MUSCAT, Oman--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development
Company of Abu Dhabi (Mubadala) today announced the signing of an
Exploration and Production Sharing Agreement ("EPSA") with the Ministry
of Oil and Gas in the Sultanate of Oman. Under the terms of the EPSA,
the parties will develop four existing gas fields and explore for
potential new discoveries in a newly formed contract area ("Habiba" -
Block 62) in Northern Oman. The 20 year agreement covers a 2,269 square
kilometre area.
Oxy will serve as operator under the EPSA and hold a 48-percent
interest, with Mubadala holding a 32-percent interest and the Oman Oil
Company holding the remaining 20 percent.
"We are pleased to expand upon our existing relationship with Oman and
look forward to working with our partners to help ensure that future
supplies of natural gas will be available to fuel Oman's economic
growth," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of
Occidental. "Signing this EPSA is another important step in the
implementation of our growth strategy within the region. The development
of the substantial natural gas resources contained within the contract
area will create significant value for the people of Oman and for our
shareholders."
"This EPSA is a logical expansion of our energy portfolio in Oman and we
are pleased to build upon our long-standing partnership with Oxy in this
new venture," said Khaldoon Khalifa Al-Mubarak, CEO and Managing
Director of Mubadala. The project is another example of Mubadala's
strategy of leveraging Abu Dhabi's history and experience as a trusted
energy supplier to build a diverse range of energy related businesses in
the UAE and internationally."
Exploration, appraisal and development activities will commence
immediately. Production from the area is expected to begin in 2010 and
reach a plateau of approximately 165 MMscfd (27,500 boepd) by year end
2011. Oxy's net share of production at plateau is expected to be
approximately 10,000 boepd; with Mubadala's net share around 6,000 boepd.
Total capital investment in the contract area is expected to be
approximately $500 million over the next four years. In addition to the
field developments, this investment will include up to nine exploration
wells over a six year exploration period to test the upside potential of
the shallow and deep gas plays found in the region.
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.