Occidental Petroleum 2002 Annual Report Download - page 96

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75
GAS RESERVES
In billions of cubic feet
Consolidated Subsidiaries
---------------------------------------------------------
Middle East
and Other
United Latin Eastern Other Total
States America Hemisphere(c) Total Interests(b) Worldwide
========================================= ============ ============ ============ ============ ============ ============
PROVED DEVELOPED AND UNDEVELOPED RESERVES
BALANCE AT DECEMBER 31, 1999 1,806 -- 86 1,892 -- 1,892
Revisions of previous estimates 179 -- 44 223 -- 223
Improved recovery 25 -- -- 25 -- 25
Extensions and discoveries 108 -- 4 112 -- 112
Purchases of proved reserves 417 -- -- 417 -- 417
Sales of proved reserves (200) -- -- (200) -- (200)
Production (a) (241) -- (18) (259) -- (259)
----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
BALANCE AT DECEMBER 31, 2000 2,094 -- 116 2,210 -- 2,210
Revisions of previous estimates (53) -- 4 (49) -- (49)
Improved recovery 23 -- -- 23 -- 23
Extensions and discoveries 118 -- 4 122 -- 122
Purchases of proved reserves 4 -- -- 4 -- 4
Sales of proved reserves (1) -- -- (1) -- (1)
Production (a) (223) -- (18) (241) -- (241)
----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
BALANCE AT DECEMBER 31, 2001 1,962 -- 106 2,068 -- 2,068
Revisions of previous estimates (39) -- (15) (54) -- (54)
Improved recovery 39 -- 112 151 -- 151
Extensions and discoveries 57 -- 3 60 -- 60
Purchases of proved reserves 14 -- 45 59 -- 59
Sales of proved reserves (6) -- -- (6) -- (6)
Production (a) (206) -- (23) (229) -- (229)
----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
BALANCE AT DECEMBER 31, 2002 1,821 -- 228 2,049 -- 2,049
========================================= ============ ============ ============ ============ ============ ============
PROVED DEVELOPED RESERVES
December 31, 1999 1,670 -- 61 1,731 -- 1,731
============ ============ ============ ============ ============ ============
December 31, 2000 1,814 -- 84 1,898 -- 1,898
============ ============ ============ ============ ============ ============
December 31, 2001 1,718 -- 89 1,807 -- 1,807
============ ============ ============ ============ ============ ============
DECEMBER 31, 2002 1,630 -- 110 1,740 -- 1,740
========================================= ============ ============ ============ ============ ============ ============
(a) Production excludes 25.3 bcf, 28.0 bcf and 15.0 bcf subject to volumetric
production payments for the years 2002, 2001 and 2000, respectively.
(b) There were no gas reserves associated with equity investees in Russia or
Yemen.
(c) Includes proved reserves from production-sharing contracts in the Middle
East and Other Eastern Hemisphere of 106 bcf in 2002.
76
STANDARDIZED MEASURE, INCLUDING YEAR-TO-YEAR CHANGES THEREIN, OF DISCOUNTED
FUTURE NET CASH FLOWS
For purposes of the following disclosures, estimates were made of
quantities of proved reserves and the periods during which they are expected to
be produced. Future cash flows were computed by applying year-end prices to
Occidental's share of estimated annual future production from proved oil and gas
reserves, net of royalties. Future development and production costs were
computed by applying year-end costs to be incurred in producing and further
developing the proved reserves. Future income tax expenses were computed by
applying, generally, year-end statutory tax rates (adjusted for permanent
differences, tax credits, allowances and foreign income repatriation
considerations) to the estimated net future pre-tax cash flows. The discount was
computed by application of a 10 percent discount factor. The calculations
assumed the continuation of existing economic, operating and contractual
conditions at each of December 31, 2002, 2001 and 2000. However, such arbitrary
assumptions have not necessarily proven to be the case in the past. Other
assumptions of equal validity would give rise to substantially different