Occidental Replaces 191% of 2005 Production

Occidental Petroleum Corporation (NYSE: OXY) announced that in 2005 the company's consolidated subsidiaries had proved reserve additions from all sources of 380 million barrels of oil equivalent (BOE) compared to production of 199 million BOE, for a production replacement rate of 191 percent. Occidental incurred $4.37 billion in costs for oil and gas property acquisitions and exploration and development activities. At the end of 2005, Occidental's consolidated reserves-to-production ratio, assuming production remained at the 2005 level, was 13.4 years.

At year-end 2005, Occidental's worldwide proved reserves, on a consolidated basis, totaled 2.66 billion BOE compared to 2.49 billion BOE at the end of 2004. Following the closing of the acquisition of Vintage Petroleum in January 2006, consolidated pro-forma proved reserves, excluding 72 million BOE of Vintage reserves held for sale, were 3.01 billion BOE.

The breakdown by category of the 2005 consolidated proved reserve additions shows improved recovery added 139 million BOE (37%), extensions and discoveries added 123 million BOE (32%), revisions to previous estimates reduced 21 million BOE (-6%), and acquisitions added 139 million BOE (37%).

For the three-year period, 2003-2005, Occidental's consolidated reserve additions totaled 997 million BOE, and total production equaled 587 million BOE, for a reserve replacement rate of 170 percent. Over the three years, Occidental incurred $7.73 billion in costs for property acquisitions and exploration and development activities.

Occidental also had investments in other interests that recorded 10 million BOE of proved reserve additions in 2005 compared to production of 8 million BOE. These investment interests accounted for 45 million BOE of proved reserves at year-end 2005, compared to 43 million BOE at the end of 2004.

During 2003-2005, proved reserve additions from the other interests were 30 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 $20 million.


 OIL AND GAS RESERVES
 The following table sets forth Occidental's net interests in 
 quantities of proved developed and undeveloped reserves of crude oil,
 condensate and natural gas, and changes in such quantities.  Crude 
 oil reserves (in millions of barrels) include condensate.  Natural 
 gas volumes (in billion cubic feet) have been converted to barrels 
 of oil equivalent (BOE) based on energy content of 6,000 cubic feet
 of gas to one barrel of oil.

                                     Consolidated         Other      
                                     Subsidiaries       Interests    
                                  ----------------- -----------------
 (million BOE)                      Oil   Gas   BOE   Oil   Gas   BOE
 ===============================  ===== ===== ===== ===== ===== =====
 PROVED DEVELOPED AND UNDEVELOPED 
   RESERVES
 Balance at December 31, 2002     1,928 2,049 2,269    42    --    42
  Revisions of previous estimates    (1)   44     6     6    --     6
  Improved recovery                  85    70    97     4     9     6
  Extensions and discoveries         41   597   141     6    --     6
  Purchases of proved reserves       98    55   107    --    --    --
  Sales of proved reserves           (8)   (9)   (9)   --    --    --
  Production (a)                   (153) (221) (190)  (10)   --   (10)
 -------------------------------  ----- ----- ----- ----- ----- -----
 Balance at December 31, 2003     1,990 2,585 2,421    48     9    50
  Revisions of previous estimates     5   241    45     5    (9)    3
  Improved recovery                  88   185   120     1    --     1
  Extensions and discoveries         30   191    61     2    --     2
  Purchases of proved reserves       39     7    40    (4)   --    (4)
  Sales of proved reserves           --    (1)   --    --    --    --
  Production                       (159) (233) (198)   (9)   --    (9)
 -------------------------------  ----- ----- ----- ----- ----- -----
 Balance at December 31, 2004     1,993 2,975 2,489    43    --    43
  Revisions of previous estimates   (26)   30   (21)    8     6     9
  Improved recovery                 117   131   139    --    --    --
  Extensions and discoveries         52   427   123     1    --     1
  Purchases of proved reserves      112   164   139    --    --    --
  Sales of proved reserves           (8)   (3)   (8)   --    --    --
  Production                       (158) (246) (199)   (7)   (6)   (8)
 -------------------------------  ----- ----- ----- ----- ----- -----
 Balance at December 31, 2005     2,082 3,478 2,662    45    --    45
 ===============================  ===== ===== ===== ===== ===== =====
 PROVED DEVELOPED RESERVES (b)
  December 31, 2002               1,508 1,740 1,798    34    --    34
 ===============================  ===== ===== ===== ===== ===== =====
  December 31, 2003               1,616 1,803 1,917    35     9    37
 ===============================  ===== ===== ===== ===== ===== =====
  December 31, 2004               1,625 1,839 1,932    37    --    37
 ===============================  ===== ===== ===== ===== ===== =====
  December 31, 2005               1,624 1,999 1,957    37    --    37
 ===============================  ===== ===== ===== ===== ===== =====
 (a) Production excludes 12.7 bcf subject to volumetric production 
     payments for 2003.
 (b) Approximately 1 percent of the proved developed oil reserves
     and approximately 2 percent of the proved developed gas reserves
     at December 31, 2005 are non-producing.  Plans are to begin 
     producing these reserves in 2006.

 COSTS INCURRED
 Occidental's 2005, 2004 and 2003 costs incurred in oil and gas
 property acquisition, exploration and development activities,
 whether capitalized or expensed, were as follows:

                                     Consolidated         Other      
 (in millions)                       Subsidiaries       Interests (b)
 ===============================  ================= =================
 FOR THE YEAR ENDED
 DECEMBER 31, 2005
  Property Acquisition Costs
    Proved Properties                   $ 1,782           $    --    
    Unproved Properties                     398                --    
  Exploration Costs                         257                (2)   
  Development Costs                       1,932                15    
                                        -------           -------    
 Costs Incurred (a,b)                   $ 4,369           $    13    
 ================================       =======           =======    
 FOR THE YEAR ENDED
 DECEMBER 31, 2004
  Property Acquisition Costs
    Proved Properties                   $   158           $   (12)   
    Unproved Properties                       8                --    
  Exploration Costs                         158                --    
  Development Costs                       1,463                10    
                                        -------           -------    
 Costs Incurred (a,b)                   $ 1,787           $    (2)   
 ================================       =======           =======    
 FOR THE YEAR ENDED
 DECEMBER 31, 2003
  Property Acquisition Costs
    Proved Properties                   $   364           $    --    
    Unproved Properties                       4                --    
  Exploration Costs                          98                (1)   
  Development Costs                       1,109                10    
                                        -------           -------    
 Costs Incurred (a,b)                   $ 1,575           $     9    
 ================================       =======           =======    
 (a) Excludes capitalized CO2 of $59 million in 2005, $54 million in
     2004 and $48 million in 2003.
 (b) Includes equity investees' costs in Russia and Yemen, partially
     offset by minority interests in a Colombian affiliate.

PROVED RESERVE ADDITIONS

Revisions of Previous Estimates

In 2005, Occidental had net negative revisions of its proved reserves of 26 million BOE due to changes in price. The decrease was mainly due to negative revisions of 52 million BOE from the Dolphin Project, Qatar, Oman and Yemen where reserve amounts decrease when prices rise. These revisions were partially offset by positive revisions at domestic operations in Elk Hills and the Permian Basin. If oil prices increase, less oil volume is required to recover costs, and production sharing contracts would reduce Occidental's share of proved reserves. Oil price changes would also tend to affect the economic lives of proved reserves from other contracts, in a manner partially offsetting the PSC reserve volume changes.

Improved Recovery

In 2005, Occidental added reserves of 139 million BOE through improved recovery, mainly in the Permian Basin, Elk Hills field, and Long Beach in the United States and also in Qatar. In an effort to partially mitigate the decline in oil and gas production from the Elk Hills field, Occidental has successfully implemented an infill drilling program. The Elk Hills operations employ both gas flood and water flood techniques. In the Permian Basin, the increased reserves were primarily attributable to enhanced recovery techniques, such as drilling additional CO2 flood and water flood wells.

Extensions and Discoveries

Occidental obtains reserve additions from extensions which are dependent on successful exploitation programs. In 2005, Occidental added reserves of 123 million BOE, with 23 million BOE in the United States and 91 million BOE in the Middle East. In western Colorado, Occidental added approximately 9 million BOE from the extension of gas reserves to proved locations, most of which will require additional development capital.

Purchases of Proved Reserves

In 2005, Occidental purchased reserves of 139 million BOE, of which 135 million BOE are in the United States. The reserve additions in the United States were from various acquisitions, primarily in the Permian Basin, of which 71 percent were proved developed reserves. Occidental continues to add reserves through acquisitions when properties are available at reasonable prices.

PROVED UNDEVELOPED RESERVES

In 2005, Occidental's proved undeveloped reserves increased by 148 million BOE. This net increase resulted from improved recovery, extensions, discoveries and purchases, primarily in the Elk Hills field, in the Permian Basin, in western Colorado and in the Dolphin Project. The Dolphin project was 63 percent of the 2005 increase, and the projected start-up for Dolphin production is late 2006. These proved undeveloped additions were partially offset by reserve transfers to the proved developed category as a result of 2005 development programs.

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