Acquisitions and Dispositions

Oxy's strong financial performance is due in large part to strategic transactions that have significantly transformed the company and established it in the industry. We continually manage our asset portfolio with an eye toward adding value through new acquisitions or identifying candidates for potential divestment.

Our highly stable, low-risk projects in the U.S., and development opportunities in the Middle East, North Africa and Latin America, yield strong production growth and high returns on capital employed. Transactions must appear able to meet our stringent investment criteria: projected return targets of 15 percent or more for domestic projects and 20 percent or more for international projects. Our capital allocation philosophy is driven by the goal of creating long-term value for stockholders.

Recent Transactions

2010

• Technical Services Contract with Iraq: Eni, Oxy and Korea Gas Corporation signed a technical services contract with Iraq's state-owned South Oil Company and Missan Oil Company as State Partner, to redevelop the Zubair Field, one of the largest discovered oilfields in the world, near Basra in southern Iraq.

2009

• Development and Formation of a Joint Operating Company in Bahrain: After signing a Development and Production Sharing Agreement with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field in the second quarter, Oxy, Mubadala Development Company and NOGA announced in December the creation of a new joint operating company, Tatweer Petroleum-Bahrain Field Development Company, which will serve as the operator for the Bahrain Field. Field operations began on December 1, 2009.
• Acquisition of Phibro LLC: In the fourth quarter, Oxy announced the signing of an agreement to purchase Phibro from Citigroup Inc. Primarily a commodities and securities trading company, Phibro is included as part of Oxy’s Midstream, Marketing and Other segment.

2008

• Exploration and Production Sharing Agreement with Oman: Oxy announced the signing of an Exploration and Production Sharing Agreement (EPSA) with the Ministry of Oil and Gas in the Sultanate of Oman. Oxy serves as operator under the EPSA and holds a 48-percent interest, with Mubadala holding a 32-percent interest and the Oman Oil Company holding the remaining 20 percent.
• Purchase of PXP Interests in the Permian and Piceance Basins: After purchasing 50 percent of Plains Exploration Production Company’s (PXP) interests in the Permian Basin of southwest Texas and southeast New Mexico and the Piceance Basin of Colorado for $1.5 billion in the first quarter, Oxy purchased PXP’s remaining interests in the Permian and Piceance basins for $1.2 billion in December. Current production (net to Oxy) from the properties acquired is estimated at approximately 24,000 barrels of oil equivalent per day (boepd).
• Hydrocarbon Gas Processing in West Texas: Oxy and SandRidge Energy agreed to develop a West Texas hydrocarbon gas processing plant and related pipeline infrastructure that will provide carbon dioxide (CO₂) for use in Oxy's enhanced oil recovery (EOR) projects in the Permian Basin of southwest Texas and southeast New Mexico. The project will allow Oxy to exploit at least 3.5 trillion cubic feet of CO₂ for long-term use in EOR projects, and to develop approximately 500 million barrels of reserves from currently owned assets at an attractive cost.
• Purchase of Interest in Joslyn Oil Sands Project: Oxy purchased a 15-percent interest in the Joslyn Oil Sands Project in northern Alberta, Canada, one of the world's premier oil sands projects with over 8 billion barrels of hydrocarbons in place.* Recoverable reserves net to Oxy are estimated at 370 million barrels.
• Signed Libya Agreements: Oxy signed 30-year agreements with the Libyan National Oil Corporation to upgrade its existing petroleum contracts.

2007

• Purchase of Anadarko Offshore Qatar Interest: Oxy acquired Anadarko Petroleum Corporation's 92.5 percent interest in an Exploration and Production Sharing Agreement covering Blocks 12 and 13 located offshore Qatar.
• Exploration Blocks in Bahrain: Oxy was awarded two offshore exploration blocks in Bahrain, adjacent to major producing fields in Qatar.
• BP Asset Exchange: Oxy completed two transactions with BP that complement our existing Permian operations. In the first transaction, Oxy purchased BP's West Texas pipeline system, with the capacity to transport approximately 191,000 barrels of crude oil per day, and sold non-core oil and gas interests in Pakistan to BP. In the second transaction, an asset exchange with BP, Oxy received additional Permian Basin oil and gas interests in exchange for a one-third interest in the BP-operated Horn Mountain property in the Gulf of Mexico.

*The U.S. Securities and Exchange Commission permits oil and gas companies in their filings with the commission to disclose only reserves anticipated to be economically producible as of a given date by application of development projects to known accumulations. We refer to "recoverable oil reserves" and “hydrocarbons in place” that the commission guidelines strictly prohibit us from using in our filings.