Occidental Petroleum 2008 Annual Report Download - page 19

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In 2008, Occidental received approval from the Government of Qatar for the third phase of field development of the ISND field. Drilling
under this phase is expected to continue through 2010, focusing on continued development of the mature reservoirs, while further
delineating and developing the less mature reservoirs.
Occidental’s share of production from ISND, ISSD and Block 12 was approximately 47,000 BOE per day in 2008. Proved reserves for
these properties totaled 150 million BOE as of December 31, 2008.
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Occidental owns contractual interests in three producing blocks in Yemen, including a 38-percent direct-working interest in the Masila
field, which expires in December 2011, a 40.4-percent interest in the East Shabwa field, including an 11.8-percent equity interest in an
unconsolidated entity, and a 75-percent working interest in Block S-1. In addition, Occidental owns a 75-percent working interest in Block 75.
Occidental's share of production from the Yemen properties was 21,000 BOE per day in 2008. Proved reserves for these properties
totaled 28 million BOE as of December 31, 2008.
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In Oman, Occidental is the operator of Block 9 and Block 27, with a 65-percent working interest in each, Block 53, with a 45-percent
working interest, Block 54, with a 70-percent working interest and Block 62, with a 48-percent working interest.
Occidental and its partners signed a 30-year PSC for the Mukhaizna field (Block 53) with the Government of Oman in 2005. In
September 2005, Occidental assumed operations of the Mukhaizna field. The Mukhaizna field, located in Oman’s south central interior, was
discovered in 1975 and was brought into production in 2000. By the end of 2008, Occidental had drilled over 370 new wells and continued
implementation of a major pattern steam flood project. As of year-end 2008, the exit rate of gross daily production was over six times higher
than the production rate in September 2005, reaching over 50,000 BOE per day. Occidental plans to steadily increase production through
continued expansion of the steam flood project.
The term for Block 9 is through December 2015, with a potential 10-year extension. The term for Block 27 is 30 years beginning in
September 2005. Occidental and its partners began production in June 2006.
Occidental and its partners signed a PSC for Block 54 with the Government of Oman in June 2006 with an initial exploration phase
of four years.
Occidental was awarded Block 62 in November 2008 under a 20-year contract. Block 62 is comprised of both development and
exploration opportunities targeting gas and condensate resources.
Occidental's share of production from the Oman properties was approximately 27,000 BOE per day in 2008, and proved reserves
totaled 142 million BOE as of December 31, 2008.
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In 2005, Occidental signed an agreement with the Libyan National Oil Corporation (NOC) which allowed it to re-enter the country and
participate in exploration and production operations in the Sirte Basin, which it left in 1986 pursuant to United States law. This re-entry
agreement allowed Occidental to return to its Libyan operations on generally the same terms in effect when activities were suspended.
As discussed previously, in June 2008, Occidental and its partner signed new agreements with NOC to upgrade its existing contracts
for up to 30 years.
Occidental's share of production during 2008 was approximately 15,000 BOE per day. In the second half of 2008, production was
approximately 8,000 BOE per day as a result of the new agreements. At year-end 2008, proved reserves for Occidental’s Libya assets totaled
28 million BOE.
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In October 2008, Occidental announced the signing of the preliminary agreement with Abu Dhabi National Oil Company to appraise
and develop the Jarn Yaphour and Ramhan oil and gas fields in the Emirate of Abu Dhabi. Occidental would operate both fields and hold a
100-percent interest in the newly created concessions. First production from the Jarn Yaphour field, located onshore, could be as early as
2010. Gross production from the initial development is anticipated to be approximately 10,000 BOE per day. At the Ramhan field, located in
shallow water offshore, gross production also is expected to be approximately 10,000 BOE per day, if initial development is technically and
commercially successful. First production from the Ramhan field could commence as early as 2011.
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
1. Colombia
2. Bolivia
3. Argentina
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