Occidental Petroleum 2014 Annual Report Download - page 140

Occidental Petroleum Corporation
January 30, 2015
Page 8
Occidental has informed us that they are not aware of any legal, regulatory, political, environmental or economic obstacles
that currently are expected to materially impact their ability to recover the estimated proved reserves for the properties reviewed by
us.
Data Reviewed in Conducting the Third Party Reserves Process Review
Occidental has informed us that they have furnished or otherwise made available to us all of the material accounts, records,
geological and engineering data, and reports and other data required for this review. In conducting our process review of
Occidental’s estimates of proved reserves and forecasts of future production and income, we have reviewed data used by
Occidental with respect to property interests owned or otherwise held, production and well tests from examined wells, normal direct
costs of operating the wells or leases, other costs such as transportation and processing fees, ad valorem and production taxes,
recompletion and development costs, development plans, product prices based on the SEC regulations, adjustments or
differentials to product prices, geological structural and isochore maps, well logs, core analyses, and pressure measurements.
Ryder Scott reviewed such factual data for its reasonableness; however, we have not conducted an independent verification of the
data utilized by Occidental. We consider the factual data utilized by Occidental to be appropriate and sufficient for the purpose of
our review of the methods and analytical procedures utilized by the engineering and geological staff of Occidental for estimating the
proved reserves volumes and preparing the economic evaluations.
Reserves Process Review Opinion
We found no bias in the utilization and analysis of data in proved reserves estimates for these properties. Furthermore, we
found the estimation process incorporated all pertinent data, utilized a thorough and detailed analytical approach and was supported
by a well documented audit trail.
We consider the assumptions, data, methods and analytical procedures used by Occidental and as reviewed by us
appropriate for the purpose thereof, and we have used all such methods and procedures that we consider necessary and
appropriate under the circumstances to render the conclusions set forth herein.
Based on our review, including the data, technical processes and interpretations presented by Occidental, it is our opinion
that the overall procedures and methodologies utilized by Occidental in estimating the proved reserves volumes, documenting the
changes in reserves from prior estimates, preparing the economic evaluations and determining the reserves classifications for the
reviewed properties comply with the SEC regulations as of December 31, 2014. Ryder Scott has not been engaged to render an
opinion as to the reasonableness of reserves quantities reported by Occidental.
Standards of Independence and Professional Qualification
Ryder Scott is an employee-owned independent petroleum engineering consulting firm. We do not serve as officers or
directors of any privately-owned or publicly-traded oil and gas company and are separate and independent from the operating and
investment decision-making process of our clients. No single client or job represents a material portion of our annual revenue.
These factors allow us to maintain our independence and objectivity in the performance of our services.
Ryder Scott requires that staff engineers and geoscientists receive professional accreditation in the form of a registered or
certified professional engineer’s license or a registered or certified professional geoscientist’s license, or the equivalent thereof,
from an appropriate governmental authority or a recognized self-regulating professional organization.
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