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.