Oxy’s business units conduct extensive analyses of stakeholder issues and social risks. The information assists us in developing social responsibility strategies that address challenges, harness opportunities and respond to our stakeholders’ interests and concerns.

In 2010, Oxy conducted new social risk assessments or updated previous assessments at several U.S. and international locations. In the U.S., Oxy completed new social risk assessments at all of the company’s assets in California. We also concluded the first phase of assessment at our Permian business unit in West Texas and southeast New Mexico and at our Mid-Continent business unit, which has operations in five states. Efforts at Oxy’s international assets included an update of the social risk assessment for our operations in Oman.

As stipulated in the Human Rights Policy, Oxy conducts social impact assessments before launching new projects in international locations. Our goal is to gauge the potential effects of the company’s presence in a given region, particularly with respect to indigenous communities. In 2010, an impact assessment was conducted at a new block in Yemen.

Ongoing dialogue with non-governmental organizations (NGOs) is a valuable mechanism for continuous improvement of our Social Responsibility Program. In 2010, Oxy Colombia continued its active engagement with the NGO International Alert, as well as the Mining and Energy Committee for Security and Human Rights (CME) and its member organizations, in updating the VP indicators. A new version of the VP indicators, which adapted recommendations based on Oxy’s experience during the 2009 pilot phase, was shared at a workshop organized by International Alert in 2010. This unique exercise has helped other companies put the VPs into practice.