Occidental Petroleum Replaces 206 Percent of 2009 Production

LOS ANGELES--(BUSINESS WIRE)--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 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.

																	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.