OCCIDENTAL PETROLEUM OVERVIEW. TIPRO Annual Summer Conference Jody Elliott August 18, 2016

Transcription

1 OCCIDENTAL PETROLEUM OVERVIEW TIPRO Annual Summer Conference Jody Elliott August 18, 2016

2 Oxy Partner of Choice Social Responsibility Framework and Values Governance and Transparency Workforce Development Health and Safety Environmental Stewardship Economic and Social Development 2

3 OxyChem - Ethylene Cracker on Schedule Ingleside Ethylene LLC 50% / 50% Joint Venture with MexiChem 1.2 billion lbs / year cracker, associated pipeline and storage Long term supply agreement with MexiChem Construction is on budget and on schedule Oxy s share of capital is $725 million ~90% of project capital spending is completed and will decline sharply in 4Q16 Ingleside Ethylene Cracker July 2016 Ingleside Ethylene Cracker July 2016 Start-up expected in 1Q17 3

4 Oxy Midstream - Ingleside Oil Terminal Terminal will have total oil storage capacity of ~2 million barrels and throughput capacity of ~300 thousand barrels per day Project is on budget and on schedule Ingleside Export Facility Phase One Ingleside Export Dock 4

5 Oxy Runs A Focused Oil and Gas Business Oil and Gas Focus Areas United States Leading position in the Permian Basin. Permian Resources is a growth driver. MENA Al Hosn Project, Oman and Qatar. Additional opportunities for growth with partner countries. Latin America Highest margin operations in Colombia. Additional opportunities for moderate growth with partner. 5

6 Oxy is Primarily an Oil Producer By Geography Oil & Gas Production 1H 2016 (Million barrels of oil equivalent) By Commodity % 47% % % % U.S. International Oil NGLs Gas 6

7 Permian Basin Is The Core Domestic Asset Oxy Acreage Oil Pipelines CO2 Pipelines EOR Business 2015 Production MBOEPD 1 million net acres 1.9 Billion BOE remaining in reserves and resources Resources (Unconventional) 2015 Production 110 MBOEPD 1.5 million net acres 8,500 identified well locations Midstream 12 processing plants 1,900 miles of pipeline CO 2 pipelines Oil infrastructure and pipelines Marketing business Infrastructure difficult to duplicate 7

8 NET MBOEPD OPERATED PRODUCTION Oxy is the Largest Permian Basin Producer % 50% 75% Gas Liquids Average Cumulative % of total 3.1 million BOEPD Source: Wood Mackenzie, 9/23/15, Company Net Working Interest Production Rates 8

9 2016 Permian Strategy Given the current oil price environment, we will focus on investment to achieve four core goals: Accelerate geoscience, characterization and modeling programs to enhance recovery, productivity and field economic returns Minimize base decline and set up major growth programs in both Resources and EOR segments Focus resources on game changing technologies and applications Accelerate continued improvements in execution and cost Expect to operate 7-8 rigs in the Permian over the remainder of the year 9

10 Permian Resources Summary 2016 Focus Areas 1.5 million net acre position Shorter cycle faster growth Delaware Basin Central Basin Platform Midland Basin Significant improvements in capital execution efficiency and reduction in operating expenses Will run 5 drilling rigs in development areas Maintain momentum with efficiency improvements Continue to optimize ultimate recoveries Marathon Thrust Belt Val Verde Basin Integrate seismic with data analytics from producing wells to further evaluate inventory 10

11 Number of Injection Wells World Leader in CO 2 Enhanced Oil Recovery U.S. CO 2 EOR Projects Size of bubble = CO 2 EOR Production Volume 3,500 3,000 2,500 Occidental EOR Survey 2,000 1,500 1, Kinder Morgan Exxon Hess Apache Anadarko Chevron Denbury Number of Projects Inject 1.9 billion cubic feet a day Operate 31 CO 2 EOR projects Source: Oil & Gas Journal 2012 Biennial EOR Survey 11

12 CO 2 EOR Process Gas & NGL Sales CO 2 Produced Gas Separate Oil, Gas and Water CO 2 supplied from Pipeline Injection CO 2 Recycled from Gas Plant Production Oil Sales Injector Wellbore Producer Wellbore Drive Water CO 2 Water CO 2 Miscible Zone Oil Bank Additional Oil Recovery Reservoir

13 CO2 EOR A Winning Solution CO2 EOR increases oil production 15% to 25% CO2 EOR is a valid mitigation for reducing CO2 emissions CO2 EOR has support from Oil, Coal AND Environmental & Labor Interests Legislation extending current incentives for capturing CO2 has bipartisan support and will help increase CO2 supplies and lower cost 13

14 Breaking New Ground Occidental has been safely operating profitable CO 2 EOR floods in the Permian for decades Occidental first company to receive approval from U.S. Government for the plan quantifying CO2 sequestered during EOR operations Plan demonstrates techniques used to manage a CO2 flood are the same needed to demonstrate the amount of CO2 sequestered Approach helps minimize the cost of captured CO2 Occidental is proud to be a leader in CO2 EOR 14

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16 Oxy Permian Plaza, Midland, Tx 212,000 square feet and consists of two new buildings; Space for 600 employees room to grow; State of the art technologies and Town Hall venue. 16

17 Midland Technical Training Center South Curtis Ranch 5 Acre Footprint ~23,000 Square Foot Building. ~2.5 Acre practical mock operations space. Blended Learning Environment Formal Classroom. Simulation. Process Trainers. Computer Based. On-The-Job. 17

18 Utilization and Statistics Since September Average ~150 Employees per Month. Average 3 5 classes per week, schedule active through end of Q3. ~30 Programs / Offerings. 18

19 Shaping Our Future Through Action 19

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