October 11, 2017

Occidental Petroleum Corporation

Permian Field Tour

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Permian Field Tour

• Permian Resources

• Permian EOR

3

Oxy’s Competitive Advantage in Permian Unconventional

Subsurface Characterization

3D Modular Development

Development Scenarios

Vision Well Manufacturing Blueprint

Portfolio Decisions

Hands-Free Operations

Leadership in Full Cycle Returns

Automation and Data Capture

System Integration

Data Analytics

Organization Designed for Integrated Development

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Subsurface Characterization Adds Value

• Extensive subsurface

characterization & expertise

> Seismic integration

> Data acquisition

> Models

• Customized designs based on

unique subsurface attributes

> Sweet spots

> Frac barriers

> Landing zones

• Capture resource potential at

the highest value

Schematic Representation of

2nd Bone Spring Sand Well Placement

2nd Bone Spring Net Sand Thickness and Middle Carbonate Outline

Seismic Interpretation of Middle

Carbonate Inside 2nd Bone Spring Sand

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A A’

Landing + Stimulation + Spacing Optimization

A A’

A’Middle Carb. Outline

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Production drivers

Data analytics

Implement

Surveillance

Vision

Well

Design the system

Challenging the Vision Well Adds Value

• Discover recipe for play-leading wells

• Apply data analytics to identify

production drivers

> Subsurface

> Completion Design

> Choke and lift optimization

• Design the system to test hypothesis

• Implement and confirm results

• Continue to push expectations

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Customized Vision Wells Increase Well Productivity

2nd Bone Spring Productivity Improvement2nd Bone Spring Landing and Frac Optimization

2nd BS Carbonate – Recent 7,500’

2nd BS No Carbonate – 4,500’

2nd BS Carbonate – 4,500’

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Modular Development Adds Value• Maximize value through optimizing

pace and sequencing

• Identify Uncertainties:

> Variability of production results

> Rate of improvement

• Recognize Current Limitations

> Existing infrastructure capacity and water

network

> Land position

• Realize full cycle returns through

modular field development plans

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2

3

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Modular Development Adds Value• Maximize value through optimizing

pace and sequencing

• Identify Uncertainties:

> Variability of production results

> Rate of improvement

• Recognize Current Limitations

> Existing infrastructure capacity and water

network

> Land position

• Realize full cycle returns through

modular field development plans

1

2

3

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Mature land position

Bench delineation

Advanced BLM permitting

Fewer unknowns

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Modular Development Adds Value• Maximize value through optimizing

pace and sequencing

• Identify Uncertainties:

> Variability of production results

> Rate of improvement

• Recognize Current Limitations

> Existing infrastructure capacity and water

network

> Land position

• Realize full cycle returns through

modular field development plans

1

2

3

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Land unitization complete

Appraisal wells complete

Optimized well designs

Infrastructure sized for plan

New technologies implementable

Detailed operations blueprint

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Modular Development Adds Value• Maximize value through optimizing

pace and sequencing

• Identify Uncertainties:

> Variability of production results

> Rate of improvement

• Recognize Current Limitations

> Existing infrastructure capacity and water

network

> Land position

• Realize full cycle returns through

modular field development plans

1

2

3

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Land core-up completed

Learnings from other development

units applied

Vision wells maximizing value

Infrastructure optimized

Optimizing Development Scenarios Adds Value

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Vision ValueVision wells

Acreage improvements

Initial ValueAppraisal and SSC

Optimized InfrastructureBalance infrastructure capacity and pace

Modular DevelopmentPace to implement learning and technology

Optimized Well DesignProductivityWell costLift design

Hands Free OperationsHigher operabilityLower OPEX

• Scale + Position

• Value Based Development

• Organizational Capability

• Integrated Technology

Oxy’s Competitive Advantage

Optimized Pace +

Sequencing =

Leadership in Full Cycle

Returns

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Permian Field Tour

• Permian Resources

• Permian EOR

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Permian EOR Water Floods Permian EOR CO2 Floods

Permian EOR Plants

Permian EOR

• 146 Mboed net production*

• 1.1 MM net acres

• ~20k operated wells

• 34 CO2 floods

• 70 water floods

• 13 gas processing plants

• 3 operated CO2 source fields

• 2.4 Bcf injected daily

Over 2 Bboe Net Resource Potential

~1 Bboe at <$6 F&D

Differentiated Scale and Position

* 2Q 2017 Net Production; does not include Seminole San Andres Acquisition

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Benefits of EOR Business Unit in Oxy’s Portfolio

• Long-term cash generator

> Low capital intensity growth opportunities

> Less than 5% base decline

• Provides synergies including organizational capabilities across business units

Recovery of Oil in Place*

Proven History of Maximizing Recovery

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Fa

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r (%

)

Reservoir Development Stages

0%

10%

20%

30%

40%

50%

60%

70%

Conventional Reservoirs Unconventional

Reservoirs

Primary

Waterflood

CO2

BO

PD

Low Base Decline

Generates Sustainable FCF

Primary

~15%

Waterflood

~30%

CO2

~15%

*Recovery factors listed are representative and are not specific to a field. Actual recovery factors will vary higher and lower depending on specific reservoir characteristics.

Primary

~6-12%

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Permian EOR Keys to Success: Long-term Life Cycle

Asset

Quality Capability

Value-Based

Approach

Innovative

Technology

• Technical EOR Expertise

• Infrastructure and CO2 Supply

• Gas Processing

• Automation and Controls

• High-quality Reservoirs

• Contiguous Scale

• Strategic Position

• 1 Bboe < $6/boe F&D

• Subsurface Characterization

• Phased Development Cycles

• Surveillance and Maintenance

• Safety and Environmental

• Centralized Control of Field

and Plants

• Data Automation and Capture

• Data Analytics

• Hands-free Operations

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Unmatched Infrastructure Position

Field

• ~20,000 wells

• 1,200+ surface facilities

• 30,000 miles of pipelines

• 230+ pumps for water reinjection

Plants

• 13 gas processing plants

• 9 recompression facilities

• 920k hp compression

• 1,600 miles of gathering pipelines

• 1,100 miles of DOT pipelines

• Long-term CO2 supply agreements

Integrated Communications

• Microwave backbone across Permian Basin

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Permian EOR Maintenance

• 20,000 maintenance activities per

month supported by:

> “Right-sized” programs

> Computerized Management System

> Total cost life-cycle approach

Value-based, Full Cycle Approach

Annual Beam Unit Reliability

Drone and Infrared Camera Inspections

99.6% 99.7% 99.8% 99.8% 99.9%

2013 2014 2015 2016 2017

Safer

Faster

Cheaper

Effective

Detect Solids in TanksDetect Hot Spots at Plants

Less than 20

of 7,000+

Beam Units

Fail Each Year

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Field Automation Results in Higher Uptime

• Real-time remote monitoring and

controls for operations, safety and

environment

• Manage by exception

• Artificial lift and injection

optimization using Nexus

Drilling & Completions

Well Data

Facilities Data

Workover Data

Digital Well File

• Oxy internally developed software

• ~1.9+ MM data tags

• Refresh rate every 2 minutes

• Unlimited data store

• Central repository for all well

information

Empowering EmployeesWith Mobile Access to Data

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Permian EOR Plant Automation

• 98% uptime 2017 YTD

• Mobile devices monitor real-

time trends of process variables

• Full access to all graphics and

trends

Empowering Employees

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Permian EOR ReservoirSurveillance

• Best-in-Class Reservoir

Management

• Daily and Periodic Integrated

Multifunctional Well and Pattern

Reviews

• Maximize value and results in Well

Enhancement and Field

Development Opportunities

Artificial Lift

Optimization = 4X

Oil Production

Increase

Daily Diagnostics

Multifunctional Reviews

Opportunity Identification & Ranking

Execution of High Value Program

Identifying Opportunities