Occidental Petroleum to Develop Oil and Gas Fields in Abu Dhabi

Occidental Petroleum has signed a preliminary agreement with the Abu Dhabi National Oil Company to appraise and develop the Jarn Yaphour and Ramhan oil and gas fields in the emirate of Abu Dhabi. Oxy will operate both fields and hold a 100% interest in the newly created concessions.

The Jarn Yaphour field is located onshore near the capital city of Abu Dhabi. Development activities at the field will commence immediately and first production from the field is expected in 2009. Gross production from the initial development is anticipated to be around 10,000 barrels of oil equivalent per day (boepd).

The Ramhan discovery, located in very shallow water near the Abu Dhabi refinery, was tested in 1992 and flowed at a combined rate of 1,750 barrels of oil and 14 million cubic feet of gas per day from one well.

Appraisal activities will commence immediately and, if technically and commercially successful, production from the Ramhan initial development is also expected to be in the 10,000boepd range. First production from the field could commence as early as 2011.

Total capital investment in both development projects is expected to be in the range of $500 million over the next three to four years. In addition to the initial field developments, this investment will include further field appraisal activities to determine the full upside potential of each area.