Oxy Announces $1.09B Tender Offer

Occidental Petroleum Corporation said that it has commenced a cash tender offer to purchase any and all of its 10 1/8% Senior Debentures due 2009, 9 1/4% Senior Debentures due 2019, 8.750% Senior Notes due 2023, 7.200% Senior Debentures due 2028 and 8.450% Senior Notes due 2029. The tender offer will expire at 5 p.m., New York City time, on January 30, 2007 unless extended.

The consideration for each $1,000 principal amount of debt securities tendered and accepted for payment pursuant to the tender offer will be determined at 2:00 p.m., New York City time, on January 29, 2007 in the manner described in the offer to purchase dated January 23, 2007. The purchase price, which will be determined by reference to a fixed spread specified for each series of debt securities over the yield based on the bid-side price of the applicable U.S. Treasury Security as indicated below, will be announced by news release promptly after its determination.

                             Aggregate                   Reference U.S.
                             Principal        Fixed         Treasury
 Title of Security             Amount         Spread        Security
 -------------------------  ------------   ------------   -------------
 10-1/8% Senior Debentures                                  4.625% due
  due 2009                  $221,587,000   28 basis pts   November 2009
 -------------------------  ------------   ------------   -------------
 9-1/4% Senior Debentures                                   4.625% due
  due 2019                  $265,315,000   75 basis pts   November 2016
 -------------------------  ------------   ------------   -------------
 8.750% Senior Notes                                        4.500% due
  due 2023                  $ 75,596,000   88 basis pts   February 2036
 -------------------------  ------------   ------------   -------------
 7.200% Senior Debentures                                   4.500% due
  due 2028                  $200,000,000   88 basis pts   February 2036
 -------------------------  ------------   ------------   -------------
 8.450% Senior Notes                                        4.500% due
  due 2029                  $328,355,000   85 basis pts   February 2036
 -------------------------  ------------   ------------   -------------

In addition, Occidental will pay accrued and unpaid interest up to, but excluding, the applicable settlement date on all validly tendered debt securities accepted for purchase in the tender offer. The settlement date for the tender offer will be the first business day following the expiration date and currently is expected to be January 31, 2007. Occidental intends to use cash on hand to fund the tender offer. The tender offer remains subject to meeting certain conditions, and Occidental reserves the right to extend, terminate, withdraw or amend the tender offer at any time subject to applicable law.

J.P. Morgan Securities Inc. and Citigroup Corporate and Investment Banking are the dealer managers of the tender offer. Questions regarding the tender offer may be directed to J.P. Morgan Securities Inc. (toll-free) at (866) 834-4666 or Citigroup Corporate and Investment Banking at (toll-free) (800) 558-3745. Global Bondholders Services Corporation has been retained to serve as the depositary and information agent. Requests for copies of the offer to purchase, letter of transmittal and related materials should be directed to Global Bondholders Services Corporation at (212) 430-3774 or (toll-free) at (866) 470-4200.