LOS ANGELES, April 23, 2004 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) announced today that it has signed an agreement with Colombia's national oil company, Ecopetrol, to extend the term of Occidental's interest in the Cravo Norte Association Contract for the operation of Colombia's second largest oil field at Caño Limón. The contract, which was due to expire in 2008, was amended to extend through the economic life of the field, currently estimated to last at least through 2018. Occidental will remain the operator of the Caño Limón field and Ecopetrol will continue to operate the Caño Limón-Covenas export pipeline.
Under the amended terms of the contract, Occidental will undertake a new 2004-2007 Caño Limón work program consisting of around 40 new development wells, a 3-D seismic survey, expansion of water handling facilities and new power generation facilities. In addition, Occidental has agreed to make an investment in new exploration projects during the same period.
Gross production from Caño Limón is currently averaging approximately 95,000 gross barrels of oil per day. Occidental's net share after partner and royalty interests is approximately 33,000 barrels per day.