LOS ANGELES, April 4, 2006 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) announced today it was awarded a new production sharing contract area, Block 54, in southeastern Oman immediately adjacent to Block 53 where Occidental operates the giant Mukhaizna Field. Occidental will operate Block 54 and hold a 70 percent interest. The Block 54 contract area is approximately 5,620 square kilometers.
"We are very pleased to have this opportunity to further build our position in Oman," said Dr. Ray R. Irani, Chairman, President and Chief Executive Officer. "We believe the block has excellent exploration potential and, due to the close proximity to our existing infrastructure, could lead to significant operational synergies."
Mubadala and Mitsui will join Occidental as partners in Block 54, each holding a 15 percent interest. Mubadala is the investment and development company wholly owned by the Government of the Emirate of Abu Dhabi, and will participate through Liwa Energy Ltd., its oil and gas subsidiary. Mitsui will participate through its Mitsui E&P Middle East B.V. subsidiary.
Occidental has been active in Oman since 1979 and currently has production operations in Blocks 9 and 27 in the northwestern region of the country, as well as in the Mukhaizna field, one of the largest oil fields in Oman.
Forward-Looking Statements
Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to 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; changes in tax rates and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition or disposition. 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. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through 1-888-699-7383 or at www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.