Occidental and Mubadala Sign Interim Agreement for Bahrain Field Development

LOS ANGELES, March 16, 2009 (GLOBE NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development Company (Mubadala), a business development and investment company based in Abu Dhabi, announced today that they have signed an Interim Agreement with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field. Under this agreement, OXY, Mubadala and NOGA will complete work on the formation of a new joint operating company (JOC) that will implement a development plan to dramatically increase the Bahrain Field's production of both oil and gas.

During this interim phase, Oxy and Mubadala will continue to have exclusive rights to finalize negotiations on a twenty-year Development and Production Sharing Agreement (DPSA) for the Bahrain Field. It is expected that these negotiations will be concluded by the end of April, 2009.

"We are proud of the rapid progress we have made with NOGA on beginning the transition to a new JOC to oversee the further development of this giant Field and of the important milestone that this Agreement reflects in our relationship with the Kingdom of Bahrain. We look forward to working with NOGA and the management and staff of the Bahrain Petroleum Company (Bapco) as we move forward with this exciting new phase of the oil and gas industry in Bahrain," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental.

"This project is a continuation of Oxy's strategy for growth within the Middle East and consistent with our demonstrated corporate strength of employing improved and enhanced recovery techniques to maximize value from large, mature oil and gas fields. We believe the further development of this field will greatly benefit Bahrain and its citizens; as well as providing an important new growth project for our shareholders," said Dr. Irani.

"Mubadala is an active developer in the international energy sector and this agreement is in line with our strategy of leveraging Abu Dhabi's history and experience to build a diverse range of energy related businesses in the UAE and internationally," said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company. "This project further expands Mubadala's portfolio of first class assets in the upstream oil and gas sector."

Capital investment in the project is expected to be approximately $1.5 billion on a gross basis over the initial five years of the DPSA with significant additional investments thereafter. The development plan is expected to increase oil production to over 100,000 barrels of oil per day and significantly increase gas production capacity above today's level of approximately 1,500 mmcfd.

About Oxy

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.

About Mubadala Development Company

Mubadala Development Company (Mubadala) is a Public Joint Stock Company headquartered in Abu Dhabi, capital of the United Arab Emirates. Its focus is on developing and managing an extensive and economically diverse portfolio of commercial initiatives. It does this either independently or in partnership with leading international organizations. Mubadala's commercial strategy is fundamentally built on long-term capital-intensive investments that deliver strong financial returns.

The company manages a multi-billion dollar portfolio of local, regional and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the Emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure and services.

Mubadala's sole shareholder is the Government of the Emirate of Abu Dhabi. For more information about Mubadala, its partnerships and activities please visit www.mubadala.ae.

Forward Looking Statements

Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to differ materially include, but are not limited to: exploration risks, such as drilling of unsuccessful wells, global commodity pricing fluctuations and supply/demand considerations for oil and gas; higher-than-expected costs; operational interruptions; political risk; and not successfully completing (or any material delay in) any capital expenditure. You should not place undue reliance on these forward-looking statements which speak only as of the date of this filing. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in Occidental's Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.

CONTACT:  Occidental Petroleum Corporation 
          Richard S. Kline
          Chris Stavros

          Mubadala Development Company
          +971 2 413 0000

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