- 2014 year-end proved reserves of 2.82
billion BOE, an increase of nearly 3 percent
- 2014 domestic reserve replacement ratio
of 266 percent and total company replacement of 174 percent
- Three-year reserve replacement ratio of
169 percent
Occidental Petroleum Corporation (NYSE:OXY) announced today that
at year-end 2014, the company's preliminary worldwide proved
reserves totaled 2.82 billion barrels of oil equivalent (BOE)
compared to 2.74 billion BOE at the end of 2013, restated to
exclude California Resources Corporation. In 2014, the company had
proved reserve additions from all sources of 380 million BOE,
compared to production of 218 million BOE, for a production
replacement ratio of 174 percent.
The preliminary domestic proved reserves totaled 1.78 billion
BOE compared to 1.67 billion BOE at the end of 2013. In 2014, the
domestic operations had proved reserve additions from all sources
of 308 million BOE, compared to production of 116 million BOE, for
a production replacement ratio of 266 percent.
"We are pleased to have replaced 174 percent of our 2014
production largely through improved recovery and extensions and
discoveries. Over the last three years, we replaced 169 percent of
our production. Our 2014 program resulted in apparent finding and
development costs of $16.89 per BOE. For the last three-year
period, our finding and development costs averaged about $18.66 per
BOE including revisions," said Stephen I. Chazen, President and
Chief Executive Officer.
As of December 31, 2014, 63 percent of the company's proved
reserves consisted of oil, 13 percent of NGL and 24 percent of gas.
Of the total proved reserves, approximately 60 percent is in the
United States and 40 percent in international locations.
Approximately 70 percent of the proved reserves are developed and
30 percent are undeveloped. Total company revisions were negative
58 million BOE, which included 54 million from the write-down of
Bahrain. Total company proved additions, excluding revisions, were
438 million BOE, mostly coming from improved recovery. The proved
undeveloped reserves increased by 284 million BOE due to improved
recovery mainly in Permian Resources. These additions were offset
by transfers of 315 million BOE to proved developed, with the Al
Hosn Gas Project transfer accounting for 68 percent of the
total.
About Occidental
Petroleum
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East/North Africa and Latin America regions.
Headquartered in Houston, Occidental is one of the largest U.S. oil
and gas companies, based on equity market capitalization.
Occidental’s midstream and marketing segment gathers, processes,
transports, stores, purchases and markets hydrocarbons and other
commodities in support of Occidental’s businesses. The company’s
wholly owned subsidiary, OxyChem manufactures and markets
chlor-alkali products and vinyls.
Forward-Looking
Statements
Portions of this press release contain forward-looking
statements and involve risks and uncertainties that could
materially affect expected results of operations, liquidity, cash
flows and business prospects. Actual results may differ from
anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance.
Factors that could cause results to differ include, but are not
limited to: global commodity pricing fluctuations; supply and
demand considerations for Occidental’s products;
higher-than-expected costs; the regulatory approval environment;
reorganization or restructuring of Occidental’s operations; not
successfully completing, or any material delay of, field
developments, expansion projects, capital expenditures, efficiency
projects, acquisitions or dispositions; lower-than-expected
production from development projects or acquisitions; exploration
risks; general economic slowdowns domestically or internationally;
political conditions and events; liability under environmental
regulations including remedial actions; litigation; disruption or
interruption of production or manufacturing or facility damage due
to accidents, chemical releases, labor unrest, weather, natural
disasters, cyber attacks or insurgent activity; failure of risk
management; changes in law or regulations; or changes in tax rates.
Words such as “preliminary,” “estimate,” “project,” “predict,”
“will,” “would,” “should,” “could,” “may,” “might,” “anticipate,”
“plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,”
“objective,” “likely” or similar expressions that convey the
prospective nature of events or outcomes generally indicate
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. Unless legally required, Occidental does not
undertake any obligation to update any forward-looking statements,
as a result of new information, future events or otherwise.
Material risks that may affect Occidental’s results of operations
and financial position appear in Part I, Item 1A “Risk Factors” of
the 2013 Form 10-K. Occidental posts or provides links to important
information on its website at www.oxy.com.
Attachment 1
OIL AND GAS
PRELIMINARY RESERVES
The following tables set forth Occidental's net
interests in quantities of proved developed and undeveloped oil
(including condensate), NGLs, natural gas and changes in such
quantities. Reserves are stated net of applicable royalties.
Estimated reserves include Occidental's economic interests under
production-sharing contracts (PSCs) and other similar economic
arrangements.
Attachment 2 OIL AND GAS
PRELIMINARY RESERVES OIL RESERVES In millions of
barrels (MMbbl)
United Latin Middle East/
States America North Africa
Total PROVED DEVELOPED AND UNDEVELOPED RESERVES
Balance at December 31, 2011 1,019 96 386 1,501
Revisions of previous estimates (25 ) 4 (3 ) (24 ) Improved
recovery 81 7 30 118 Extensions and discoveries 3 - 27 30 Purchases
of proved reserves 52 - - 52 Production (61 ) (11 )
(67 ) (139 )
Balance at December 31, 2012
1,069 96 373 1,538 Revisions of previous estimates (36 ) (5 ) 12
(29 ) Improved recovery 137 7 60 204 Extensions and discoveries 4 -
14 18 Purchases of proved reserves 25 - - 25 Sales of proved
reserves (4 ) - - (4 ) Production (64 ) (10 )
(65 ) (139 )
Balance at December 31, 2013
1,131 88 394 1,613 Revisions of
previous estimates
(54 ) 6 40 (8
) Improved recovery
224 9 32 265
Extensions and discoveries
15 - 2 17
Purchases of proved reserves
33 - - 33
Sales of proved reserves
(9 ) - -
(9 ) Production
(67 )
(11 ) (63 ) (141
) Balance at December 31, 2014 1,273
92 405
1,770 Proved Developed Reserves
December 31, 2011 780 69 317 1,166 December 31, 2012 803 82 295
1,180 December 31, 2013 822 76 281 1,179
December 31, 2014
819 86 316 1,221
Attachment 3 OIL AND GAS PRELIMINARY RESERVES
NGL RESERVES In millions of barrels (MMbbl)
United Latin Middle East/ States
America North Africa Total PROVED DEVELOPED
AND UNDEVELOPED RESERVES Balance at December 31, 2011
158 - 55 213 Revisions of previous estimates 15 - - 15 Improved
recovery 3 - - 3 Extensions and discoveries - - 64 64 Purchases of
proved reserves 1 - - 1 Production (21 ) -
(3 ) (24 )
Balance at December 31, 2012 156 -
116 272 Revisions of previous estimates 53 - (1 ) 52 Improved
recovery 9 - - 9 Extensions and discoveries - - 22 22 Purchases of
proved reserves 7 - - 7 Sales of proved reserves - - - - Production
(21 ) - (3 ) (24 )
Balance at
December 31, 2013 204 - 134 338
Revisions of previous estimates
6 - 8
14 Improved recovery
37 - - 37
Extensions and discoveries
2 - - 2
Purchases of proved reserves
3 - - 3
Sales of proved reserves
(10 ) - -
(10 ) Production
(20 )
- (2 ) (22
) Balance at December 31, 2014 222
- 140
362 Proved Developed Reserves December
31, 2011 123 - 55 178 December 31, 2012 124 - 53 177 December 31,
2013 151 - 51 202
December 31, 2014 147 -
109 256 Attachment 4
OIL AND GAS PRELIMINARY RESERVES GAS
RESERVES In billions of cubic feet (Bcf)
United
Latin Middle East/ States
America North Africa Total PROVED
DEVELOPED AND UNDEVELOPED RESERVES Balance at December 31,
2011 2,449 33 1,925 4,407 Revisions of previous estimates (581
) - 62 (519 ) Improved recovery 207 11 34 252 Extensions and
discoveries 7 - 784 791 Purchases of proved reserves 80 - - 80
Production (207 ) (5 ) (165 ) (377 )
Balance at December 31, 2012 1,955 39 2,640 4,634 Revisions
of previous estimates (46 ) (11 ) (43 ) (100 ) Improved recovery
251 1 16 268 Extensions and discoveries 13 - 232 245 Purchases of
proved reserves 34 - - 34 Sales of proved reserves (2 ) - - (2 )
Production (193 ) (5 ) (158 ) (356 )
Balance at December 31, 2013 2,012 24
2,687 4,723 Revisions of previous estimates
(111 ) 3 (273 ) (381
) Improved recovery
284 4 25 313
Extensions and discoveries
27 - 101 128
Purchases of proved reserves
46 - - 46
Sales of proved reserves
(371 ) - -
(371 ) Production
(173 )
(4 ) (154 ) (331
) Balance at December 31, 2014 1,714
27 2,386
4,127 Proved Developed Reserves
December 31, 2011 1,723 32 1,555 3,310 December 31, 2012 1,454 36
1,816 3,306 December 31, 2013 1,495 23 1,684 3,202
December 31,
2014 1,128 26 1,915 3,069
Attachment 5 OIL AND GAS PRELIMINARY
RESERVES TOTAL RESERVES In millions of BOE
(MMBOE) (a)
United Latin Middle East/
States America North Africa
Total PROVED DEVELOPED AND UNDEVELOPED RESERVES
Balance at December 31, 2011 1,585 101 762 2,448 Revisions
of previous estimates (107 ) 4 7 (96 ) Improved recovery 119 9 36
164 Extensions and discoveries 4 - 222 226 Purchases of proved
reserves 66 - - 66 Production (116 ) (12 ) (98
) (226 )
Balance at December 31, 2012 1,551 102 929
2,582 Revisions of previous estimates 10 (7 ) 4 7 Improved recovery
188 8 63 259 Extensions and discoveries 6 - 74 80 Purchases of
proved reserves 37 - - 37 Sales of proved reserves (5 ) - - (5 )
Production (117 ) (11 ) (94 ) (222 )
Balance at December 31, 2013 1,670 92 976 2,738 Revisions of
previous estimates (67 ) 6 3 (58 ) Improved recovery 310 9 35 354
Extensions and discoveries 22 - 19 41 Purchases of proved reserves
43 - - 43 Sales of proved reserves (81 ) - - (81 ) Production
(116 ) (11 ) (91 ) (218 )
Balance at
December 31, 2014 1,781 96
942 2,819
Proved Developed
Reserves December 31, 2011 1,190 74 631 1,895 December 31, 2012
1,169 88 651 1,908 December 31, 2013 1,222 80 613 1,915 December
31, 2014 1,154 90 744 1,988 (a) Natural gas volumes have
been converted to barrels of oil equivalent (BOE) based on energy
content of six thousand cubic feet (Mcf) of gas to one barrel of
oil.
Attachment 6
PRELIMINARY COSTS INCURRED ($ Millions) Costs
incurred in oil and gas property acquisition, exploration and
development activities, whether capitalized or expensed, were as
follows:
United Latin Middle
East/ States America North Africa
Total For the Year Ended December 31, 2014 Property
acquisition costs Proved properties
$ 771 $
- $ - $ 771 Unproved properties
842 - - 842 Exploration costs
379 4 180 563 Development costs
3,665 305 2,138
6,108 Costs Incurred $
5,657 $ 309 $
2,318 $ 8,284 For the
Year Ended December 31, 2013 Property acquisition costs Proved
properties $ 343 $ - $ - $ 343 Unproved properties 151 - - 151
Exploration costs 293 11 79 383 Development costs 2,659
329 2,117 5,105
Costs Incurred $ 3,446 $ 340 $ 2,196 $
5,982
For the Year Ended December 31, 2012
Property acquisition costs Proved properties $ 1,333 $ - $ 14 $
1,347 Unproved properties 573 - - 573 Exploration costs 379 1 114
494 Development costs 3,271 304
2,025 5,600
Costs Incurred $ 5,556
$ 305 $ 2,153 $ 8,014
Attachment 7 PRELIMINARY MULTI-YEAR
DATA WORLDWIDE 2012 2013
2014 3-Yr Average Reserves Replacement
(Million BOE) Revisions (96 ) 7
(58 ) (49 ) Improved
recovery 164 259
354 259 Extensions and discoveries
226 80
41 116
Organic without revisions (A) 390 339
395 375 Organic with
revisions (B) 294 346
337 326 Purchases 66
37
43 49 Total
reserve additions (C) 360 383
380 375 Production (D) 226 222
218 222
Costs Incurred ($ Millions)
Acquisitions 1,920 494
1,613 1,342 Exploration costs 494 383
563 480 Development costs 5,600 5,105
6,108 5,604 Organic (E)
6,094 5,488
6,671
6,084 Total costs incurred (F) 8,014
5,982
8,284 7,426
Finding & Development Costs per BOE Organic
without revisions (E) / (A) $ 15.63 $ 16.19
$ 16.89 $
16.22 Organic with revisions (E) / (B) $ 20.73 $ 15.86
$
19.80 $ 18.66 All-in (F) / (C) $ 22.26 $ 15.62
$
21.80 $ 19.80
Reserve Replacement Ratio
Organic without revisions (A) / (D) 173 % 153 %
181 %
169 % Organic with revisions (B) / (D) 130 % 156 %
155
% 147 % All-in (C) / (D) 159 % 173 %
174 % 169 %
UNITED STATES
2012 2013
2014 3-Yr Average
Reserves Replacement
(Million BOE) Revisions (107 ) 10
(67 ) (55 )
Improved recovery 119 188
310 206 Extensions and discoveries
4 6
22 11
Organic without revisions (A) 123 194
332 217 Organic with
revisions (B) 16 204
265 162 Purchases 66
37
43 49 Total
reserve additions (C) 82 241
308 211 Production (D) 116 117
116 116
Costs Incurred ($ Millions)
Acquisitions 1,906 494
1,613 1,338 Exploration costs 379 293
379 350 Development costs 3,271 2,659
3,665 3,198 Organic (E)
3,650 2,952
4,044
3,548 Total costs incurred (F) 5,556
3,446
5,657 4,886
Finding & Development Costs per BOE Organic
without revisions (E) / (A) $ 29.67 $ 15.22
$ 12.18 $
16.35 Organic with revisions (E) / (B) $ 228.13 $ 14.47
$
15.26 $ 21.90 All-in (F) / (C) $ 67.76 $ 14.30
$
18.37 $ 23.16
Reserve Replacement Ratio
Organic without revisions (A) / (D) 106 % 166 %
286 %
187 % Organic with revisions (B) / (D) 14 % 174 %
228
% 140 % All-in (C) / (D) 71 % 206 %
266 % 182
%
Occidental Petroleum CorporationMedia:Melissa E.
Schoeb713-366-5615melissa_schoeb@oxy.comorInvestors:Christopher M.
Degner212-603-8111christopher_degner@oxy.comOn the web:
www.oxy.com
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