LOS ANGELES, Feb. 13, 2009 (GLOBE NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) announced today that at year-end 2008, the company's preliminary worldwide proved reserves, on a consolidated basis, totaled 2.98 billion barrels of oil equivalent (BOE) compared to 2.87 billion BOE at the end of 2007. In 2008, the company's consolidated subsidiaries had proved reserve additions from all sources, before the effect of price-related revisions, of 463 million BOE, compared to production of 221 million BOE, for a production replacement ratio of 210 percent. At the end of 2008, Occidental's consolidated reserves-to-production ratio, assuming production remained at the 2008 level, was 13.5 years.
Excluding purchases of proved reserves and the effect of price revisions, the company added 253 million BOE of proved reserves on a consolidated basis, of which improved recovery provided 98 percent and extensions and discoveries provided 9 percent, partially offset by non-price-related negative revisions of 7 percent.
These additions were partially offset by negative revisions of 127 million BOE that were attributable to the difference between prices of oil and gas at year-end 2007 and year-end 2008. Negative domestic price revisions were partially offset by positive price revisions in the Middle East/North Africa, as a result of the impact of Production Sharing Contracts.
Occidental's costs for exploration and development activities were $4.4 billion. Additionally, Occidental incurred $3.5 billion in property acquisition costs. All of the acquisitions were domestic, mainly in the Rocky Mountains and the Permian Basin.
In 2008, proved developed reserves were 74 percent of total proved reserves. For the three-year period 2006 through 2008, Occidental's consolidated proved reserve additions totaled 1.1 billion BOE, and total production equaled 630 million BOE, for a reserve replacement ratio of 173 percent.
2008 RECAP
Reserve Costs
Additions Incurred
(Million BOE) ($ Millions)
============= ============
Additions 271 $4,441
Less: Physical Revisions (18)
---
Net Additions 253
Purchase of Proved Reserves 210 3,541
--- ------
Additions from All Sources 463 $7,982
=== ======
Production (221)
Sales of Proved Reserves (3)
Price Revisions (127)
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.
OIL AND GAS PRELIMINARY RESERVES
(Consolidated Subsidiaries)
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/
States America No. Africa Total
----------- ----------- ----------- Million
Oil Gas Oil Gas Oil Gas BOE (b)
===================== ===== ===== ===== ===== ===== ===== =======
PROVED DEVELOPED AND
UNDEVELOPED RESERVES
Balance at
December 31, 2005 1,616 2,323 50 -- 296 1,051 2,524
Revisions of
previous estimates (28) (135) 10 45 39 59 16
Improved recovery 69 120 33 -- 14 7 137
Extensions and
discoveries 3 58 7 -- 14 -- 34
Purchases of proved
reserves 98 274 152 161 4 -- 326
Sales of proved
reserves (4) (2) -- -- -- -- (4)
Production (94) (214) (26) (12) (40) (11) (200)
--------------------- ----- ----- ----- ----- ----- ----- -----
Balance at
December 31, 2006 1,660 2,424 226 194 327 1,106 2,833
Revisions of
previous estimates (20) 35 (17) 5 (43) (130) (95)
Improved recovery 114 406 17 5 52 6 253
Extensions and
discoveries 1 5 15 19 2 11 24
Purchases of proved
reserves 47 18 -- -- 10 -- 60
Sales of proved
reserves -- -- -- -- -- -- --
Production (95) (216) (27) (15) (43) (30) (209)
--------------------- ----- ----- ----- ----- ----- ----- -----
Balance at
December 31, 2007 1,707 2,672 214 208 305 963 2,866
Revisions of
previous estimates (243) (490) (6) (26) 135 328 (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) (28) (16) (46) (76) (221)
--------------------- ----- ----- ----- ----- ----- ----- -----
Balance at
December 31, 2008 1,547 3,153 224 212 440 1,236 2,978
===================== ===== ===== ===== ===== ===== ===== =====
OIL AND GAS PRELIMINARY RESERVES (continued)
(Consolidated Subsidiaries)
United Latin Middle East/
States America No. Africa Total
----------- ----------- ----------- Million
Oil Gas Oil Gas Oil Gas BOE (b)
===================== ===== ===== ===== ===== ===== ===== =======
PROVED DEVELOPED
RESERVES (a)
December 31, 2005 1,319 1,833 44 -- 174 73 1,855
===================== ===== ===== ===== ===== ===== ===== =====
December 31, 2006 1,382 1,940 140 137 249 560 2,211
===================== ===== ===== ===== ===== ===== ===== =====
December 31, 2007 1,406 1,997 120 140 262 932 2,300
===================== ===== ===== ===== ===== ===== ===== =====
December 31, 2008 1,209 1,866 124 142 342 1,206 2,211
===================== ===== ===== ===== ===== ===== ===== =====
(a) Approximately one percent of the proved developed oil reserves
and approximately three percent of the proved developed gas reserves
at December 31, 2008 are non-producing.
(b) Excludes other interests, which include the minority interest in
a Colombian subsidiary, partially offset by Occidental's share of
reserves from an equity investee in Yemen. Other interests have
total proved reserves of (1) million BOE and proved developed
reserves of (2) million BOE at December 31, 2008.
PRELIMINARY COSTS INCURRED
(Consolidated Subsidiaries)
Occidental's 2008, 2007 and 2006 costs incurred in oil and gas
property acquisition, exploration and development activities, whether
capitalized or expensed, were as follows:
United Latin Middle East/
States America No. Africa Total (b)
===================== =========== =========== =========== =========
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
====================== ====== ====== ====== ======
FOR THE YEAR ENDED
DECEMBER 31, 2006
Property Acquisition
Costs (a)
Proved Properties $2,083 $2,408 $ 397 $4,888
Unproved Properties 377 655 110 1,142
Exploration Costs 39 61 213 313
Development Costs 1,330 320 792 2,442
------ ------ ------ ------
Costs Incurred $3,829 $3,444 $1,512 $8,785
====================== ====== ====== ====== ======
(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.
(b) Excludes costs incurred for other interests totaling $4 million
in 2008.
PRELIMINARY 5-YEAR DATA
CONSOLIDATED SUBSIDIARIES
Reserve Costs
Additions Production Incurred
(Million BOE) (Million BOE) ($ Millions)
========== ============= ============= ============
2004 241 166 1,662
2005 370 171 4,185
2006 513 200 8,785*
2007 242 209 4,200
2008 336 221 7,982
3-Year
Average 363 210 6,990
5-Year
Average 340 193 5,363
Reserves Replacement
(Million BOE)
Improved Extensions
Revisions Recovery Discoveries Acquisitions Total
========= ========= ========== =========== ============ =====
2004 50 110 41 40 241
2005 (15) 129 117 139 370
2006 16 137 34 326 513
2007 (95) 253 24 60 242
2008 (145) 247 24 210 336
3-Year
Average (75) 212 27 199 363
5-Year
Average (38) 175 48 155 340
Costs Incurred
($ Millions)
Exploration Development
Acquisitions Costs Costs Total
========== ============ ============ ============ =====
2004 166 132 1,364 1,662
2005 2,166 232 1,787 4,185
2006 6,030 313 2,442 8,785*
2007 1,045 331 2,824 4,200
2008 3,541 341 4,100 7,982
3-Year
Average 3,539 328 3,122 6,990
5-Year
Average 2,590 270 2,503 5,363
*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.