Occidental Petroleum Corporation (NYSE:OXY) and Mubadala Development Company (Mubadala), through its business unit Mubadala Oil & Gas, announced today that they have signed a Development and Production Sharing Agreement (DPSA) with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field. Under this agreement, a Joint Operating Company will be formed to serve as operator for the project under the DPSA. Oxy will hold a 48-percent interest in the DPSA, with Mubadala holding a 32-percent interest and a subsidiary of NOGA holding the remaining 20 percent.

“We are pleased to expand upon our existing relationship with Abu Dhabi and look forward to working with Bahrain on this exciting project,” said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental. “Signing this DPSA is another important step in the implementation of our growth strategy in the Middle East, and the further development of the Bahrain Field will create significant value for the people of Bahrain and for our shareholders.”

“We are delighted with the successful conclusion of our joint negotiations with NOGA,” said Khaldoon Khalifa Al Mubarak, Chief Executive Officer and Managing Director, Mubadala Development Company. “Our collaboration with Oxy is wholly in line with Mubadala’s strategy of developing a top in class international oil and gas unit focused on exploration and development projects in the Middle East, North Africa and South East Asia.”

Development activities will commence immediately. Oil production from the field is expected to more than double to approximately 75,000 barrels per day within five years and grow to a peak level of more than 100,000 barrels per day thereafter. Gas production capacity is expected to grow from the current level of 1.7 billion cubic feet per day to over 2.5 billion cubic feet per day under the Field development plan. Oxy’s net share of production is expected to be approximately 28,000 barrels of oil equivalent per day (BOEPD) in 2010 growing to 56,000 BOEPD within five years. Mubadala’s net share of production is expected to be approximately 18,500 BOEPD and 37,000 BOEPD for the same time periods. Net reserve additions over the life of the project for Oxy are estimated to be 450 million barrels of oil equivalent. Mubadala’s net reserve additions are estimated to be 300 million barrels of oil equivalent over the life of the project.