Occidental Petroleum Corporation and Abu Dhabi based Mubadala Development Company have signed an Interim Agreement with the National Oil and Gas Authority of Bahrain (NOGA) for the further development of the Bahrain Field. Under this agreement, OXY, Mubadala and NOGA will complete work on the formation of a new joint operating company (JOC) that will implement a development plan to dramatically increase the Bahrain Field's production of both oil and gas.

During this interim phase, Oxy and Mubadala will continue to have exclusive rights to finalize negotiations on a twenty-year Development and Production Sharing Agreement (DPSA) for the Bahrain Field. It is expected that these negotiations will be concluded by the end of April, 2009.

"We are proud of the rapid progress we have made with NOGA on beginning the transition to a new JOC to oversee the further development of this giant Field and of the important milestone that this Agreement reflects in our relationship with the Kingdom of Bahrain. We look forward to working with NOGA and the management and staff of the Bahrain Petroleum Company (Bapco) as we move forward with this exciting new phase of the oil and gas industry in Bahrain," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental.

"This project is a continuation of Oxy's strategy for growth within the Middle East and consistent with our demonstrated corporate strength of employing improved and enhanced recovery techniques to maximize value from large, mature oil and gas fields. We believe the further development of this field will greatly benefit Bahrain and its citizens; as well as providing an important new growth project for our shareholders," said Dr. Irani.

"Mubadala is an active developer in the international energy sector and this agreement is in line with our strategy of leveraging Abu Dhabi's history and experience to build a diverse range of energy related businesses in the UAE and internationally," said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company. "This project further expands Mubadala's portfolio of first class assets in the upstream oil and gas sector."

Tags: Occidental Petroleum Corporation