Occidental Petroleum Monetizes Non-Strategic Permian Resources Acreage and Enhances Permian EOR Business Resulting in Higher Net Production

Petroleum Corporation
(NYSE:OXY) announced today that it has agreed
to a number of purchase and sale transactions in the Permian Basin. On a
combined basis, these transactions require no net cash outlay and add
approximately 3,500 barrels of oil equivalent per day to the Company’s
production. Occidental will reduce its Permian Resources position by
13,000 net acres, divesting non-strategic acreage in Andrews, Martin and
Pecos Counties and adding incremental acreage to enhance a future core
development area in Glasscock County. Occidental also agreed to increase
its ownership interests and assume operatorship of a CO2
enhanced oil recovery (EOR) property.

“These transactions support our pathway to breakeven at $50 after
dividend and production growth and our long-term, returns-focused value
proposition. The combined results accelerate cash flow and enhance our
future returns by exchanging low-priority development acreage for low
decline, low capital intensity EOR production that has significant
opportunity for value improvement,” said Vicki Hollub, President and
Chief Executive Officer. “By monetizing assets in the tail of the
portfolio that were not strategic to us, but are synergistic to other
companies, we are creating value for our shareholders.”

The net Permian Resources transactions will generate proceeds of
approximately $0.6 billion. The divested acres had no significant
near-term development plans while the acquired acreage provides
additional value within the future development area. The Permian EOR
transaction included the acquisition of working interests in the
Seminole-San Andres Unit, a premier CO2 flood, interests in
the Seminole Gas Processing Plant, source fields at Bravo Dome Unit and
West Bravo Dome Unit and the Sheep Mountain and Rosebud CO2 pipelines
for $0.6 billion. Occidental has had an ownership interest in these EOR
assets since 2000. Seminole-San Andres Unit will become Occidental’s
largest domestic oil producing EOR unit.

All the transactions are expected to close by the third quarter. An
updated investor presentation, which includes additional details is
available at: http://www.oxy.com/investors/Earnings/Pages/Investor-Presentations.aspx.

About Occidental Petroleum

Petroleum Corporation
is an international oil and gas exploration
and production company with operations in the United States, Middle East
and Latin America. Headquartered in Houston, Occidental is one of the
largest U.S. oil and gas companies, based on equity market
capitalization. Occidental’s midstream and marketing segment gathers,
processes, transports, stores, purchases and markets hydrocarbons and
other commodities. The company’s wholly owned subsidiary OxyChem
manufactures and markets basic chemicals and vinyls. Occidental posts or
provides links to important information on its website at www.oxy.com.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and
involve risks and uncertainties that could materially affect expected
results of operations, liquidity, cash flows and business prospects.
Actual results may differ from anticipated results, sometimes
materially, and reported results should not be considered an indication
of future performance. Factors that could cause results to differ
include, but are not limited to: global commodity pricing fluctuations;
supply and demand considerations for Occidental’s products;
higher-than-expected costs; the regulatory approval environment; not
successfully completing, or any material delay of, field developments,
expansion projects, capital expenditures, efficiency projects,
acquisitions or dispositions; uncertainties about the estimated
quantities of oil and natural gas reserves; lower-than-expected
production from development projects or acquisitions; exploration risks;
general economic slowdowns domestically or internationally; political
conditions and events; liability under environmental regulations
including remedial actions; litigation; disruption or interruption of
production or manufacturing or facility damage due to accidents,
chemical releases, labor unrest, weather, natural disasters,
cyber-attacks or insurgent activity; failure of risk management; changes
in law or regulations; reorganization or restructuring of Occidental’s
operations; or changes in tax rates. Words such as “estimate,”
“project,” “predict,” “will,” “would,” “should,” “could,” “may,”
“might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,”
“goal,” “target,” “objective,” “likely” or similar expressions that
convey the prospective nature of events or outcomes generally indicate
forward-looking statements. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. 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. Material risks that may affect
Occidental’s results of operations and financial position appear in Part
I, Item 1A “Risk Factors” of the 2016 Form 10-K.


Occidental Petroleum Corporation
Melissa E. Schoeb
A. Jackson
the web: www.oxy.com