Occidental's 2004 Proved Reserve Additions Exceed Production
Occidental Petroleum reports that in 2004 the company's consolidated subsidiaries had proved reserve additions from all sources of 266 million barrels of oil equivalent (BOE) compared to production of 198 million BOE. Occidental incurred $1.79 billion in costs for oil and gas property acquisitions and exploration and development activities. At the end of 2004, Occidental's consolidated reserves-to-production ratio, assuming production remained at the 2004 level, was 12.6 years.
"We continued adding proved oil and gas reserves at a pace well ahead of production, while keeping our costs among the lowest in the industry,'' said Dr. Ray R. Irani, Occidental's Chairman, President and Chief Executive Officer. "As we look ahead in 2005, we expect proved reserve additions to continue to surpass production.''
At year-end 2004, Occidental's worldwide proved reserves, on a consolidated basis, totaled 2.49 billion BOE compared to 2.42 billion BOE at the end of 2003. Proved developed reserves make up 78 percent of Occidental's total proved reserves. Crude oil and condensate account for 80 percent of the company's proved reserves.
The breakdown by category of the 2004 consolidated proved reserve additions shows improved recovery added 120 million BOE (45%), extensions and discoveries added 61 million BOE (23%), revisions to previous estimates added 45 million BOE (17%), and acquisitions added 40 million BOE (15%).
For the three-year period, 2002-2004, Occidental's consolidated reserve additions totaled 874 million BOE, and total production equaled 568 million BOE. Over the three years, Occidental incurred $4.6 billion in costs for property acquisitions and exploration and development activities.
Occidental also had investments in other interests that recorded 2 million BOE of proved reserve additions in 2004, compared to production of 9 million BOE. These investment interests accounted for 43 million BOE of proved reserves at year-end 2004, down from 50 million BOE at the end of 2003.
During 2002-2004, proved reserve additions from the other interests were 26 million BOE, and production totaled 27 million BOE. During this three-year period, the costs incurred for these investment interests for property acquisitions and exploration and development activities totaled $14 million.
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