Occidental Petroleum Corp. said it replaced 100% of 1999worldwide oil and gas production on an equivalent barrel basis.Over the past five years, Occidental has replaced an average 171%of production. Occidental also said it lowered its finding anddevelopment costs by 65% since 1997, to $3.03 per barrel in 1999.

The company set its capital spending budget for 2000 at about$850 million, versus $600 million in 1999, to take advantage ofincreased opportunities created by continued strong energy pricesand strengthening margins for key chemicals. About three-fourths ofthe capital is earmarked for growing the oil and gas business, andthe remainder is designated for chemicals.

For 1999, worldwide gas reserve additions were 292 Bcf,replacing 261 Bcf of production for a replacement ratio of 112%.The production-replacement figures include additions and purchasesbut exclude asset sales. At year-end, Occidental had provedreserves of 1.04 billion barrels of oil and 1.89 Tcf of gas, or1.35 billion barrels of oil equivalent.

A press report last week said Oxy was expected to buy AlturaEnergy Ltd. for about $3.5 billion. Altura is a joint venture of BPAmoco and Shell engaged in oil and gas production in Texas and NewMexico. An Oxy spokesman said the company had no comment.

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