Occidental Petroleum Corporation today announced an asset exchange with BP.

Oxy will receive BP's oil and gas interest in the Seminole San Andres Unit, Sheep Mountain and numerous interests in the Cowden area that are adjacent and complementary to Oxy's existing Permian Basin operations. The Permian Basin extends through West Texas and southeast New Mexico.

The acquired oil and gas properties will add an estimated 39 million barrels of oil equivalent (BOE) of net proved reserves, and net production of approximately 8,000 BOE per day to Oxy's Permian operations. The Sheep Mountain property will strengthen Oxy's position as a leader in CO2 enhanced oil recovery in the Permian Basin.

BP will receive Oxy's one-third interest in the BP-operated Horn Mountain property in the exchange.

At year-end 2006, Oxy's net proved Horn Mountain reserves were approximately 21 million BOE with current average daily production of approximately 8,000 BOE net per day.

Upon closing of these transactions, expected in the third quarter and subject to government approvals, BP will receive from Oxy a total net cash payment of about $100 million, subject to adjustments. Oxy will reclassify its Horn Mountain assets as discontinued operations.

The asset exchange is in addition to the April 23, 2007 announcement of Oxy's purchase of BP's West Texas pipeline system and BP's acquisition of Oxy's interests in Pakistan currently operated by BP.