LOS ANGELES, April 27, 2009 (GLOBE NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development Company (Mubadala), through its business unit Mubadala Oil & Gas, announced today that they have signed a Development and Production Sharing Agreement (DPSA) with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field. Under this agreement, a Joint Operating Company will be formed to serve as operator for the project under the DPSA.
Oxy will hold a 48-percent interest in the DPSA, with Mubadala holding a 32-percent interest and a subsidiary of NOGA holding the remaining 20 percent.
"We are pleased to expand upon our existing relationship with Abu Dhabi and look forward to working with Bahrain on this exciting project," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental. "Signing this DPSA is another important step in the implementation of our growth strategy in the Middle East, and the further development of the Bahrain Field will create significant value for the people of Bahrain and for our shareholders."
"We are delighted with the successful conclusion of our joint negotiations with NOGA," said Khaldoon Khalifa Al Mubarak, Chief Executive Officer and Managing Director, Mubadala Development Company. "Our collaboration with Oxy is wholly in line with Mubadala's strategy of developing a top in class international oil and gas unit focused on exploration and development projects in the Middle East, North Africa, Central and South East Asia."
Development activities will commence immediately. Oil production from the field is expected to more than double to approximately 75,000 barrels per day within five years and grow to a peak level of more than 100,000 barrels per day thereafter. Gas production capacity is expected to grow from the current level of 1.7 billion cubic feet per day to over 2.5 billion cubic feet per day under the Field development plan. Oxy's net share of production is expected to be approximately 28,000 barrels of oil equivalent per day (BOEPD) in 2010 growing to 56,000 BOEPD within five years. Mubadala's net share of production is expected to be approximately 18,500 BOEPD and 37,000 BOEPD for the same time periods. Net reserve additions over the life of the project for Oxy are estimated to be 450 million barrels of oil equivalent. Mubadala's net reserve additions are estimated to be 300 million barrels of oil equivalent over the life of the project.
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.
About Mubadala Development Company
Mubadala Development Company (Mubadala) is a business development and investment company that acts as a catalyst to realize Abu Dhabi's ambition to diversify and transform its economy, develop a new generation of business leaders and build a prosperous future for its people. By harnessing expertise and resources, Mubadala generates sustainable financial returns and builds businesses, clusters of expertise and even whole new industries. Bringing together and managing a diverse portfolio of opportunities in areas such as energy, healthcare, technology, aerospace and real estate, Mubadala invests for the long term as an active and diligent partner.
Mubadala Oil & Gas is a business unit within Mubadala that pursues acquisition, exploration and development opportunities in the Middle East, North and West Africa, and Central and Southeast Asia. Its portfolio of assets include Pearl Energy, a wholly-owned subsidiary of Mubadala that operates in four Southeast Asian countries, and exploration and production activities in Algeria, Libya and Oman. Current net working interest production from its participating interests in Dolphin Energy, the Mukhaizna field and Pearl Energy is approximately 266,000 barrels of oil equivalent per day (BOEPD).
Mubadala's sole shareholder is the Government of the Emirate of Abu Dhabi. For more information about Mubadala, its partnerships and activities, please visit www.mubadala.ae.
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: not successfully completing (or any material delay in) field development or capital expenditures; higher-than-expected costs; changes in laws or regulations; political risk; exploration risks, such as drilling of unsuccessful wells; global commodity pricing fluctuations and supply/demand considerations for oil and gas; and operational interruptions. You should not place undue reliance on these forward-looking statements which speak only as of the date of this filing. 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 Occidental's Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.