Occidental Petroleum 2007 Annual Report Download

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

Form 10-K
Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

o Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934


Occidental Petroleum Corporation
(Exact name of registrant as specified in its charter)
State or other jurisdiction of incorporation or organization 
I.R.S. Employer Identification No. 
Address of principal executive offices 
Zip Code 
Registrant’s telephone number, including area code 
Securities registered pursuant to Section 12(b) of the Act:
 
10 1/8% Senior Debentures due 2009 New York Stock Exchange
9 1/4% Senior Debentures due 2019 New York Stock Exchange
Common Stock New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities
Act. YES o NO
Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act.
(Note: Checking the box will not relieve any registrant
required to file reports pursuant to Section 13 or 15(d) of the
Exchange Act from their obligations under those Sections).
o YES NO
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES o NO
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant’s
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer or a non-accelerated filer.
(See definition of “accelerated filer” and “large accelerated
filer” in Rule 12b-2 of the Exchange Act).
Large Accelerated Filer
Accelerated Filer o Non-Accelerated Filer o
Indicate by check mark whether the registrant is a shell
company (as defined in Exchange Act Rule 12b-2).
o YES NO
The aggregate market value of the voting stock held by
nonaffiliates of the registrant was approximately $47.1 billion,
computed by reference to the closing price on the New York
Stock Exchange composite tape of $57.88 per share of
Common Stock on June 30, 2007. Shares of Common Stock
held by each executive officer and director have been
excluded from this computation in that such persons may be
deemed to be affiliates. This determination of potential affiliate
status is not a conclusive determination for other purposes.
At January 31, 2008, there were 822,567,021 shares of Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement, filed in connection with its May 2, 2008, Annual Meeting of Stockholders, are
incorporated by reference into Part III.

Table of contents

  • Page 1
    ... Code Registrant's telephone number, including area code Delaware 95-4035997 10889 Wilshire Blvd., Los Angeles, CA 90024 (310) 208-8800 Securities registered pursuant to Section 12(b) of the Act: Title of Eath Class 10 1/8% Senior Debentures due 2009 9 1/4% Senior Debentures due 2019 Common Stock...

  • Page 2
    ... and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationships and Related Transactions and Director Independence Principal Accountant Fees and Services 84 84 84 84 84 Part IV Item 15 Exhibits and Financial Statement Schedules...

  • Page 3
    ... Elk Hills and other locations in California, the Hugoton field in Kansas and Oklahoma, Utah and western Colorado. International operations are located in Argentina, Bolivia, Colombia, Libya, Oman, Qatar, the United Arab Emirates (UAE) and Yemen. For additional information regarding Occidental's oil...

  • Page 4
    ... in its core areas of the United States, the Middle East/North Africa and Latin America. CHEMICAL OPERATIONS General OxyChem manufactures and markets basic chemicals, vinyls and performance chemicals. For additional information regarding Occidental's chemical segment, see the information under the...

  • Page 5
    ... exploration and development activity in the industry generally increases the competition for and costs of, and delays access to, services and supplies needed for production. Govirnmintal actions and political instability may affict Occidintal's risults of opirations. Occidental's businesses are...

  • Page 6
    ...2008 73 Name Dr. Ray R. Irani Positions with Occidental and Subsidiaries and Five-Year Employment History Chairman and Chief Executive Officer since 1990; Director since 1984; Member of Executive Committee and Dividend Committee; 2005-2007, President. President since 2007; Chief Financial Officer...

  • Page 7
    ... Financial Statements, set forth the range of trading prices for the common stock as reported on the composite tape of the New York Stock Exchange and quarterly dividend information. In May 2006, Occidental amended its Restated Certificate of Incorporation to increase the number of authorized shares...

  • Page 8
    ... includes employee stock-for-stock exercises of 191 shares in October 2007. (c) Occidental has authorized a buy back of 55 million shares for its share repurchase program. (d) In February 2008, Occidental increased the number of shares authorized for its previously announced share repurchase program...

  • Page 9
    ... Item 7A) STRATEGY General In this report, "Occidental" refers to Occidental Petroleum Corporation, a Delaware corporation (OPC), and/or one or more entities in which it owns a majority voting interest (subsidiaries). Occidental's business is divided into two segments conducted through oil and gas...

  • Page 10
    ...Basin in west Texas and New Mexico and the integration of Vintage Petroleum, Inc. (Vintage) and Plains Exploration and Production Company (Plains) operations acquired in 2006. At the end of 2007, the Elk Hills and Permian assets made up 66 percent of Occidental's consolidated proven oil reserves and...

  • Page 11
    ... Indicators General Occidental seeks to ensure that it meets its strategic goals by continuously measuring its success in maintaining below average debt levels and top quartile performance compared to its peers in Total return to stockholders; Return on equity; Return on capital employed; and...

  • Page 12
    ...its annual dividend by 82 percent while its stock price increased by 164 percent. OIL AND GAS SEGMENT Business Environment Oil and gas prices are the major variables that drive the industry's short and intermediate term financial performance. Average yearly oil prices strengthened in 2007 over 2006...

  • Page 13
    ...1.2 billion BOE in proved reserves. Occidental's Permian Basin production is diversified across a large number of producing areas. In 2007, Wasson San Andres was Occidental's largest Permian producing field with an average of approximately 38,000 BOE per day of production and with 311 million BOE of...

  • Page 14
    ..., resulting in 246 new wells being drilled and 507 wells being worked over. At the end of 2007, the Elk Hills properties had an estimated 519 million BOE of proved reserves. Vintage Production California In 2006, Occidental combined its California properties acquired from Vintage and Plains with...

  • Page 15
    ... Occidental acquired Anadarko Petroleum Corporation's 92.5-percent interest in an exploration and production sharing agreement covering Blocks 12 and 13 located offshore Qatar. Block 13 is an exploration block. These projects do not transfer any right of ownership to Occidental and reserves reported...

  • Page 16
    ... of new waterflood projects. Occidental's share of production from Argentina averaged 36,000 BOE per day in 2007. Proved reserves from these assets totaled 177 million BOE at December 31, 2007. Bolivia In 2006, Occidental's operating subsidiary acquired working interests in four blocks located in...

  • Page 17
    ...in the Dolphin Project, Qatar, Elk Hills, THUMS and Argentina, partially offset by positive revisions in Permian and Hugoton. Oil price changes affect proved reserves recorded by Occidental. For example, if oil prices increased by $5 per barrel, less oil volume is required to recover costs, and PSCs...

  • Page 18
    ...costs, which led to lower margins in the PVC business. This was partially offset by an increase in demand for United States products in export markets in 2007 aided by expanding international economies along with favorable foreign currency exchange rates. Business Review Basic Chemicals During 2007...

  • Page 19
    ... the sale of 11 million shares of Lyondell common stock. (g) In June 2007, Occidental completed an exchange of oil and gas interests in Horn Mountain with BP for oil and gas interests in the Permian Basin and a gas processing plant in Texas. Occidental sold its oil and gas interests in Pakistan to...

  • Page 20
    ... 186 593 242 133 170 545 Latin Amerita Crude oil (MBBL) Argentina Colombia Total 32 33 38 - 36 36 42 74 71 17 17 34 Natural Gas (MMCF) Argentina Bolivia Total 22 18 40 - - - Middle East/North Afrita Crude oil (MBBL) Oman 20 4 18 17 Dolphin Qatar Yemen Libya Total - 43 - 42 28 8 95 44...

  • Page 21
    ...(continued) In millions, except as indicated 2007 2006 2005 Average Sales Prites Crude Oil Prites ($ per bbl) United States Latin America Middle East/North Africa (c) Total consolidated subsidiaries $ $ $ 65.67 56.66 69.24 57.84 $ 50.12 $ 51.18 52.40 61.58 57.81 62.59 57.81 6.49 49...

  • Page 22
    ...) (18) (44) Write-off of plants Hurricane insurance charge Total Chemical CORPORATE $ (159) (11) (170) 140 $ Gain on sale of Lyondell shares Debt purchase expense $ (167) (47) Facility closure Severance charge Deferred tax write-off due to compensation program changes (a) (31) - - (40) 108...

  • Page 23
    ... from the start-up of the Dolphin Project in the third quarter of 2007. The increase in net sales in 2006, compared to 2005, reflects higher crude oil prices and oil and gas production and higher chemical prices, partially offset by lower natural gas prices. Interest, dividends and other income...

  • Page 24
    ...to higher crude oil and natural gas production taxes and increases in stock-based and incentive compensation expense. DD&A increased in 2007, compared to 2006, due to increased production, mainly from the Dolphin Project, and higher costs of new reserve additions resulting in a higher DD&A rate. 19

  • Page 25
    ..., mainly from the Vintage acquisition and higher costs of new reserve additions resulting in a higher DD&A rate. The increase in exploration expense in 2007, compared to 2006, was due to increases in the Colombia and Middle East/North Africa exploration programs and impairments in California...

  • Page 26
    ... due to the sale of Occidental's investments in auction rate securities. The increase in trade receivables, net was due to higher crude oil and natural gas prices and volumes during the fourth quarter of 2007 compared to 2006. The decrease in receivables from joint ventures, partnerships and other...

  • Page 27
    .... In 2007, Occidental's realized crude oil prices increased 12 percent and its oil and gas production increased by over 4 percent compared to 2006. The increase in production was mainly due to the start-up of the Dolphin Project production in the third quarter of 2007. Increases in the costs of...

  • Page 28
    ... joint venture, $509 million from the sale of other businesses and properties, and $250 million from the sale of auction rate securities. The 2007 amount also includes the cash paid for the acquisitions of various oil and gas and chemical interests, a Permian Basin common carrier pipeline system...

  • Page 29
    ...pipeline company to service or prepay project debt. At December 31, 2007, Occidental also had obligations relating to performance bonds totaling $14 million. Leases Occidental has entered into various operating-lease agreements, mainly for railcars, power plants, manufacturing facilities and office...

  • Page 30
    ... laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages and civil penalties; however, Occidental is usually one of many companies in these proceedings and has to date been successful in sharing...

  • Page 31
    ... 2007, $18 million in 2006 and $17 million in 2005. See "Off-Balance-Sheet Arrangements - Contractual Obligations" for further information. Occidental has certain other commitments under contracts, guarantees and joint ventures, including purchase commitments for goods and services at market-related...

  • Page 32
    ... Certain subsidiaries of OPC are currently addressing releases of substances from past operations at 17 active facilities. Four assets - a chemical plant in Louisiana, a chemical plant in Kansas and certain oil and gas properties and pipeline systems in the southwestern United States - account for...

  • Page 33
    ...facilities. Remediation expenses relate to existing conditions caused by past operations and do not contribute to current or future revenue generation. Although total costs may vary in any one year, over the long term, segment operating and capital expenditures for environmental compliance generally...

  • Page 34
    ... ended December 31, 2007, net sales outside North America totaled $6.3 billion, or approximately 33 percent of total net sales. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The process of preparing financial statements in accordance with GAAP requires the management of Occidental to make estimates...

  • Page 35
    ... useful lives of Occidental's chemical plants include sustained higher or lower product prices, which are particularly affected by both domestic and foreign competition, feedstock costs, energy prices, environmental regulations and technological changes. Occidental performs impairment tests on...

  • Page 36
    ...after December 15, 2008. Occidental is currently assessing the effect of EITF Issue No. 07-1 on its financial statements but it is not expected to be material. SFAS No. 141(R) In December 2007, FASB issued SFAS No. 141(R), "Business Combinations." This statement provides new accounting guidance and...

  • Page 37
    ...) (68) SFAS No. 158 In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106, and 132(R)." This statement requires an employer to recognize the overfunded or underfunded amounts...

  • Page 38
    established policy controls and procedures. With respect to derivatives used in its oil and gas marketing operations, Occidental utilizes a 29

  • Page 39
    ... conducts its risk management activities for energy commodities (which include buying, selling, marketing, trading, and hedging activities) under the controls and governance of its Risk Control Policy. The President and Chief Financial Officer and the Risk Management Committee, comprising members...

  • Page 40
    terminated all of its interest-rate swaps that were accounted for as fair-value hedges. These hedges had effectively converted approximately $1.7 billion of fixed-rate debt to variable-rate debt. The fair value of the swaps at termination resulted in a gain of approximately $20 million, which was ...

  • Page 41
    ...of the date of this report. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. Certain of the risks that may affect Occidental's results of operations and financial position appear...

  • Page 42
    ... DATA MANAGEMENT'S ANNUAL ASSESSMENT OF AND REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Occidental Petroleum Corporation and subsidiaries (Occidental) is responsible for establishing and maintaining adequate internal control over financial reporting. Occidental's system...

  • Page 43
    ... the standards of the Public Company Accounting Oversight Board (United States), Occidental Petroleum Corporation and subsidiaries' internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control - Integrated Framework issued by the Committee of...

  • Page 44
    ... To the Board of Directors and Stockholders Occidental Petroleum Corporation: We have audited Occidental Petroleum Corporation and subsidiaries' internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control - Integrated Framework issued by the...

  • Page 45
    ... per-share amounts Occidental Petroleum Corporation and Subsidiaries 2007 $ 18,784 355 874 20,013 $ 2006 2005 $ For the years ended December 31, REVENUES Net sales Interest, dividends and other income Gains on disposition of assets, net 17,175 381 118 14,153 181 870 17,674 15,204 COSTS AND...

  • Page 46
    ... millions Occidental Petroleum Corporation and Subsidiaries 2007 2006 Assets at December 31, CURRENT ASSETS Cash and cash equivalents Short-term investments Trade receivables, net of reserves of $35 in 2007 and $15 in 2006 $ 1,964 - 4,973 $ 1,339 240 2,825 499 Receivables from joint ventures...

  • Page 47
    ...Balance Sheets In millions, except share and per-share amounts Occidental Petroleum Corporation and Subsidiaries 2007 2006 Liabilities and Stockholders' Equity at December 31, CURRENT LIABILITIES Current maturities of long-term debt and notes payable Accounts payable $ 47 $ 171 2,263 1,532 188...

  • Page 48
    ... 31, 2007 (a) (b) (c) (d) Restated to reflect a two-for-one stock split effected as a 100-percent stock dividend in August 2006. See Note 1 for further information. Restated to reflect adoption of FSP AUG AIR-1. See Note 3 for further information. Amount represents stock issued for the Vintage...

  • Page 49
    38

  • Page 50
    ...millions Occidental Petroleum Corporation and Subsidiaries 2007 $ 5,400 $ 2006 4,...Increase (decrease) in accounts payable and accrued liabilities (...common stock Purchases of treasury stock Redemption of preferred stock Cash dividends paid Stock options exercised Excess tax benefits related to share...

  • Page 51
    ... crude oil, natural gas liquids (NGL) and natural gas. The subsidiaries and other affiliates in the chemical segment (OxyChem) manufacture and market basic chemicals, vinyls and performance chemicals. On August 1, 2006, Occidental effected a two-for-one stock split in the form of a stock dividend...

  • Page 52
    ... 31, 2007, relating to Occidental's operations in countries outside North America. Occidental operates some of its oil and gas business in countries that occasionally have experienced political instability, armed conflict, civil unrest, security problems, restrictions on production equipment imports...

  • Page 53
    ...affected by both domestic and foreign competition, feedstock costs, energy prices, environmental regulations and technological changes. Occidental performs impairment tests on its assets, per Statement of Financial Accounting Standards (SFAS) No. 144, whenever events or changes in circumstances lead...

  • Page 54
    ... costs. Laws and regulations might change to impose more or less stringent remediation requirements. Ø At sites involving multiple parties, Occidental provides environmental reserves based upon its expected share of liability. When other parties are jointly liable, the financial viability...

  • Page 55
    ... identified conditional asset retirement obligations at a certain number of its facilities that are related mainly to plant decommissioning. Under Financial Accounting Standards Board (FASB) Interpretation No. (FIN) 47, which Occidental adopted on December 31, 2005, Occidental was required to record...

  • Page 56
    ... the quoted market price of Occidental's stock at the grant date, less the amount that the employee must pay to acquire the stock. Any compensation expense for these awards was recognized on a straight-line basis over the vesting periods of the respective awards. For PSAs, compensation expense...

  • Page 57
    ... a pre-tax write-off of $(673) million, and $611 million and $325 million, respectively. In September 2006, Occidental acquired oil and gas assets located in the Permian Basin in West Texas and California from Plains Exploration and Production Co. (Plains) for approximately $859 million in cash. 46

  • Page 58
    ...after December 15, 2008. Occidental is currently assessing the effect of EITF Issue No. 07-1 on its financial statements but it is not expected to be material. SFAS No. 141(R) In December 2007, FASB issued SFAS No. 141(R), "Business Combinations." This statement provides new accounting guidance and...

  • Page 59
    ... (68) SFAS No. 158 In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106, and 132(R)." This statement requires an employer to recognize the overfunded or underfunded amounts...

  • Page 60
    ... in the open market and retire various amounts of Occidental senior notes and unsecured subsidiary notes. At December 31, 2007, minimum principal payments on long-term debt subsequent to December 31, 2007, aggregated $1,777 million, of which $35 million is due in 2008, $684 million in 2009, $239...

  • Page 61
    ...quotes and the Black Scholes or similar valuation models. COMMODITY PRICE RISK General Occidental's results are sensitive to fluctuations in crude oil and natural gas prices. Marketing and Trading Operations Occidental periodically uses different types of derivative instruments to achieve the best...

  • Page 62
    ...'s 2007 crude oil and natural gas production. Fair Value of Marketing and Trading Derivative Contracts The following tables reconcile the changes in the net fair value of Occidental's marketing and trading contracts, a portion of which are hedges, during 2007 and 2006, and segregate the open...

  • Page 63
    ... laws. These proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages and civil penalties. At December 31, 2007, Occidental, through a wholly owned subsidiary, participated in or monitored ongoing or recent assessments...

  • Page 64
    ... Certain subsidiaries of OPC are currently addressing releases of substances from past operations at 17 active facilities. Four assets - a chemical plant in Louisiana, a chemical plant in Kansas and certain oil and gas properties and pipeline systems in the southwestern United States - account for...

  • Page 65
    ... for 2008. Occidental has entered into various guarantees including performance bonds, letters of credit, indemnities, commitments and other forms of guarantees provided by Occidental to third parties, mainly to provide assurance that OPC or its subsidiaries and other affiliates will meet their...

  • Page 66
    ...of changes in compensation programs in 2006, Occidental wrote off approximately $40 million of the related deferred tax asset that had been recognized in the financial statements prior to the changes. The 2005 federal income tax provision includes a $619 million tax benefit related to the resolution...

  • Page 67
    ... paid-in capital was credited $43 million in 2007, $140 million in 2006 and $74 million in 2005 for a tax benefit from the exercise of certain stock-based compensation awards. As discussed in Note 3, Occidental adopted FIN No. 48 on January 1, 2007. The following table shows the effect of adopting...

  • Page 68
    ... the trustee of its defined contribution savings plan. In 2007, Occidental purchased 20.6 million shares under the programs at an average cost of $54.75 per share. In 2006, Occidental purchased 30.6 million shares under the programs at an average cost of $48.20 per share. In February 2008, the Board...

  • Page 69
    ... years, except in the case of death or disability, during the director's period of service as a member of the Board. Compensation expense for these awards was measured using the quoted market price of Occidental's common stock on the grant date and was recognized at grant date. ADOPTION OF SFAS NO...

  • Page 70
    ... certain conditions. Dividend equivalents are paid during the vesting period. Compensation expense for RSUs is measured on the grant date using the quoted market price of Occidental's common stock on the grant date. The weighted average grant date fair values of the RSUs granted in 2007, 2006, 2005...

  • Page 71
    ... on the grant date using the quoted market price of Occidental's common stock and the number of shares expected to be issued based on the performance criteria. Compensation expense is adjusted during the vesting period only for changes in expected share payout. Cumulative dividend equivalents are...

  • Page 72
    ... and have been issued as Long-Term Incentive awards). CSSUs are equivalent in value to actual shares of Occidental common stock but are paid in cash at the time of vesting. The fair value of the CSSUs is measured on the grant date using the quoted market price of Occidental common stock and expensed...

  • Page 73
    ...POSTRETIREMENT BENEFIT PLANS Occidental provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. The benefits generally are funded by Occidental as the benefits are paid during the year. The total benefit costs...

  • Page 74
    ... Plans Funded Plans 2007 2007 2006 2006 $ 149 $ 128 $ 8 $ 7 4 - 3 - 2007 $ 19 2 $ 21 2006 $ $ 28 1 29 $ 152 $ 132 $ 8 $ 7 Occidental does not expect any plan assets to be returned during 2008. COMPONENTS OF NET PERIODIC BENEFIT COST AND OTHER AMOUNTS RECOGNIZED IN OCI Pension Benefits...

  • Page 75
    ...% - For domestic pension plans and postretirement benefit plans, Occidental bases the discount rate on the Hewitt Bond Universe yield curve in 2007 and the average yield provided by the Moody's Aaa Corporate Bond Index in 2006. The weighted average rate of increase in future compensation levels is...

  • Page 76
    ... of a 24.5-percent interest in the stock of Dolphin Energy Limited (Dolphin Energy), and various other partnerships and joint ventures, discussed below. Equity investments paid dividends of $33 million, $113 million and $161 million to Occidental in 2007, 2006 and 2005, respectively. At December 31...

  • Page 77
    ... to service or prepay project debt. At December 31, 2007, Occidental also had obligations relating to performance bonds totaling $14 million. Occidental has a 50-percent interest in Elk Hills Power, LLC (EHP), a limited liability company that operates a gas-fired, powergeneration plant in California...

  • Page 78
    ... facility in Taft, Louisiana, a cogeneration facility at Ingleside, Texas (consolidated in October 2006) and two common carrier oil pipeline systems in the Permian Basin. INDUSTRY SEGMENTS In millions Oil and Gas Chemical Corporate and Other Total YEAR ENDED DECEMBER 31, 2007 Net sales...

  • Page 79
    ... million in 2006 and $26 million in 2005. (g) Chemical includes the 2005 write-off of plants of $159 million and a hurricane insurance charge of $11 million. GEOGRAPHIC AREAS In millions For the years ended December 31, United States Foreign Qatar Colombia Yemen Oman Libya Argentina Canada United...

  • Page 80
    ...costs relating to oil and gas producing activities and related accumulated DD&A were as follows: Consolidated Subsidiaries Middle Other Latin East/ Eastern America North Africa Hemisphere In millions DECEMBER 31, 2007 Proved properties Unproved properties (a) Total property tosts Support facilities...

  • Page 81
    ... Subsidiaries Middle Other Latin East/ Eastern America North Africa Hemisphere In millions FOR THE YEAR ENDED DECEMBER 31, 2007 Property Acquisition Costs Proved Properties Unproved Properties Exploration costs Development costs Costs Inturred FOR THE YEAR ENDED DECEMBER 31, 2006 Property...

  • Page 82
    ...oil and gas trading activities and items such as asset dispositions, corporate overhead, interest and royalties, were as follows: Consolidated Subsidiaries Middle Other Latin East/ Eastern America North Africa Hemisphere In millions FOR THE YEAR ENDED DECEMBER 31, 2007 Revenues (b) Production costs...

  • Page 83
    ...PER UNIT OF PRODUCTION (Unaudited) Consolidated Subsidiaries Middle Other Latin East/ Eastern America North Africa Hemisphere United States FOR THE YEAR ENDED DECEMBER 31, 2007 Revenues from net production Barrel of oil equivalent ($/bbl.) (c,d) Production costs Exploration expenses Other operating...

  • Page 84
    2007 Quarterly Financial Data In millions, except per-share amounts (Unaudited) Occidental Petroleum Corporation and Subsidiaries September 30 $ 3,536 1,241 64 4,841 Three months ended Segment net sales Oil and gas Chemical Other Net sales Gross profit Marth 31 $ 2,916 1,060 39 4,015 1,964 $ ...

  • Page 85
    2006 Quarterly Financial Data In millions, except per-share amounts (Unaudited) Occidental Petroleum Corporation and Subsidiaries March 31 $ 2,994 Three months ended Segment net sales Oil and gas Chemical Other Net sales Gross profit June 30 $ September 30 $ December 31 $ 2,946 1,036 56 4,038 ...

  • Page 86
    ...many cases, activity-based cost models for a reservoir are utilized to project operating costs as production rates and the number of wells for production and injection vary. A senior corporate officer of Occidental is responsible for the internal audit and review of its oil and gas reserves data. In...

  • Page 87
    ... subsidiary. Occidental's joint venture interest in Russia was sold in 2007. (c) Approximately three percent of the proved developed reserves at December 31, 2007 are nonproducing. Over half of these reserves are located in Latin America and the remainder is in the United States and Middle East...

  • Page 88
    ... of proved reserves Sales of proved reserves Production Balante at Detember 31, 2007 PROVED DEVELOPED RESERVES (b) December 31, 2004 December 31, 2005 December 31, 2006 1,628 1,833 1,940 2,083 53 129 96 Consolidated Subsidiaries Middle Latin East/ America North Africa Total Other Interests...

  • Page 89
    ... of Discounted Future Net Cash Flows In millions United States AT DECEMBER 31,2007 Future cash flows Future costs Production costs and other operating Consolidated Subsidiaries Middle Latin East/ America North Africa Total Other Interests (a) $ 169,836 $ 11,433 $ 25,195 $ 206,464 $ (187...

  • Page 90
    .... Consolidated Subsidiaries Middle United States Latin America (a) East/ North Africa 69.24 (d) $ 0.99 $ 8.91 $ Total Other Interests (c) 68.74 (d) - 14.44 62.59 (d) 2007 Oil - Average sales price ($/bbl.) Gas - Average sales price ($/Mcf) Average oil and gas production cost ($/bbl.) (b) 2006...

  • Page 91
    ...'s joint venture interest in Russia was sold in 2007. Productive Oil and Gas Wells The following table sets forth, as of December 31, 2007, Occidental's productive oil and gas wells (both producing and capable of production). Consolidated Subsidiaries Middle Latin East/ (d) North Africa America...

  • Page 92
    ... subsidiary. Occidental's joint venture interest in Russia was sold in 2007. At December 31, 2007, Occidental was participating in 117 pressure maintenance projects in the United States, 12 in Latin America and 29 in the Middle East/North Africa. Oil and Gas Acreage The following table sets...

  • Page 93
    ...other TOTAL Natural Gas (MMCF) California Hugoton and other Permian TOTAL Latin America Crude oil (MBBL) Argentina Colombia TOTAL Natural Gas (MMCF) Argentina Bolivia TOTAL Middle East/North Africa Crude oil (MBBL) Oman Dolphin Qatar Yemen Libya TOTAL Natural Gas (MMCF) Oman Dolphin TOTAL Barrels of...

  • Page 94
    ... millions Occidental Petroleum Corporation and Subsidiaries Balance at Beginning of Period 2007 Allowance for doubtful accounts Environmental Foreign and other taxes, litigation and other reserves $ $ 15 412 323 $ 2006 Allowance for doubtful accounts $ $ 735 Additions Charged to Charged to Costs...

  • Page 95
    ...over Financial Reporting, set forth in Item 8, are incorporated by reference herein. Part III ITEM 10 DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Occidental has adopted a Code of Business Conduct (Code). The Code applies to the Chairman of the Board and Chief Executive Officer, President...

  • Page 96
    ... each of its directors and certain executive officers (filed as Exhibit B to the Proxy Statement of Occidental for its May 21, 1987, Annual Meeting of Stockholders, File No. 1-9210). 10.5* Occidental Petroleum Corporation Split Dollar Life Insurance Program and Related Documents (filed as Exhibit 10...

  • Page 97
    ....9 to the Annual Report on Form 10-K of Occidental for the fiscal year ended December 31, 2006, File No. 1-9210). Amendment No. 2 to Occidental Petroleum Corporation Modified Deferred Compensation Plan. Occidental Petroleum Corporation Senior Executive Supplemental Life Insurance Plan (effective as...

  • Page 98

  • Page 99
    ...10.6 to the Current Report on Form 8-K of Occidental dated October 12, 2006 (date of earliest event reported), File No. 1-9210). Terms and Conditions of Restricted Share Unit Award under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (December 2004 version) (filed as Exhibit 10.57...

  • Page 100
    ...the Occidental Petroleum Corporation 2005 Deferred Stock Program (filed as Exhibit 10.1 to the Current Report on Form 8-K of Occidental dated October 12, 2006 (date of earliest event reported), File No. 1-9210). Occidental Petroleum Corporation Executive Incentive Compensation Plan (filed as Exhibit...

  • Page 101
    ...and Gas) (filed as Exhibit 10.69 to the Annual Report on Form 10-K of Occidental for the fiscal year ended December 31, 2006, File No. 1-9210). Terms and Conditions of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007 version - Chemicals...

  • Page 102
    ... undersigned, thereunto duly authorized. OCCIDENTAL PETROLEUM CORPORATION February 22, 2008 By: /s/ RAY R. IRANI Ray R. Irani Chairman of the Board of Directors and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by...

  • Page 103
    ... Title Date /s/ IRVIN W. MALONEY Irvin W. Maloney /s/ RODOLFO SEGOVIA Rodolfo Segovia Director February 22, 2008 Director February 22, 2008 /s/ AZIZ D. SYRIANI Aziz D. Syriani /s/ ROSEMARY TOMICH Rosemary Tomich /s/ WALTER L. WEISMAN Walter L. Weisman Director February 22, 2008 Director...

  • Page 104
    This report was printed on recycled paper. © 2008 Occidental Petroleum Corporation 92

  • Page 105
    ... Retirement Plan II. Amendment Number 3 to Occidental Petroleum Corporation Supplemental Retirement Plan II. Statement regarding computation of total enterprise ratios of earnings to fixed charges for each of the five years in the period ended December 31, 2007. List of subsidiaries of Occidental...

  • Page 106
    ...") maintains the Occidental Petroleum norporation Modified Deferred nompensation Plan (the "MDnP") for the purpose of providing a tax-deferred opportunity for key management and highly compensated employees of the norporation and its affiliates to accumulate additional retirement income through...

  • Page 107
    ... Employee who wishes to defer Base Salary and/or Bonus must file a new complete and fully executed Deferral Election Form in accordance with the instructions set forth in the Deferral Election Form but in any event prior to January 1 of such Plan Year. Each Deferral Election Form will designate...

  • Page 108
    ...Account balance is less than $1,000,000, then the Participant may defer compensation earned in the following Plan Year in accordance with this Article IV. (b) Early Payment Benefit Election . With respect to Base Salary and/or Bonus earned after December 31, 2007, on the Deferral Election Form filed...

  • Page 109
    ..., computed from date of crediting to the end of the month." IN WITNESS WHEREOF , the norporation has caused its duly authorized officer to execute this amendment this _____ day of _____, 2007. OCCIDENTAL PETROLEUM CORPORATION By: Richard W. Hallock Executive Vice-President, Human Resources 4

  • Page 110
    EXHIBIT 10.20 Occidental Petroleum Corporation Supplemental Retirement Plan II Effective as tf Januavy 1, 2005

  • Page 111
    ... the Plan 1.3 Applicatitn tf the Plan 1 1 1 2 Article 2. Definitions 2.1 Definititns 3 3 Article 3. Participation 3.1 Effective Date tf Pavticipatitn 9 9 Article 4. Benefits 4.1 Alltcatitns Relating tt the Retivement Plan 4.2 Alltcatitns Relating tt the Savings Plan 4.3 Alltcatitns Relating tt...

  • Page 112
    ... Nttice tf Annvess 6.13 Data 6.14 Anjustments 6.15 Membev's Own Pavticipatitn 6.16 Innemnificatitn 18 18 19 19 19 19 20 20 Article 7. Amendment and Termination 7.1 Amennment ann Tevminatitn 7.2 Retvganizatitn tf Empltyev 7.3 Pvttecten Benefits 22 22 22 22 Article 8. Claims and Appeals Procedures...

  • Page 113
    ... 1, 2005. It is the puvptse tf this Plan tt pvtvine eligible Empltyees with benefits that will ctmpensate them ftv maximums imptsen by law uptn ctntvibutitns tt qualifien plans. The ptvtitn tf the Plan veflecting cvenits tt ctmpensate ftv the maximum limits imptsen by Ctne sectitn 415 is intennen tt...

  • Page 114
    ... tv Altevnate Payee with vespect tt the tveatment tf accvuals unnev tv benefits payable fvtm the Plan ftv puvptses tf the Ctne ann tthev applicable tax laws. 1.3 Application of the Plan The tevms tf the Plan ave applicable tt eligible Empltyees empltyen by an Empltyev tn tv aftev Januavy 1, 2005...

  • Page 115
    ... Anministvative Ctmmittee as an Affiliate. (c) "Alternate Payee" means a ftvmev sptuse tf a Pavticipant wht is vectgnizen by a Divtvce Ovnev as having a vight tt veceive all, tv a ptvtitn tf, the benefits payable unnev this Plan with vespect tt the Pavticipant. (n) "Base Pay of Record" means the...

  • Page 116
    ...tf a pvtpevty settlement agveement) that velates tt the settlement tf mavital pvtpevty vights between a Pavticipant ann his ftvmev sptuse puvsuant tt a state ntmestic velatitns law (incluning, withtut limitatitn ann if applicable, ctmmunity pvtpevty law). (l) "Deferred Compensation Plan" means the...

  • Page 117
    ...ann theiv agents by pvtvining such inftvmatitn ann taking such tthev actitns as they neem appvtpviate ftv the efficient anministvatitn tf the Plan; ann (E) Its status as an Empltyev unnev the Plan is expvessly ctnnititnen tn its being ann ctntinuing tt be an Affiliate tf the Ctmpany. Subject tt the...

  • Page 118
    (v) (s) "Long-Term Disability Plan" means the Occinental Petvtleum Ctvptvatitn Ltng-Tevm Disability Plan tv, as appvtpviate tt the LTD Pavticipant tv ctntext, the Oxy Vinyls, LP Ltng-Tevm Disability Plan. "Participant" \ means a pevstn meeting the vequivements tt pavticipate in the Plan set ftvth ...

  • Page 119
    ... The Plan Limit, netevminen unnev Appennix II tf the Savings Plan (tv any successtv pvtvisitn), ftv the Plan Yeav ftv a highly ctmpensaten empltyee as nefinen unnev Ctne sectitn 414(q), times the annualizen Base Pay tf Rectvn; (2) 6 pevcent tf the annualizen Base Pay Pain; ann The annual empltyev...

  • Page 120
    (aa) "Wage Base" means the ntllav amtunt tf wages, within the meaning set ftvth in Ctne sectitn 3121(a), uptn which the Empltyev must pay Stcial Secuvity Oln Age, Suvvivtvs ann Disability taxes ftv a Plan Yeav. 8

  • Page 121
    Article 3. Participation 3.1 Effective Date of Participation An Empltyee shall bectme a Pavticipant in this Plan, tn tv aftev Januavy 1, 2005, tn the eavliest nate that the Empltyee is nescviben in tne tv mtve tf the ftlltwing subsectitns: (a) Any Empltyee wht was a Pavticipant in the Supplemental ...

  • Page 122
    Article 4. Benefits 4.1 Allocations Relating to the Retirement Plan (a) Eligibility. The ftlltwing Empltyees wht bectme Pavticipants shall be pvtvinen the alltcatitn ftv the Plan Yeav specifien in subsectitn (b): (1) An Empltyee: (A) Wht is eligible tt pavticipate in the Savings Plan ann the ...

  • Page 123
    ... unnev this pavagvaph shall ntt be subject tt venuctitn unnev pavagvaph (2). 4.2 Allocations Relating to the Savings Plan (a) Eligibility. An Empltyee wht is eligible tt pavticipate in the Savings Plan ftv the Plan Yeav ann whtse Base Pay Pain ftv the Plan Yeav exceens the amtunt specifien 11

  • Page 124
    ... an Empltyee tn the nate that any such btnus is awavnen. Ftv puvptses tf this subsectitn, the tevm "applicable pevcentage" shall mean 12 pevcent in the case tf a Pavticipant wht shall have attainen age 35 pvitv tt the enn tf the Plan Yeav in which the alltcatitn is mane ann 8 pevcent in the...

  • Page 125
    ... a liability, payable when nue unnev this Plan, tut tf the geneval assets tf the Ctmpany, tv fvtm the assets tf any tvust, custtnial acctunt tv escvtw avvangement which the Ctmpany may establish ftv the puvptse tf assuving availability tf funns sufficient tt pay benefits unnev this Plan. The mtney...

  • Page 126
    ... Time for Distributions (a) General Rules. A Pavticipant's vesten acctunt unnev this Plan may ntt be nistvibuten eavliev than: (1) (2) The Pavticipant's Sepavatitn fvtm Sevvice; The Pavticipant's neath. (b) Special Rules. Nttwithstanning the ftvegting: (1) In the case tf a Pavticipant wht...

  • Page 127
    ...60 th nay aftev this Plan is antpten by the Btavn, but in nt event latev than Decembev 31, 2005. (n) New Participants. Any Empltyee wht...tne-yeav annivevsavy tf the nate the changen electitn is pvtpevly mane. In the case tf a payment tn acctunt tf the Pavticipant's Sepavatitn fvtm Sevvice, the fivst...

  • Page 128
    ... sectitns 3101 ann 3121(v)(2) tn amtunts heln by the Plan as well as a payment tt pay any inctme tax at stuvce tn wages imptsen unnev Ctne...law tt be withheln with vespect tt benefits eavnen ann vesten unnev this Plan tv any tthev ctmpensatitn avvangement may be withheln fvtm the Pavticipant's benefit...

  • Page 129
    ...than at a meeting. 6.4 Chairman, Secretary, and Employment of Specialists The membevs tf the Anministvative Ctmmittee shall elect tne tf theiv numbev as Chaivman ann shall elect a Secvetavy wht may, but neen ntt, be a membev. They may authtvize tne tv mtve tf theiv numbev tv any agent tt execute tv...

  • Page 130
    ...pevstn tv agents. 6.7 ...Subject tt the limitatitns ctntainen in the Plan, the Anministvative Ctmmittee shall be emptweven fvtm time tt time in its niscvetitn tt antpt by-laws ann establish vules ftv the ctnnuct tf its affaivs ann the exevcise tf the nuties imptsen uptn it unnev the Plan. 6.9 Powers...

  • Page 131
    ... capacity with vespect tt the Plan. 6.12 Notice of Address Each pevstn entitlen tt benefits fvtm the Plan must file with the Anministvative Ctmmittee tv its agent, in wviting, his mailing annvess ann each change tf his mailing annvess. Any ctmmunicatitn, statement, tv nttice annvessen tt such...

  • Page 132
    ... atttvney's fees ann ctuvt ctsts, incuvven by that pevstn tn acctunt tf his tv hev gttn faith actitns tv failuves tt act with vespect tt his tv hev vesptnsibilities velating tt the Plan. The Ctmpany's innemnificatitn shall inclune payment tf any amtunts nue unnev a settlement tf any lawsuit tv...

  • Page 133
    ...pevmit the Ctmpany tt select ctunsel ann tt ctnnuct the nefense tf the lawsuit. (3) (4) Nt Innemnifien Pevstn shall be innemnifien unnev this sectitn with ...the Ctmpany tv as may be pvtvinen by the Ctmpany unnev any by-law, agveement tv tthevwise, pvtvinen that nt expense shall be innemnifien unnev ...

  • Page 134
    Article 7. Amendment and Termination 7.1 Amendment and Termination The Ctmpany expects the Plan...nistvibutitn. (b) 7.2 Reorganization of Employer In the event tf a mevgev tv ctnstlinatitn...claim against the Empltyev ftv benefits unnev tv in ctnnectitn with the Plan. 7.3 Protected Benefits If the Plan...

  • Page 135
    Article 8. Claims and Appeals Procedures 8.1 Application for Benefits All applicatitns ftv benefits unnev the Plan shall be submitten tt: Occinental Petvtleum Ctvptvatitn, Attentitn: Anministvative Ctmmittee, 10889 Wilshive Blvn., Lts Angeles, CA 90024. Applicatitns ftv benefits must be in wviting ...

  • Page 136
    ... shall be nt fuvthev vight tf appeal. Nt pevstn may initiate a lawsuit beftve fully exhausting the claims pvtcenuves set tut in this Avticle, incluning appeal. Tt pvtvine ftv an expenititus vestlutitn tf any nispute ctncevning a claim ftv benefits that has been nenien ann tt ensuve that all evinence...

  • Page 137
    (b) 365 nays aftev an applicant's tviginal applicatitn ftv benefits. 25

  • Page 138
    ... the tevms tf Qualifien Divtvce Ovnevs. In the event that a Qualifien Divtvce Ovnev exists with vespect tt benefits payable unnev the Plan, such benefits tthevwise payable tt the Pavticipant specifien in the Qualifien Divtvce Ovnev shall be payable tt the Altevnate Payee specifien in such Qualifien...

  • Page 139
    ... Ctmpany ann the Plan fvtm any claim with vespect tt such amtunts in any case in which: (a) The Ctmpany, the Plan, tv any Plan vepvesentative has been ... vegistvatitn tv cevtificatitn. 9.10 Applicable Law The Plan shall be gtvevnen by ann ctnstvuen in acctvnance with Ctne sectitn 409A (tv tthev...

  • Page 140
    ... employees with benefits that would otherwise be provided under the nompany's qualified plans but for the limits imposed by law upon contributions to qualified plans; WHEREAS, the SRPII is generally intended to comply with the requirements of Section 409A of the Internal Revenue node and related...

  • Page 141
    3. Section 5.2(e) of the SRPII is amended by adding the following new paragraph (4) at the end thereof: (4) In the case of a payment to a Participant listed on Exhibit B on the payment date specified in Exhibit B, (A) the change in election must be made at least 12 months prior to such specified ...

  • Page 142
    ... be adopted on its behalf by the unanimous action of the Pension and Retirement Plan Administrative nommittee this ____ day of _____, 2005. Occidental Petroleum Corporation Pension and Retirement Plan Administrative Committee Richard W. Hallock Jim A. Leonard Samuel P. Dominick Anthony R. Leach...

  • Page 143
    ... plan until a new Beneficiary designation is effected under the Retirement Plan by such Employee. 2. as follows: Section 2.1(l), relating to the definition of "Deferred Compensation Plan", is amended in its entirety to read (l) Deferred Compensation Plan" means the Occidental Petroleum Corporation...

  • Page 144
    ...its entirety to read as follows: 4.2 Allocations Relating to the Savings Plan (a) Eligibility. Effective January 1, 2007, an Employee who is eligible to participate in the Savings Plan for the Plan Year and whose Base Pay Paid plus Annual Bonus Paid for the Plan Year exceeds the amount specified in...

  • Page 145
    ... Compensation Plan all or any part of any bonus to which he might be entitled. Notwithstanding the preceding sentence, no allocation shall be made to the account of a Participant who is not an Employee on the date that any such bonus is awarded. For purposes of this subsection, the term "applicable...

  • Page 146
    ... to the account of a Participant who is not an Employee on the date that any such bonus is awarded. For purposes of this subsection, the term "applicable percentage" shall mean the sum of the Pretax Deferral and After-Tax Contribution rates elected by the Participant under the Savings Plan (or any...

  • Page 147
    of the calendar year. If the Participant dies while installments remain to be paid, the remaining account credited to the Participant ...Oenbring, P.R. Vincent, P.G. Watkins, A.A. 10. unchanged. Except as amended above, the terms of the Plan as in effect prior to this amendment shall continue ***** 5

  • Page 148
    ... to be adopted on its behalf by the unanimous action of the Pension and Retirement Plan Administrative Committee this ____ day of _____, 2006. Occidental Petroleum Corporation Pension and Retirement Plan Administrative Committee Richard W. Hallock Samuel P. Dominick, Jr. Jim A. Leonard James...

  • Page 149
    ... contributed pursuant to the Occidental Petroleum Flexible Spending Accounts Plan, as amended from time to time) to any qualified plan or plan of deferred compensation; and (D) Any amount paid by an Employer for other fringe benefits, such as health and hospitalization, and group life insurance...

  • Page 150
    ... Participants compensated at an hourly rate, Base Pay of Record means the base hourly rate (subject to the exclusions listed above) multiplied by the number of regularly scheduled hours worked in a pay period. If the Active Participant's regularly scheduled work week is more than 40 hours, Base Pay...

  • Page 151
    ... Savings and Investment Plan or the THUMS Long Beach Company Pension Plan beginning on or after January 1, 2008 through December 31, 2008 shall be ineligible to be a Participant. 4. Paragraph (2) of section 4.1(b), relating to the Reduction Amount in determining Allocations to the Retirement Plan...

  • Page 152
    ... under this subparagraph, no portion of the sum of the Participant's Base Pay Paid and Annual Bonus for the Plan Year in excess of the amount specified in Code section 401(a)(17) in effect for the Plan Year shall be taken into account. The reduction amount shall not be less than zero. 5. Except as...

  • Page 153
    In Witness Whereof, the Company has caused this amendment to be adopted on its behalf by the unanimous action of the Pension and Retirement Plan Administrative Committee this ____ day of _____, 2007. Occidental Petroleum Corporation Pension and Retirement Plan Administrative Committee Richard W. ...

  • Page 154
    ...OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES (Amounts in millions, except ratios) For the years etded December 31, 2007 2006... for taxes ot itcome (other that foreigt oil atd gas taxes) Itterest atd debt expetse (c) Portiot of...

  • Page 155
    ... Energy Marketing, Inc. Occidental International Exploration and Production Company Occidental International Holdings Ltd. Occidental International (Libya), Inc. Occidental International Oil and Gas Ltd. Occidental Latin America Holdings, Inc. Occidental Mukhaizna, LLC Occidental of Elk Hills...

  • Page 156
    ...Permian Basin Limited Partnership Permian VPP Holder, LP Permian VPP Manager, LLC Repsol Occidental Corporation Stockdale Oil and Gas, Inc. Vintage Petroleum, LLC Vintage Petroleum Boliviana, Ltd. Vintage Production California LLC Vintage Petroleum International, Inc. Vintage Petroleum International...

  • Page 157
    ... 31, 2007 and the related financial statement schedule, and the effectiveness of internal control over financial reeorting as of December 31, 2007, which reeorts aeeear in the December 31, 2007 annual reeort on Form 10-K of Occidental Petroleum Coreoration. Our reeort on the financial statements of...

  • Page 158
    ...EXPERT CONSENT To the Board of Directors Occidental Petroleum Corporation: We consent to the inclusion in the Occidental Petroleum Corporation (Occidental) Form 10-K for the year ended December 31, 2007, and the incorporation by reference in Occidental's registration statements (Nos. 333-123324, 33...

  • Page 159
    ...; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 22, 2008 /s/ RAY R. IRANI Ray R. Irani Chairman of the Board of Directors and Chief Executive Officer

  • Page 160
    ... information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 22, 2008 /s/ STEPHEN I. CHAZEN Stephen I. Chazen President and Chief Financial Officer

  • Page 161
    .../s/ RAY R. IRANI Name: Ray R. Irani Title: Chairman of the Board of Directors and Chief Executive Officer Date: February 22, 2008 /s/ STEPHEN I. CHAZEN Name: Stephen I. Chazen Title: President and Chief Financial Officer Date: February 22, 2008 A signed original of this written statement required...