In 2010, we made significant progress in each of the social responsibility (SR) goals presented in the 2009 report, which were intended to emphasize key elements of our SR performance, including corporate governance, health, environment and safety (HES) and labor practices. As we advance our SR initiatives in 2011, we will continue to measure our performance against these goals.

Stakeholder Engagement

• Continue to engage with key stakeholders on Oxy’s corporate governance, HES and social responsibility efforts.

2010 Progress: With the participation and guidance of Oxy Board members, Oxy managers and employees extended outreach efforts in 2010 and expanded discussions on Oxy’s governance, HES and SR initiatives with key stakeholders, including investors, host governments, local communities, non-governmental organizations (NGOs) and contractors.

• Explore establishment of an external advisory council for Oxy’s Social Responsibility Report and programs.

2010 Progress: Oxy met with several external SR experts and stakeholders to solicit input on opportunities to improve our SR Report and the role an advisory council could play in the reporting process, as well as the selection process for its members. As a result, Oxy is exploring an advisory council and other ways to memorialize feedback and recommendations from a variety of external stakeholders on our SR reporting.

Business Integration

• Continue to integrate our social responsibility and security standards into Oxy’s Health, Environment and Safety Management System (HESMS).

2010 Progress: Leveraging Oxy’s comprehensive HESMS, we have implemented our SR standards at all international and most domestic operations as of year-end 2010.

Health, Environment and Safety

• Achieve an Injury and Illness Incidence Rate (IIR) of 1.0 or better for employees and for contractors on a three-year rolling average basis.

2010 Progress: Oxy achieved its second-best-ever safety performance for employees and contractors in 2010. Our three-year average IIR for 2008-10 was 0.42 for employees and 0.76 for contractors. Notwithstanding this positive performance, we continue to strive to prevent incidents that could result in serious injuries or illnesses.

• Control reportable oil spills to less than 0.01 percent of production on a three-year rolling average basis, excluding spills caused by third parties or natural disasters and net of recoveries.

2010 Progress: The volume of Oxy’s reportable oil spills, net of recoveries, in 2010 was Oxy’s lowest total in the past five years. Excluding spills caused by third parties, our three-year average net volume of reportable oil spills for 2008-2010 was approximately 0.0025 percent of production on a barrels of oil equivalent (BOE) basis.

Labor Practices

• Maintain efforts to make Oxy’s workforce reflect the communities in which the company operates, through national, regional and local hiring practices and equal opportunities for women and minorities.

2010 Progress: The percentage of female and minority U.S. “petrotech” employees increased in 2010 by 7 percent. In addition, Oxy’s continued focus in 2010 on local hiring, training and diversity, both for employees and contractors, has created and expanded opportunities in the communities where we operate.

• Continue to provide the training and development opportunities necessary for employees’ career success at Oxy.

2010 Progress: In 2010, we increased the number of formal training opportunities for our employees. This resulted in an 8-percent increase in training courses completed and a 4-percent increase in the average hours of formal training per employee. Oxy also developed an online Talent Management System that will enhance employee development opportunities.

• Use ongoing workforce planning initiatives to ensure the right policies and programs are in place to facilitate orderly workforce transitions as retirements and other departures occur.

2010 Progress: The new Talent Management System, which is currently being implemented, facilitates both the company’s planning for safe and effective workforce transitions and our employees’ achievement of their career aspirations.