Occidental Petroleum Corporation (OXY) and Mubadala Development Company of Abu Dhabi (Mubadala) today announced the signing of an Exploration and Production Sharing Agreement (”EPSA”) with the Ministry of Oil and Gas in the Sultanate of Oman. Under the terms of the EPSA the parties will develop four existing gas fields and explore for potential new discoveries in a newly formed contract area (”Habiba” - Block 62) in Northern Oman. The 20 year agreement covers a 2,269 square kilometre area.

Oxy will serve as operator under the EPSA and hold a 48-percent interest, with Mubadala holding a 32-percent interest and the Oman Oil Company holding the remaining 20 percent.

“We are pleased to expand upon our existing relationship with Oman and look forward to working with our partners to help ensure that future supplies of natural gas will be available to fuel Oman’s economic growth,” said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental. “Signing this EPSA is another important step in the implementation of our growth strategy within the region. The development of the substantial natural gas resources contained within the contract area will create significant value for the people of Oman and for our shareholders.”

“This EPSA is a logical expansion of our energy portfolio in Oman and we are pleased to build upon our long-standing partnership with Oxy in this new venture,” said Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala. “The project is another example of Mubadala’s strategy of leveraging Abu Dhabi’s history and experience as a trusted energy supplier to build a diverse range of energy related businesses in the UAE and internationally.”

Exploration, appraisal and development activities will commence immediately. Production from the area is expected to begin in 2010 and reach a plateau of approximately 165 MMscfd (27,500 boepd) by year end 2011. Oxy’s net share of production at plateau is expected to be approximately 10,000 boepd; with Mubadala’s net share around 6,000 boepd.

Total capital investment in the contract area is expected to be approximately $500 million over the next four years. In addition to the field developments, this investment will include up to nine exploration wells over a six year exploration period to test the upside potential of the shallow and deep gas plays found in the region.

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