LOS ANGELES, Feb. 17, 1999 (PRIMEZONE) -- Occidental Petroleum Corporation today announced that it replaced 378 percent of 1998 worldwide oil and gas production of 160 million barrels on an equivalent barrel basis, including purchases but excluding sales or dispositions. At the end of 1998 the oil and natural gas reserve base was 1.42 billion equivalent barrels compared with 1.31 billion at the end of 1997.
Worldwide oil reserve additions were 453 million barrels, offsetting production of 117 million barrels for a reserve replacement ratio of 387 percent. Worldwide natural gas reserve additions were 905 billion cubic feet, replacing production of 256 billion cubic feet for a reserve replacement ratio of 354 percent.
Included in the reserve additions were 307 million barrels of oil and 708 billion cubic feet of gas attributable to the purchase of the Elk Hills field in California.
In announcing the increase, Dr. Ray R. Irani, chairman and chief executive officer said, "1998 was an important year for our oil and gas division as we took over operation of the Elk Hills field and initiated programs to improve operating margins throughout our producing operations. We are starting 1999 with the highest volume of oil and gas reserves in more than a decade, and a portfolio of high quality assets."
Occidental replaced 1,114 percent of domestic oil production of 29 million barrels and 359 percent of domestic gas production of 224 billion cubic feet, primarily through the purchase of the Elk Hills oil and gas field. Internationally, Occidental replaced 148 percent of oil production of 88 million barrels and 316 percent of gas production of 32 billion cubic feet. International additions occurred in Colombia, Oman, Qatar, Bangladesh and Yemen.
The foregoing replacement percentage summary does not reflect the sale or disposition of approximately 330 million oil equivalent barrels of proved reserves during 1998.