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Through EOR success, extensive 3-D seismic surveying and an 85-percent exploration drilling success rate, Oxy has increased its production, reserves and scope of operations over its 20+ year tenure in Oman. Oxy operates Blocks 9 and 27 in northern Oman and the giant Mukhaizna oil field in Block 53 in south-central Oman. In 2006, Oxy added exploration Block 54, which is strategically adjacent to the Mukhaizna infrastructure.

Oxy began exploring in Block 9 in 1983 and discovered the 300-million barrel Safah field a year later. The Safah discovery followed a string of failures by other companies in the block. Since then Oxy has continued to capitalize on opportunities overlooked by its competitors.

Oxy took over operatorship of the Mukhaizna field— one of the largest in Oman—in September 2005. Oxy and its partners are implementing an aggressive drilling and development program, including a massive steam flood project. Development will be fast-tracked with the goal of increasing production 17-fold from 8,500 barrels per day to 150,000 barrels per day within the next few years. By the end of 2006, Oxy increased gross production to 11,000 BOE per day. The partners expect to recover approximately one billion barrels of oil over the life of the project.

In Block 27, Oxy initiated production in June 2006, just nine months after the government declared the field commercial and three months ahead of target, even given a very aggressive development schedule for drilling, testing and building the facilities. Additional exploration and production wells are currently being drilled.

In 2006, Oxy (and its partner) supplied an average of approximately 116 MMcf per day of natural gas under the an agreement with the Government of Oman. As of year end 2006, the gross proved gas reserves from Block 9 comprise approximately 590 percent of the minimum gas still to be delivered under the agreement.

To meet the country’s growing natural gas needs, in 2004, Oxy and the Omani government built new infrastructure to market 110 to 120 million cubic feet per day of previously stranded natural gas from Block 9.

Oxy is currently pursuing several new exploration and development projects in cooperation with the Omani government.