Occidental Petroleum Announces Permian Basin Resources and EOR Acquisitions

Occidental
Petroleum Corporation (NYSE:OXY) today announced it has acquired
producing and non-producing leasehold acreage in the Permian Basin from
private sellers. Separately, the company acquired interests in several
Permian Basin enhanced oil recovery (EOR) and CO₂ properties,
and related infrastructure.

“These transactions further complement and solidify Occidental’s
dominant position in the Permian Basin,” said President and Chief
Executive Officer Vicki Hollub. “They leverage our existing
infrastructure, utilize our strong balance sheet and create additional
operational synergies.”

The total purchase price for these transactions is approximately $2
billion, which has been funded from existing cash on hand.

Acquisition Highlights

Permian Resources

• The leasehold acquisition includes approximately 35,000 net acres in
  Reeves and Pecos counties, Texas, in the Southern Delaware Basin, in
  areas where Occidental currently operates or has working interests.
• Approximately 7,000 barrels of oil equivalent (BOE) per day of net
  production (72 percent oil) from 68 horizontal wells.
• A minimum of 700 gross estimated horizontal drilling locations
  targeting the Wolfcamp A, Wolfcamp B and Bone Spring, with meaningful
  upside potential through infill drilling and additional intervals.
• Proximity to other key Occidental development areas, such as Barilla
  Draw, allows for cost and infrastructure efficiencies and contiguous
  position enables longer lateral well development.
• Enables efficient development by gaining operatorship and provides
  capital flexibility as a high percentage of the acreage is held by
  production.
• Including this transaction, Occidental’s overall position in the
  leasehold area encompasses nearly 59,000 acres with an aggregate
  acquisition cost, inclusive of value given to current production and
  infrastructure, of approximately $2 billion.

Permian EOR

• Acquired working interests in producing oil and gas CO₂
  floods and related EOR infrastructure, increasing Occidental’s
  ownership in several properties where it is currently the operator or
  an existing working interest partner.
• These properties have current production of approximately 4,000 BOE
  per day (80 percent oil), with estimated net proved developed
  producing reserves of approximately 25 million BOE and total proved
  reserves of approximately 41 million BOE.

About Occidental Petroleum

Occidental
Petroleum Corporation is an international oil and gas exploration
and production company with operations in the United States, Middle East
and Latin America. Headquartered in Houston, Occidental is one of the
largest U.S. oil and gas companies, based on equity market
capitalization. Occidental’s midstream and marketing segment gathers,
processes, transports, stores, purchases and markets hydrocarbons and
other commodities. The company’s wholly owned subsidiary OxyChem
manufactures and markets basic chemicals and vinyls.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and
involve risks and uncertainties that could materially affect expected
results of operations, liquidity, cash flows and business prospects.
Actual results may differ from anticipated results, sometimes
materially, and reported results should not be considered an indication
of future performance. Factors that could cause results to differ
include, but are not limited to: global commodity pricing fluctuations;
supply and demand considerations for Occidental’s products;
higher-than-expected costs; the regulatory approval environment;
reorganization or restructuring of Occidental’s operations; not
successfully completing, or any material delay of, field developments,
expansion projects, capital expenditures, efficiency projects,
acquisitions or dispositions; uncertainties about the estimated
quantities of oil and natural gas reserves; lower-than-expected
production from development projects or acquisitions; exploration risks;
general economic slowdowns domestically or internationally; political
conditions and events; liability under environmental regulations
including remedial actions; litigation; disruption or interruption of
production or manufacturing or facility damage due to accidents,
chemical releases, labor unrest, weather, natural disasters, cyber
attacks or insurgent activity; failure of risk management; changes in
law or regulations; or changes in tax rates. Words such as “estimate,”
“project,” “predict,” “will,” “would,” “should,” “could,” “may,”
“might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,”
“goal,” “target,” “objective,” “likely” or similar expressions that
convey the prospective nature of events or outcomes generally indicate
forward-looking statements. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. 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. Material risks that may affect
Occidental’s results of operations and financial position appear in Part
I, Item 1A “Risk Factors” of the 2015 Form 10-K. Occidental posts or
provides links to important information on its website at www.oxy.com.

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