2. Occidental Petroleum Corporation
Clean, efficient and reliable energy supplies
Occidental Petroleum Corporation (OXY) is an international oil
are critical to the growth and development of
and gas exploration and production company as well as a major
the global economy. Energy fuels the economic
North American chemical manufacturer.
expansion that provides jobs and improves
health care, education and living standards.
As the world’s energy demands grow, so does
With operations in the United States, the Middle Occidental’s Latin American operations include
the need for additional sources.
East, North Africa and Latin America, Occidental producing assets in Colombia, Argentina and
Occidental Petroleum Corporation has the
helps to meet the world’s energy needs. In the Bolivia. Occidental Chemical Corporation
expertise and experience to find and develop
Middle East and North Africa, Occidental has manufactures vinyls, specialty chemical products
new sources of oil and natural gas today to
major assets in Oman, Qatar, Libya, the United and basic chemicals, such as chlorine and caustic
fuel tomorrow’s economic growth — without
Arab Emirates (U.A.E.) and Yemen. In the United soda — the building blocks for indispensable
compromising its strong commitment to protecting
States, Occidental is the largest oil producer products such as pharmaceuticals, water
the environment, upholding high standards of
in Texas and the largest natural gas producer disinfectants and detergents.
social responsibility and safeguarding the health
in California.
and safety of employees and neighbors.
Occidental Development Company
Mezzanine Floor, Crescent Towers
Zayed the 1st Street
Abu Dhabi, United Arab Emirates
Elk Hills
Occidental Petroleum Corporation Long Beach
10889 Wilshire Boulevard Permian Basin
Mid-Continent Libya
Los Angeles, California 90024-4201 USA
Colombia Yemen
www.oxy.com
Bolivia Bahrain
Argentina Oman
United Arab Emirates
Qatar
Forward-Looking Statements
Cover: Oxy’s operation in Oman’s Safah Field. Oxy’s first project
Statements in this publication that contain words such as “will,” “expect” or “estimate,” or otherwise relate to the future, are
in Oman incorporated technological skills and regional expertise
forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to
which resulted in a successful partnership that thrives today.
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 risks; and not
This page: A Dolphin Energy Limited drilling rig in Qatar’s
successfully completing (or any material delay in) any expansion, capital expenditure, acquisition, or disposition. You should not
North Field. Oxy is a 24.5-percent interest partner in this premier
place undue reliance on these forward-looking statements, which speak only as of the date of this publication. Unless legally required,
transborder energy project that became operational in July 2007.
Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future
events or otherwise. 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 www.oxy.com. You also can obtain a copy from
the SEC by calling 1-800-SEC-0330. 1
3. ISND & ISSD:
1 Enhanced Oil Recovery
Regional Experience and Expertise 2 1 The Idd El Shargi North Dome Field (ISND)
is located 80 kilometers to the east of the Qatar
peninsula in 32 meters of water and today
contains an estimated 4 billion barrels of oil
in place.*
2 The Idd El Shargi South Dome Field (ISSD)
is a satellite facility located about 24 kilometers
Occidental Petroleum Corporation has been an active investor in to the south of ISND.
the Middle East and North Africa for four decades. The company’s This diagram depicts the dome structures
that trap the oil and two of the seven
producing reservoirs. The ISND field had
first venture into international exploration resulted in a number of historically experienced a low recovery rate
because of the field’s complex geology.
giant discoveries in Libya in the 1960s. Oxy’s enhanced recovery effort is aggressively
developing the field through waterflooding,
innovative drilling techniques and state-of-
the-art reservoir characterization.
Since then, Occidental has expanded its presence Lending technical expertise to develop the
in the Middle East with operations in the U.A.E., region’s rich resources, recognizing the importance
Qatar, Oman, Yemen and Bahrain. Collectively, of hiring local employees and respecting local Taweelah
Ras Laffan
Occidental’s assets in the region account for roughly customs are integral elements of Oxy’s growth Dubai
ISND & ISSD
Fujairah
22 percent of the company’s worldwide production. strategy. Doha Qatar
Al Ain
Abu Dhabi
Oman
Dolphin Project Gas Pipeline U.A.E. Oman
Ras Laffan:
Natural Gas Processing Plant
Oman
The Dolphin Project natural gas produced
United Arab Emirates
in Qatar’s North Field is processed at this
Qatar massive 1 kilometer by 2 kilometer gas plant
Bahrain in Ras Laffan, Qatar.
Yemen
Libya
Dolphin Project Qatar
Occidental is a partner in the Dolphin Project, produce natural gas and associated natural Oxy’s success in Qatar helped establish Oxy as application of waterfloods, innovative drilling
one of the world’s premier transborder energy gas liquids. The liquids are separated from the one of the world’s premier companies in enhanced techniques and state-of-the-art reservoir
projects. In July 2007, the Dolphin Project became gas stream at Dolphin’s gas processing plant oil recovery from mature fields. Since taking over characterization, Oxy is maximizing recovery rates
operational, delivering natural gas from Qatar’s in Ras Laffan, Qatar, one of the largest facilities operation of the offshore Idd El Shargi North Dome and adding new reserves. In 2005, Oxy added
North Field to customers in the U.A.E. As one of its kind in the world. The processed gas is (ISND) oil field, Oxy has reversed nearly 25 years major new processing facilities to the existing
of the largest energy initiatives undertaken in transported through a 48-inch, 370-kilometer of steadily declining production. The field went PS-1 offshore platform doubling the fluid handling
the Middle East, the Dolphin Project is expected long subsea pipeline to the Taweelah receiving into production in 1963 and peaked at 50,000 capacity. The platform addition is a remarkable
to have a significant impact on the region’s facility in the U.A.E. Supplying gas to the U.A.E. barrels per day in 1970. When Oxy took over technical achievement that has enabled Oxy to
development and to be a steady contributor to and in the near future to Oman, Dolphin Energy the operation in 1994, average daily production increase power generation five-fold and more
Oxy’s financial performance over the next Limited will initially transport approximately two had fallen to less than 20,000 barrels. With the than double gas compression, water injection
25 years. billion cubic feet per day. application of advanced drilling systems and new and separation capacity.
technologies, Oxy was able to boost production
The project’s scope included drilling more than 24 Oxy’s successful redevelopment of ISND resulted
to a rate of 120,000 barrels per day, more than
wells in the Khuff Zone of Qatar’s North Field, one in the Government of Qatar awarding Oxy a
double the previous record.
of the world’s largest gas reservoirs. These wells second production sharing contract covering
Today, the ISND field has an estimated 4 billion the Idd El Shargi South Dome (ISSD) field,
barrels of oil remaining in place. Through the
* 24 kilometers south of ISND.
* The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the commission, to
disclose only proved reserves demonstrated by actual production or conclusive formation tests to be economically producible
under existing economic and operating conditions. The commission’s guidelines strictly prohibit using “oil in place” and “recoverable 3
2
reserves” in filings with it.
4. Tripoli 35
36
Qatar
59
52 53 NC145
Muscat
NC29
NC143
U.A.E.
102
9
103
NC74
27
106
NC150
124
NC144 Oman
131
163
Libya
Yemen 53 54
exploration areas historic producing areas
In 2005, Oxy took over operations of the Mukhaizna field,
one of the largest in Oman.
Libya Oman
Occidental’s prominent presence in Libya, with Oxy’s development work over the past few years In 2005, Oxy took over operation of the Mukhaizna
approximately 121,400 square kilometers of in Oman illustrates the company’s commitment to field, one of the largest in Oman. Oxy and its
exploration and production areas, makes Oxy the enhancing Oman’s diverse oil and gas resources. partners are implementing an aggressive drilling
country’s largest net oil and gas acreage holder. Through successful enhanced oil recovery methods, and development program, including a large-scale
Oxy was the first U.S. company to resume oil extensive 3-D seismic surveying and an 85-percent steam flood project to fully develop the field’s
operations in Libya after sanctions were lifted. exploration drilling success rate, Oxy has increased enormous heavy oil resources. The goal is to
In July 2005, Oxy reentered its historic producing its production, reserves and scope of operations increase production 17-fold from 8,500 barrels
areas after a 19-year absence and began over its more than 25-year tenure in Oman. Oxy per day to 150,000 barrels per day within the
applying new technology and oil recovery operates Blocks 9 and 27 in northern Oman and next few years. Approximately one billion barrels
expertise to enhance production. the giant Mukhaizna Oil Field in Block 53 in south- of oil are expected to be recovered over the life
central Oman. In 2006, Oxy added exploration of the project.*
Libya is one of the world’s most attractive
Block 54, which is located adjacent to the
international exploration regions. Oxy In June of 2006, Oxy initiated production in
Mukhaizna infrastructure.
geoscientists are conducting a major exploration Block 27, just nine months after the government
program — the largest in the company’s Oxy began operating Block 9, also known as the declared the field commercial and three months
history — to search for new oil and gas fields. Safah Field, in 1984. In 2004 Oxy and the Omani ahead of target. Additional exploration and
In January 2005, Oxy dominated Libya’s first government built new infrastructure to market production wells are being drilled.
post-sanction exploration licensing round, 110 to 120 million cubic feet per day of previously
Oxy is currently pursuing several new exploration
winning nine of 15 exploration blocks up for bid. stranded gas from Block 9.
and development projects in cooperation with
Of these new exploration blocks, Oxy is operator
the Omani government.
and holds a 90-percent working interest in five
onshore areas and was awarded a 35-percent
working interest in four offshore areas. It also
Yemen
holds a 100-percent working interest in four
additional exploration blocks. A massive seismic Oxy is one of the most active companies in
program is underway and Oxy is drilling numerous Yemen with significant interests in both of the
Yemen
exploration wells in Libya. major oil and gas production regions. The
10 14
company holds a 38-percent working interest in
75 20
the giant Masila Block (Block 14) where some of
S-1
the world’s largest oil discoveries were made in
the 1990s. Oxy also holds a 40-percent interest
in the adjacent East Shabwa Block (Block 10).
In 2005, Oxy was awarded a new exploration
area, Block 75, and in 2006, the company
acquired the S-1 Block as a part of its acquisition
of Vintage Petroleum.
Oxy’s massive seismic surveying project is underway in Libya. Oxy is drilling numerous exploration wells in Yemen with potential
The Libya exploration project is the largest in Oxy’s history. to expand operations.
* The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the commission,
to disclose only proved reserves demonstrated by actual production or conclusive formation tests to be economically producible
under existing economic and operating conditions. The commission’s guidelines strictly prohibit using “oil in place” and “recoverable
4 5
reserves” in filings with it.
5. Maximizing Ultimate Recovery
Oxy is a proven leader in cost-effectively increasing production
from mature oil and gas fields and extracting value from
Dolphin Energy Limited is sponsoring a study of Oxy Libya’s Protocol Affairs Manager, Leila Elkial, helps raise staff
Oxy works with the Royal Oman Police,
opportunities overlooked by competitors. Companies and host the coral reefs between Abu Dhabi and Qatar to awareness and understanding of culture and history at the beautifully
The Ministry of Education and Oman TV to
gather data for a conservation plan. preserved Roman ruins of Sabratha on the Mediterranean Sea in Libya.
promote the “Oman Safe Driving Program.”
governments seeking technical collaboration on challenging
projects have found Oxy to be a responsive and innovative partner.
Occidental Petroleum Corporation is committed to being an
Branching Out outstanding and responsible corporate citizen as we strive for
continual improvement in our worldwide Health, Environment
Oxy has earned a reputation as an industry leader in horizontal drilling. Horizontal drilling involves drilling a
well at an incline greater than 75 degrees, to access oil and gas reserves that would be difficult to reach
and Safety (HES) systems and Social Responsibility performance.
with a vertical well. These wells are first drilled vertically to a predetermined depth, and then gradually
curved to reach the target zone.
Social Responsibility Developing Expertise in Our
Horizontal wells are advantageous for numerous reasons: to improve recovery rates by increasing exposure
International Workforce
to thin pay zones; to avoid sensitive environmental areas or surface obstacles; or to drill several wells from
Serving as a good neighbor is crucial to Oxy’s
a single location, particularly for offshore drilling.
core values and an integral part of its management Occidental has an ongoing comprehensive
philosophy. Strong environmental safety and social program to hire and train national employees
programs minimize risk, enhance the company’s for jobs in all professional and operational
This illustration depicts a multilateral horizontal well in Oxy Oman’s Safah Field. These advanced
wells allow Oxy to target thin pay zones in the oil producing Shuaiba reservoir and to produce reputation and improve Oxy’s financial and disciplines. This is critical for emerging countries
concurrently from two intervals using a single wellbore.
operational performance. striving to enhance their economic development
and technical expertise.
Environment and Safety
For example, Oxy Oman’s “Omanization” program
Performance has increased the number of Omani employees
A fundamental element of Occidental’s success is at established operations to 89 percent, up from
its health, environment and safety (HES) protection only five employees in 1984. Omani employees
management system. This system includes using work at all levels of the company, from executive
design procedures, work practices and employee management to entry-level positions. These
training to prevent incidents; correcting and programs have helped transfer technical expertise
improving operating conditions that could have an to the national workforces, and provide excellent
adverse impact on HES; reducing pollutants; local employment opportunities.
improving the efficiency of energy use; and
maintaining an ongoing dialogue with neighboring
communities about HES concerns. Oxy holds an
industry-leading position in maintaining the safety
of employees, assets and the environment.
Oxy Oman’s Sadiq Al-Lawati, Vice President — Health,
Environment and Safety, and Najeeb Al Harthy, Vice President
for B9 and B27 operations.
6
6. Delivering Results
Occidental’s success in the Middle East and around the
world is built on sound business skills, exploration and
development expertise, application of innovative technology
and the acquisition of strategic assets.
Occidental has used these skills to build a
reputation for completing projects on time
and within budget, while simultaneously
maintaining a strong commitment to health,
the environment and safety, and the highest
standards of ethical conduct. Oxy continuously
pursues new opportunities to enhance value
for the countries where it operates, and has the
experience, expertise and drive to deliver results.
Occidental’s success in Qatar helped establish us as one of the
world’s premier companies in enhancing recovery from mature fields
through the application of appropriate technology and advanced
reservoir characterization techniques.
8
