World's Energy

LOS ANGELES, Oct. 8, 2008 (GLOBE NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) announced today the signing of a preliminary agreement with Abu Dhabi National Oil Company (ADNOC) to appraise and develop Jarn Yaphour and Ramhan oil and gas fields in the Emirate of Abu Dhabi. Oxy will operate both fields and hold a 100 percent interest in newly created concessions. "We are pleased to have been chosen to develop these fields in Abu Dhabi," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental. "This is an important step in the implementation of our growth strategy and in our relationship with the Emirate of Abu Dhabi. The development of these two fields provides an exciting opportunity to create value for the people of Abu Dhabi and for our stockholders." The Jarn Yaphour field is located onshore near the capital city of Abu Dhabi. Development activities at the field will commence immediately and first production from the field is expected in 2009. Gross production from the initial development is anticipated to be around 10,000 boepd. The Ramhan discovery, located in very shallow water near the Abu Dhabi refinery, was tested in 1992 and flowed at a combined rate of 1,750 barrels of oil and 14 million cubic feet of gas per day from one well. Appraisal activities will commence immediately and, if technically and commercially successful, production from the Ramhan initial development is also expected to be in the 10,000 boepd range. First production from the field could commence as early as 2011. Total capital investment in both development projects is expected to be in the range of $500 million over the next three to four years. In addition to the initial field developments, this investment will include further field appraisal activities to determine the full upside potential of each area.