Occidental Petroleum 2008 Annual Report Download - page 17

Approximately 66 percent of Occidental’s Permian Basin oil production is from fields that actively employ the application of CO 2 flood
technology, an enhanced oil recovery (EOR) technique. This technique involves injecting CO2 into oil reservoirs where it acts as a solvent,
causing the oil to flow more freely into producing wells. These CO2 flood operations make Occidental a world leader in the application of this
technology.
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Occidental's California operations consist of Elk Hills, THUMS, Tidelands and other interests in the Ventura, San Joaquin and
Sacramento basins.
Occidental's interest at Elk Hills includes the Elk Hills oil and gas field in the southern portion of California’s San Joaquin Valley,
which it operates with an approximately 78-percent interest, and other adjacent properties. The Elk Hills field is the largest producer of gas in
California. Oil and gas production in 2008 from the Elk Hills properties was approximately 84,000 BOE per day. During 2008, Occidental
continued to perform infill drilling, field extensions and recompletions identified by advanced reservoir characterization techniques, resulting
in 275 new wells being drilled and 550 wells being worked over. At the end of 2008, the Elk Hills properties had an estimated 491 million
BOE of proved reserves.
Occidental owns interests in California properties in the Ventura, San Joaquin and Sacramento basins, other than Elk Hills. The
combined properties produce oil and gas from more than 50 fields. Oil and gas production from these properties in 2008 was approximately
24,000 BOE per day. At the end of 2008, the combined properties had an estimated 118 million BOE of proved reserves.
THUMS conducts the field operations for an oil production unit offshore Long Beach, California. Tidelands is the contract operator for
an onshore oil production unit in Long Beach, California. Occidental's share of production and reserves from both properties is subject to
contractual arrangements similar to a PSC. For 2008, Occidental's share of production from THUMS and Tidelands was approximately
20,000 BOE per day and proved reserves totaled 99 million BOE at year-end.
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Occidental owns 739,000 acres in a large concentration of gas reserves, production interests and royalty interests in Kansas and
Oklahoma where it drilled 87 company-operated wells in 2008.
Occidental also has over 77,000 net acres in western Colorado, including the properties acquired in 2008 from Plains where it drilled
68 company-operated wells in 2008.
In 2008, Occidental’s Midcontinent and Rockies operations produced approximately 35,000 BOE per day. At December 31, 2008,
proved reserves for these operations totaled 250 million BOE.
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1. Libya
2. Yemen
3. Oman
4. United Arab Emirates
5. Qatar
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Occidental's investment in the Dolphin Project, which was acquired in 2002, consists of two separate economic interests through
which Occidental owns (i) a 24.5-percent undivided interest in the assets and liabilities associated with a Development and Production
Sharing Agreement (DPSA) with the Government of Qatar to develop and produce natural gas and NGLs in Qatar’s North Field for 25 years
from the start of production, with a provision to request a 5-year extension; and (ii) a 24.5-percent interest in the stock of Dolphin Energy
Limited (Dolphin Energy).
Dolphin Energy is the operator under the DPSA and owns and operates a 230-mile-long, 48-inch natural gas pipeline (Dolphin
Pipeline), which transports dry natural gas from Qatar to the UAE. Production of natural gas and NGLs under the DPSA from Qatar's North
Field began during mid-2007 and, since mid-2008, production has been at full capacity of the plant. Occidental’s share of production was
approximately 52,000 BOE per day in 2008. At December 31, 2008, Occidental’s share of proved oil and gas reserves from the Dolphin
Project was 298 million BOE.
The pipeline has a capacity to transport up to 3.2 billion cubic feet (Bcf) of natural gas per day and currently transports approximately 2
Bcf per day. Demand for natural gas in the UAE and Oman has grown and Dolphin Energy’s customers have requested additional gas
supplies. To help fulfill this growing demand, Dolphin Energy will continue to pursue an agreement to secure an additional supply of gas
from Qatar.
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In addition to its participation in the Dolphin Project, Occidental operates three offshore projects in Qatar: Idd El Shargi North Dome
(ISND) and Idd El Shargi South Dome (ISSD), with a 100-percent working interest in each, and Al Rayyan (Block 12), with a 92.5-percent