development plan. Oxy's
net share of production is expected to be approximately 28,000 barrels
of oil equivalent per day (BOEPD) in 2010 growing to 56,000 BOEPD within
five years. Mubadala's net share of production is expected to be
approximately 18,500 BOEPD and 37,000 BOEPD for the same time periods.
Net reserve additions over the life of the project for Oxy are estimated
to be 450 million barrels of oil equivalent. Mubadala's net reserve
additions are estimated to be 300 million barrels of oil equivalent over
the life of the project.
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 business development and
investment company that acts as a catalyst to realize Abu Dhabi's
ambition to diversify and transform its economy, develop a new
generation of business leaders and build a prosperous future for its
people. By harnessing expertise and resources, Mubadala generates
sustainable financial returns and builds businesses, clusters of
expertise and even whole new industries. Bringing together and managing
a diverse portfolio of opportunities in areas such as energy,
healthcare, technology, aerospace and real estate, Mubadala invests for
the long term as an active and diligent partner.
Mubadala Oil & Gas is a business unit within Mubadala that pursues
acquisition, exploration and development opportunities in the Middle
East, North and West Africa, and Central and Southeast Asia. Its
portfolio of assets include Pearl Energy, a wholly-owned subsidiary of
Mubadala that operates in four Southeast Asian countries, and
exploration and production activities in Algeria, Libya and Oman.
Current net working interest production from its participating interests
in Dolphin Energy, the Mukhaizna field and Pearl Energy is approximately
266,000 barrels of oil equivalent per day (BOEPD).
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: not successfully completing (or any
material delay in) field development or capital expenditures;
higher-than-expected costs; changes in laws or regulations; political
risk; exploration risks, such as drilling of unsuccessful wells; global
commodity pricing fluctuations and supply/demand considerations for oil
and gas; and operational interruptions. 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.