Oman offers an excellent operating environment with attractive investment opportunities. Oxy Oman, Inc., Occidental Oil and Gas (Oman) Ltd. and Occidental Mukhaizna, L.L.C., are wholly-owned subsidiaries of Occidental Petroleum Corporation.

Oxy Oman's operations are staffed by a multi-national workforce, which is expected to increase as the Mukhaizna Project progresses. High priority is being placed on employing a significant number of Omani nationals to ensure efficient technology transfer to the country.

Oxy Oman currently holds concessions in Blocks 9, 27 and 53 in the northern and central interior of Oman. Oxy Oman is the second largest oil producer in Oman and to date, has successfully produced more than 160 million barrels oil equivalent (BOE) from 190 producing wells, mostly from the Safah Field. Block 9, encompassing the Safah and Wadi Latham Trend fields, produces high quality crude oil (40° API). Current production rates are approximately 65,000 barrels of oil per day (BOPD).

Since acquiring Block 27 in 1998, Oxy has actively pursued growth opportunities in this concession through exploration activities. In 2005, Oman's Ministry of Oil and Gas approved Oxy's plans to commercialize the block and begin production in 2006.

The current plan for Block 53 (Mukhaizna) in south central Oman is to increase current production from 10,000 barrels to 150,000 BOPD barrels by 2012. Oxy was awarded the Mukhaizna contract in late 2005.

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