<SUBMISSION>
<ACCESSION-NUMBER>0000797468-07-000027
<TYPE>10-K
<PUBLIC-DOCUMENT-COUNT>26
<PERIOD>20061231
<FILING-DATE>20070227
<DATE-OF-FILING-DATE-CHANGE>20070227
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>OCCIDENTAL PETROLEUM CORP /DE/
<CIK>0000797468
<ASSIGNED-SIC>1311
<IRS-NUMBER>954035997
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-K
<ACT>34
<FILE-NUMBER>001-09210
<FILM-NUMBER>07652397
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>10889 WILSHIRE BLVD
<CITY>LOS ANGELES
<STATE>CA
<ZIP>90024
<PHONE>3102088800
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10889 WILSHIRE BOULEVARD
<CITY>LOS ANGELES
<STATE>CA
<ZIP>90024
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>form10k-2006.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<html>

<head>
  <title>Occidental Petroleum Corporation</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="helvetica,arial" color="#00009D" style='font-size:10pt'>UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
  <br>Washington, D.C. 20549</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="helvetica,arial" color="#00009D" style='font-size:12pt'><b>Form
10-K</b></font></p>

<table width="100%" cellpadding="0" cellspacing="0" border="0">
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="wingdings" style="font-size:10pt">&#254;</font>
      <font face="times new roman" style='font-size:10pt'>Annual Report Pursuant to Section 13 or 15(d)
        <br>of the Securities Exchange Act of 1934</font>
        <br><font face="arial narrow,arial" style='font-size:10pt'><b>For the fiscal year ended December 31,
        2006</b></font></p></td>
    <td width="53%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="wingdings" style="font-size:10pt">o</font>
      <font face="times new roman" style='font-size:10pt'>Transition Report Pursuant to Section 13 or 15(d)
        <br>of the Securities Exchange Act of 1934</font>
        <br><font face="arial narrow,arial" style='font-size:10pt'><b>For the transition period
        from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</b></font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial narrow,arial" style='font-size:10pt'><b>Commission
File Number 1-9210</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="helvetica,arial" color="#00009D" style='font-size:18pt'><b>Occidental
Petroleum Corporation</b></font>
  <br><font face="times new roman" style='font-size:10pt'>(Exact name of registrant as specified in its charter)</font></p>

<table width="100%" cellpadding="0" cellspacing="0" border="0">
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>State or
      other jurisdiction of incorporation or organization</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'><b>Delaware</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>I.R.S.
      Employer Identification No.</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'><b>95-4035997</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>Address of
      principal executive offices</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'><b>10889 Wilshire Blvd.,
      Los Angeles, CA</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>Zip
      Code</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'><b>90024</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>Registrant&#146;s
      telephone number, including area code</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'><b>(310)
      208-8800</b></font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>Securities
registered pursuant to Section 12(b) of the Act:</font></p>

<table width="100%" cellpadding="0" cellspacing="0" border="0">
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:10pt'><b>Title
      of Each Class</b></font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:10pt'><b>Name of
      Each Exchange on Which Registered</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>10 1/8% Senior
      Debentures due 2009</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>New York Stock
      Exchange</font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>9 1/4% Senior
      Debentures due 2019</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>New York Stock
      Exchange</font></p></td></tr>
  <tr>
    <td width="53%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>Common
      Stock</font></p></td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>New York Stock
      Exchange</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:12pt;text-align:center'><font face="times new roman" style='font-size:12pt'>Securities
registered pursuant to Section 12(g) of the Act: None</font></p>

<table width="100%" cellpadding="0" cellspacing="0" border="0">
  <tr>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Indicate by check mark
      if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
      Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">&#254;&nbsp;</font><font face="arial" style='font-size:9pt'>YES
      &nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>NO</font></p>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>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).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>YES</font>
        <br><font face="wingdings" style="font-size:10pt">&#254;&nbsp;</font><font face="arial" style='font-size:9pt'>NO</font></p>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">&#254;&nbsp;</font><font face="arial" style='font-size:9pt'>YES</font>
        <br><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>NO</font></p>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>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&#146;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">&#254;</font></p></td>
    <td width="3%" style='border-right:black 1.0pt solid'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="47%" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>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).</font>
        <br><font face="wingdings" style="font-size:10pt">&#254;&nbsp;</font><font face="arial" style='font-size:9pt'>Large&nbsp;Accelerated&nbsp;Filer
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>Accelerated&nbsp;Filer</font>
        <br><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>Non-Accelerated&nbsp;Filer</font></p>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Indicate by check mark
      whether the registrant is a shell company (as defined in Exchange Act Rule
      12b-2).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">o&nbsp;</font><font face="arial" style='font-size:9pt'>YES
      &nbsp;&nbsp;&nbsp;</font><font face="wingdings" style="font-size:10pt">&#254;&nbsp;</font><font face="arial" style='font-size:9pt'>NO</font></p>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>The aggregate market
      value of the voting stock held by nonaffiliates of the registrant was approximately $42.6 billion, computed by reference to
      the closing price on the New York Stock Exchange composite tape of $51.28 per share of Common Stock on June 30, 2006. 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.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:12pt;text-align:center'><font face="arial" style='font-size:9pt'>At January 31, 2007, there
were approximately 838,100,111 shares of Common Stock outstanding.</font></p>

<p style='margin-top:12pt;margin-bottom:12pt;text-align:center'><font face="arial" style='font-size:9pt'>DOCUMENTS INCORPORATED BY
REFERENCE</font></p>

<p style='margin-top:12pt;margin-bottom:12pt;text-align:justify'><font face="arial" style='font-size:9pt'>Portions of the
registrant&#146;s definitive Proxy Statement, filed in connection with its May 4, 2007, Annual Meeting of Stockholders, are
incorporated by reference into Part III.</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="arial narrow,arial" style='font-size:11pt'><b>TABLE OF
CONTENTS</b></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%">&nbsp;</td>
    <td width="6%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:11pt'><b>Page</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Part
      I</b></font></p></td>
    <td width="79%">&nbsp;</td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Items
      1 and 2</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Business
      and Properties</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>3</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>General</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>3</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Oil
      and Gas Operations</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>3</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Chemical
      Operations</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>4</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Capital
      Expenditures</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>4</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Employees</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>4</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Environmental
      Regulation</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>5</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Available
      Information</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>5</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      1A</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Risk
      Factors</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>5</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      1B</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Unresolved
      Staff Comments</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      3</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Legal
      Proceedings</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      4</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Submission
      of Matters to a Vote of Security Holders</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Executive
      Officers</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Part
      II</b></font></p></td>
    <td width="79%">&nbsp;</td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      5</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Market
      for Registrant&#146;s Common Equity, Related Stockholder Matters and Purchases of Equity Securities</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>7</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      6</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Selected
      Financial Data</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>9</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      7</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:24.5pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Management&#146;s
      Discussion and Analysis of Financial Condition and Results of Operations (MD&amp;A) (Incorporating Item 7A)</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><br><b>9</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Strategy</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>9</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Oil
      and Gas Segment</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>11</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Chemical
      Segment</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>16</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Corporate
      and Other</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>17</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Segment
      Results of Operations</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>17</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Significant
      Items Affecting Earnings</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>19</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Taxes</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>20</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Results of Operations</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>20</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Analysis of Financial Position</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>21</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Liquidity
      and Capital Resources</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>22</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Off-Balance-Sheet
      Arrangements</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>24</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Lawsuits,
      Claims, Commitments, Contingencies and Related Matters</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>25</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Environmental
      Liabilities and Expenditures</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>26</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Foreign
      Investments</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>27</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Critical
      Accounting Policies and Estimates</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>27</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Significant
      Accounting Changes</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>30</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Derivative
      Activities and Market Risk</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>31</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Safe
      Harbor Discussion Regarding Outlook and Other Forward-Looking Data</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>33</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      8</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Financial
      Statements and Supplementary Data</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>34</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Management's
      Annual Assessment of and Report on Internal Control Over Financial Reporting</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>34</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Report
      of Independent Registered Public Accounting Firm on Consolidated Financial Statements</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>35</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Report
      of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>36</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Statements of Income</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>37</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Balance Sheets</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>38</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Statements of Stockholders&#146; Equity</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>40</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Statements of Comprehensive Income</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>40</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Statements of Cash Flows</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>41</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Notes
      to Consolidated Financial Statements</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>42</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Quarterly
      Financial Data (Unaudited)</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>78</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Supplemental
      Oil and Gas Information (Unaudited)</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>80</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Financial
      Statement Schedule:</font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Schedule
      II &#150; Valuation and Qualifying Accounts</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>88</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      9</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Changes
      in and Disagreements with Accountants on Accounting and Financial Disclosure</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      9A</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Controls
      and Procedures</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%">&nbsp;</td>
    <td width="79%" valign=top>
      <p style='margin-left:31pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Disclosure
      Controls and Procedures</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Part
      III</b></font></p></td>
    <td width="79%">&nbsp;</td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      10</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Directors,
      Executive Officers and Corporate Governance</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      11</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Executive
      Compensation</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      12</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Security
      Ownership of Certain Beneficial Owners and Management</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      13</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Certain
      Relationships and Related Transactions and Director Independence</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      14</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Principal
      Accountant Fees and Services</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>89</b></font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Part
      IV</b></font></p></td>
    <td width="79%">&nbsp;</td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='margin-left:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>Item
      15</b></font></p></td>
    <td width="79%" valign=top>
      <p style='margin-left:15.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Exhibits
      and Financial Statement Schedules</font></p></td>
    <td width="6%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>90</b></font></p></td></tr></table>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:13pt'><b>Part
I</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEMS 1 AND 2&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS AND
  PROPERTIES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 conducts its operations through various oil and gas, chemical and
other subsidiaries and affiliates. Occidental&#146;s executive offices are located at 10889 Wilshire Boulevard, Los Angeles,
California 90024; telephone (310) 208-8800.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>GENERAL</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
principal businesses consist of two industry segments operated by OPC's subsidiaries. The subsidiaries and other affiliates in the
oil and gas segment explore for, develop, produce and market crude oil and natural gas. The subsidiaries and other affiliates in the
chemical segment (OxyChem) manufacture and market basic chemicals, vinyls and performance chemicals. For financial information by
segment and by geographic area, see Note 15 to the Consolidated Financial Statements of Occidental (Consolidated Financial
Statements).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
information regarding Occidental's current developments, see the information in the "Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations" (MD&amp;A) section of this report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>OIL
AND GAS OPERATIONS</b></font>
  <br><font face="arial" color="#00009D" style='font-size:9pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
domestic oil and gas operations are principally located at the Permian Basin in west Texas and New Mexico, Elk Hills and other
locations in California, the Hugoton field in Kansas and Oklahoma, the Gulf of Mexico and western Colorado. International operations
are located in Argentina, Bolivia, Colombia, Libya, Oman, Pakistan, Qatar, Russia (sold in January 2007), the United Arab Emirates
(UAE) and Yemen. Occidental also has exploration interests in several other countries. For additional information regarding
Occidental's oil and gas segment, see the information under the caption "Oil and Gas Segment" in the MD&amp;A section of this
report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" color="#00009D" style='font-size:9pt'><b>Proved
Reserves, Production and Properties</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The table
below shows Occidental&#146;s total oil and natural gas proved reserves and production in 2006, 2005 and 2004. See the MD&amp;A
section of this report, Note 18 to the Consolidated Financial Statements and the information under the caption "Supplemental Oil and
Gas Information" in Item 8 of this report for certain details regarding Occidental&#146;s oil and gas proved reserves, the
estimation process and production by country. On May 12, 2006, Occidental reported to the United States Department of Energy on Form
EIA-28 proved oil and gas reserves at December 31, 2005. The amounts reported were the same as the amounts reported in
Occidental&#146;s 2005 Annual Report.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" color="#00009D" style='font-size:9pt'><b>Comparative
Oil and Gas Proved Reserves and Production</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>Oil in millions of barrels; natural gas in billions of cubic feet; BOE
  in millions of barrels of oil equivalent</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="25%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2004</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>RESERVES</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Oil</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Gas</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>BOE</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'>&nbsp;<sup>(b)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Oil</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>BOE</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(b)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Oil</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>BOE</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>United States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>1,678</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>2,442</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>2,085</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,636</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,338</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,026</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,494</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,101</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,844</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>International</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>556</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>1,368</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>784</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>350</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,140</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>540</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>395</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>874</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>541</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Subsidiaries <sup>(c)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>2,234</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>3,810</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>2,869</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,986</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>3,478</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,566</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,889</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,975</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,385</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Other
      Interests <sup>(e)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>30</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>30</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>45</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>45</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>43</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>43</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'><b>PRODUCTION</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>United States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>98</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>217</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>134</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>92</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>202</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>126</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>93</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>186</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>124</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>International</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>68</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>51</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>77</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>50</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>57</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>49</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>47</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>57</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Consolidated
      Subsidiaries <sup>(c)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>166</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>268</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>211</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>142</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>246</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>183</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>142</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>233</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>181</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="25%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Other
      Interests <sup>(e)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>7</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>8</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>8</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>7</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>6</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>8</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>9</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>9</font></p></td>
    <td width="3%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="97%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Includes
      natural gas liquids and condensate.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Natural
      gas volumes have been converted to BOE based on energy content of 6,000 cubic feet (one thousand cubic feet is referred to as
      an "Mcf") of gas to one barrel of oil.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Occidental
      has classified its Ecuador block 15 operations as discontinued operations on a retrospective application basis and excluded
      them from this table.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Stated on
      a net basis and after applicable royalties. Includes reserves related to production-sharing contracts (PSCs) and other
      economic arrangements. Proved reserves from PSCs in the Middle East/North Africa and from other economic arrangements in the
      United States were 486 million barrels of oil equivalent (MMBOE) and 119 MMBOE in 2006, 472 MMBOE and 104 MMBOE in 2005 and
      450 MMBOE and 90 MMBOE in 2004, respectively.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Includes
      Occidental's share of reserves and production from equity investees in Russia (sold in January 2007) and Yemen, partially
      offset by minority interests for a Colombian affiliate.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>3</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" color="#00009D" style='font-size:9pt'><b>Competition
and Sales and Marketing</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As a
producer of crude oil and natural gas, Occidental competes with numerous other domestic and foreign private and government
producers. Crude oil and natural gas are commodities that are sensitive to prevailing global and, in certain cases, local conditions
of supply and demand and are sold at "spot" or contract prices or on futures markets to refiners and other market participants.
Occidental competes by developing and producing its worldwide oil and gas reserves cost-effectively and acquiring rights to explore
in areas with known oil and gas deposits. Occidental also competes by increasing production through enhanced oil recovery projects
in mature and underdeveloped fields and making strategic acquisitions. Occidental focuses on operations in its core areas of the
United States, the Middle East/North Africa and Latin America.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CHEMICAL
OPERATIONS</b></font>
  <br><font face="arial" color="#00009D" style='font-size:9pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>OxyChem
manufactures and markets basic chemicals, vinyls and performance chemicals. For additional information regarding Occidental&#146;s
chemical segment, see the information under the caption &#147;Chemical Segment&#148; in the MD&amp;A section of this
report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" color="#00009D" style='font-size:9pt'><b>Products
and Properties</b></font></p>

<p style='margin-top:0pt;margin-bottom:24pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>OxyChem
owns and operates chemical manufacturing plants at 23 sites in the United States and 3 sites internationally. OxyChem permanently
shut down its mercaptans facility in Baytown, Texas in the fourth quarter of 2006 and its polyvinyl chloride (PVC) facility in
Alberta, Canada in the first quarter of 2006. OxyChem produces the following chemical products:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="25%" style='border-top:black 2.25pt double;border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b>Principal
      Products</b></font></p></td>
    <td width="28%" style='border-top:black 2.25pt double;border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b>Major
      Uses</b></font></p></td>
    <td colspan=2 style='border-top:black 2.25pt double;border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b>Annual
      Capacity <sup>(a)</sup></b></font></p></td>
    <td colspan=2 style='border-top:black 2.25pt double;border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b>Location</b></font></p></td></tr>
  <tr>
    <td colspan=6 valign=top>
      <p style='text-align:justify;margin-top:3.0pt;margin-bottom:0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b><i>Basic
      Chemicals</i></b></font></p></td></tr>
  <tr>
    <td rowspan=2 width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Chlorine</font></p></td>
    <td rowspan=2 width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Chlorovinyl
      chain and water
        <br>treatment</font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">3.7 million
      tons <sup>(b)</sup></font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Alabama, Kansas,
      Louisiana, New York and Texas</font></p></td></tr>
  <tr>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.3 million
      tons <sup>(c)</sup></font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Brazil and
      Chile</font></p></td></tr>
  <tr>
    <td rowspan=2 width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Caustic
      Soda</font></p></td>
    <td rowspan=2 width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Pulp,
      paper and aluminum production</font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">3.9 million
      tons <sup>(b)</sup></font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Kansas, Louisiana, New
      York, and Texas</font></p></td></tr>
  <tr>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.4 million
      tons <sup>(c)</sup></font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Brazil and
      Chile</font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Chlorinated
      organics</font></p></td>
    <td width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Silicones,
      paint stripping, pharmaceuticals and refrigerants</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.9 billion
      pounds</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Louisiana and
      Kansas</font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Potassium
      chemicals</font></p></td>
    <td width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Glass,
      fertilizers, cleaning products and rubber</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.3 million
      tons</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Alabama</font></p></td></tr>
  <tr>
    <td rowspan=2 width="25%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Ethylene
      dichloride (EDC)</font></p></td>
    <td rowspan=2 width="28%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Raw
      material for vinyl chloride monomer (VCM)</font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">2.1 billion
      pounds</font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Louisiana</font></p></td></tr>
  <tr>
    <td width="2%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.3 billion
      pounds <sup>(c)</sup></font></p></td>
    <td width="2%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Brazil</font></p></td></tr>
  <tr>
    <td colspan=6 valign=top>
      <p style='text-align:justify;margin-top:3.0pt;margin-bottom:0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b><i>Vinyls</i></b></font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">VCM</font></p></td>
    <td width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Precursor
      for PVC</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">6.2 billion
      pounds <sup>(b)</sup></font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Texas</font></p></td></tr>
  <tr>
    <td rowspan=2 width="25%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">PVC</font></p></td>
    <td rowspan=2 width="28%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Piping,
      insulation, flooring, medical and automotive products and packaging</font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;<sup>&nbsp;</sup></font></p></td>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">3.7 billion
      pounds <sup>(b)</sup></font></p></td>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Kentucky, New Jersey and
      Texas</font></p></td></tr>
  <tr>
    <td width="2%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.6 billion
      pounds</font></p></td>
    <td width="2%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Canada</font></p></td></tr>
  <tr>
    <td colspan=6 valign=top>
      <p style='text-align:justify;margin-top:3.0pt;margin-bottom:0pt'><font face="arial" color="#00009D" style="font-size:9pt"><b><i>Performance
      Chemicals</i></b></font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Chlorinated
      isocyanurates</font></p></td>
    <td width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Swimming
      pool sanitation and disinfecting products</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">131 million
      pounds</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Illinois and
      Louisiana</font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Resorcinol</font></p></td>
    <td width="28%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Tire
      manufacture, wood adhesives and flame retardant synergist</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">50 million
      pounds</font></p></td>
    <td width="2%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:silver 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Pennsylvania</font></p></td></tr>
  <tr>
    <td width="25%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='margin-left:12.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Sodium
      silicates</font></p></td>
    <td width="28%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;margin-right:25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Soaps,
      detergents and paint pigments</font></p></td>
    <td width="2%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="20%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">0.7 million
      tons</font></p> </td>
    <td width="2%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">&#150;</font></p></td>
    <td width="23%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial" style="font-size:8pt">Georgia, Ohio, Illinois,
      New Jersey, Texas and Alabama</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Estimated
      at December 31, 2006.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Includes
      gross capacity of the OxyVinyls partnership, owned 76 percent by Occidental.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Includes
      gross capacity of a joint venture in Brazil, owned 50 percent by Occidental.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CAPITAL
EXPENDITURES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
information on capital expenditures, see the information under the heading "Capital Expenditures" in the MD&amp;A section of this
report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>EMPLOYEES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
employed 8,886 people at December 31, 2006, 6,711 of whom were located in the United States. Occidental employed 4,429 people in oil
and gas operations and 3,160 people in chemical operations. An additional 1,297 people were employed in administrative and
headquarters functions. Approximately 900 United States-based employees and 250 foreign-based employees are represented by labor
unions.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has a long-standing policy to provide fair and equal employment opportunities to all people without regard to race, color, religion,
ethnicity, gender, national origin, disability, age, sexual orientation, veteran status or any other legally impermissible factor.
Occidental maintains diversity and outreach programs.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>4</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ENVIRONMENTAL
REGULATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
environmental regulation information, including associated costs, see the information under the heading "Environmental Liabilities
and Expenditures" in the MD&amp;A section of this report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>AVAILABLE
INFORMATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
makes the following information available free of charge through its web site at www.oxy.com:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Forms 10-K, 10-Q, 8-K
      and amendments to these forms as soon as reasonably practicable after they are filed electronically with the Securities and
      Exchange Commission (SEC);</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Other SEC filings,
      including Forms 3, 4 and 5; and</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Corporate governance
      information, including its corporate governance guidelines, board-committee charters and Code of Business Conduct. (See Part
      III Item 10 of this report for further information.)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
1A&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Volatile
global commodity pricing strongly affects Occidental&#146;s results of operations.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
financial results typically correlate closely to the volatile prices it obtains for its commodities. Drilling and exploration
activity levels, inventory levels, production disruptions, the actions of OPEC (influencing prices or limiting Occidental's
production), competing fuel prices, price speculation, changes in consumption patterns, weather and geophysical and technical
limitations affect the supply of oil and gas and contribute to price volatility.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Demand,
and consequently, the price obtained, for Occidental&#146;s chemical products correlate strongly to the health of the global
economy, as well as industry expansion cycles. Occidental also depends on feedstocks and energy to produce chemicals, both of which
are commodities subject to significant price fluctuations.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Occidental&#146;s
oil and gas business operates in highly competitive environments, which affects, among other things, its profitability and its
ability to grow production and replace reserves.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
future oil and gas production and its results of operations depend, in part, on its ability to profitably acquire, develop or find
additional reserves. Over the past several years Occidental increasingly has replaced reserves through acquisitions. Occidental has
many competitors, some of which are larger and better funded, may be willing to accept greater risks or have special competencies.
Industry competition for reserves may influence Occidental to:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">shift toward higher
      risk exploration activity;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">pay more for
      reinvestment opportunities;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">purchase lesser
      quality properties; or</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">delay expected
      reserve replacement efforts.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition, rising exploration and development activity in the industry generally increases the competition for and costs of, and
delays access to, services needed to increase production.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Governmental
actions and political instability may affect Occidental&#146;s results of operations.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
domestic and foreign oil and gas business is subject to the decisions of many governments and political interests. As a result,
Occidental faces risks of:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">changes in laws and
      regulations, including those related to taxes, royalty rates, permitted production rates, import, export and use of products,
      environmental protection and climate change, all of which may increase costs;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">expropriation or
      reduction of entitlements to produce hydrocarbons; and</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">refusal to extend
      exploration, production or development contracts.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
may experience adverse consequences, such as risk of loss or production limitations, because certain of its foreign operations are
located in countries occasionally affected by political instability, armed conflict, terrorism, insurgency, civil unrest, security
problems, restrictions on production equipment imports and sanctions that prevent continued operations. Exposure to such risks may
increase as a greater percentage of Occidental&#146;s future oil and gas production comes from foreign sources.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Occidental&#146;s
businesses may experience uninsured catastrophic events.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
occurrence of natural disasters, such as earthquakes, hurricanes and floods, in locations where Occidental operates and events such
as well blowouts, oilfield fires, and industrial accidents may affect Occidental&#146;s businesses. Third-party insurance may not
provide adequate coverage or Occidental may be self-insured with respect to the related losses.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Occidental&#146;s
reserves are based on professional judgments and may be subject to revision.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Calculations
of reserves depend on estimates concerning reservoir characteristics and recoverability, as well as oil and gas prices, capital
costs and operating costs. If Occidental were required to make unanticipated significant negative reserve revisions, its prospects
and stock price may be adversely affected.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Occidental
may incur significant losses in exploration or cost overruns in development efforts.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
may misinterpret geologic or engineering data, encounter unexpected geologic conditions or find reserves of disappointing quality or
quantity, which may result in significant losses on exploration or development efforts. Occidental bears the risks of project delays
and cost overruns due to escalating costs for materials and labor, equipment failures, approval delays, construction delays, border
disputes and other associated risks.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>5</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><b><i>Occidental
faces risks associated with its mergers, acquisitions and divestitures.</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
merger, acquisition and divestiture activities carry risks that it may: not fully realize anticipated benefits due to delays,
miscalculation of reserves or production or changed circumstances; bear unexpected integration costs or experience other integration
difficulties; experience share price declines based on the market&#146;s evaluation of the activity; assume or retain liabilities
that are greater than anticipated; or be unable to resell acquired assets as planned or at planned prices.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Information
related to competition, foreign operations, litigation, environmental matters, derivatives and market risks, and oil and gas reserve
estimation fluctuations appears under the headings: Business and Properties&nbsp;&#151;&nbsp;Oil &amp; Gas
Operations&nbsp;&#151;&nbsp;Competition and Sales and Marketing;" MD&amp;A&nbsp;&#151;&nbsp;"Oil &amp; Gas
Segment&nbsp;&#151;&nbsp;Business Review&nbsp;," and "&#151;&nbsp;Industry Outlook" and "Chemical Segment&nbsp;&#151;&nbsp;Business
Review," and "&nbsp;&#151;&nbsp;Industry Outlook," "Lawsuits, Claims, Commitments, Contingencies and Related Matters,"
"Environmental Liabilities and Expenditures," "Foreign Investments&#148; and "Critical Accounting Policies and Estimates," and
"Derivative Activities and Market Risk."</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
1B&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>None.</font></p>


<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
3&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
information regarding legal proceedings, see the information in Note 9 to the Consolidated Financial Statements, which is
incorporated herein by reference.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>An OPC
subsidiary is engaged in discussions with the Texas Commission on Environmental Quality (TCEQ) to voluntarily resolve alleged
environmental law violations. The alleged violations include exceeding emissions limitations, and failing to meet operating,
reporting and recordkeeping requirements relating to a natural gas processing plant in west Texas acquired by the subsidiary in
2005. The TCEQ seeks an administrative penalty of approximately $200,000 although the subsidiary expects to resolve the allegations
for less.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
4&nbsp;&nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>No
matters were submitted to a vote of Occidental&#146;s security holders during the fourth quarter of 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>EXECUTIVE
OFFICERS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
current term of employment of each executive officer of Occidental will expire at the May 4, 2007 organizational meeting of the
Board of Directors or when a successor is selected. The following table sets forth the executive officers and significant employees
of Occidental:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="15%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Name</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Age at
        <br>February 27, 2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Positions
      with Occidental and Subsidiaries and Five-Year Employment History</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Dr. Ray R.
      Irani</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">72</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Chairman
      and Chief Executive Officer since 1990; President since 2005; Director since 1984; Member of Executive Committee and Dividend
      Committee.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Stephen I.
      Chazen</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">60</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Senior
      Executive Vice President since 2004; Chief Financial Officer since 1999; 1994-2004, Executive Vice President &#151; Corporate
      Development.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Donald P.
      de Brier</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">66</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Executive
      Vice President, General Counsel and Secretary since 1993.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Richard W.
      Hallock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">62</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Executive
      Vice President &#151; Human Resources since 1994.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">James M.
      Lienert</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">54</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Executive
      Vice President &#151; Finance and Planning since 2006; 2004-2006, Vice President; Occidental Chemical Corporation: 2004-2006,
      President; 2000-2002, Senior Vice President &#151; Basic Chemicals; OxyVinyls: 2002-2004, Senior Vice
      President.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">John W.
      Morgan</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">53</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Executive
      Vice President since 2001; 1998-2001, Executive Vice President &#151; Operations; Occidental Oil and Gas Corporation (OOGC):
      President &#151; Western Hemisphere since 2005; 2004, President; 2001-2004, Executive Vice President &#151; Worldwide
      Production.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">R. Casey
      Olson</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">53</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Executive
      Vice President since 2005; 2001-2005, Vice President; OOGC: President - Eastern Hemisphere since 2005; Occidental Development
      Company: 2004, President; Occidental Middle East Development Company: 2001-2003, President.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">James R.
      Havert</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">65</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Vice
      President and Treasurer since 1998.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Jim A.
      Leonard</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">57</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Vice
      President and Controller since 2005; 2000-2005, Senior Assistant Controller; OOGC: 2000-2005, Senior Vice President &#151;
      Finance.</font></p></td></tr>
  <tr>
    <td width="15%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">B. Chuck
      Anderson</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:center;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">47</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="66%" valign=top>
      <p style='text-align:left;margin-top:9.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:9pt">Occidental
      Chemical Corporation: President since 2006; 2004-2006, Executive Vice President &#151; Chlorovinyls; 2002-2004, Senior Vice
      President &#151; Basic Chemicals; 2000-2002, President &#151; OxyVinyls.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>6</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:13pt'><b>Part
II</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM 5&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR REGISTRANT'S
  COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND PURCHASES OF EQUITY SECURITIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>TRADING
PRICE RANGE AND DIVIDENDS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This
section incorporates by reference the quarterly financial data appearing under the caption "Quarterly Financial Data (Unaudited)"
after the Notes to the Consolidated Financial Statements and the information appearing under the caption "Liquidity and Capital
Resources" in the MD&amp;A section of this report. Occidental&#146;s common stock was held by 41,949 stockholders of record at
December 31, 2006, with an estimated 306,994 additional stockholders whose shares were held for them in street name or nominee
accounts. The common stock is listed and traded principally on the New York Stock Exchange. The quarterly financial data, which are
included in this report after the Notes to the Consolidated 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.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Occidental amended its Restated Certificate of Incorporation to increase the number of authorized shares of common stock to
1.1 billion. The par value per share remained unchanged.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>On August
1, 2006, Occidental effected a two-for-one stock split in the form of a stock dividend to shareholders of record as of that date
with distribution of the shares on August 15, 2006. The total number of authorized shares of common stock authorized for issuance
and associated par value per share were unchanged by this action. All share and per-share amounts have been adjusted to reflect this
stock split.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
the quarterly dividends declared for the common stock were $0.18 per share for the first two quarters of 2006 and $0.22 for the last
two quarters of 2006 ($0.80 for the year). On February 15, 2007, a quarterly dividend of $0.22 per share ($0.88 on an annualized
basis) was declared on the common stock, payable on April 15, 2007 to stockholders of record on March 9, 2007. The declaration of
future cash dividends is a business decision made by the Board of Directors from time to time, and will depend on Occidental&#146;s
financial condition and other factors deemed relevant by the Board.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SECURITIES
AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>All of
Occidental's equity compensation plans for its employees and non-employee directors, pursuant to which options, rights or warrants
may be granted, have been approved by the stockholders. See Note 12 to the Consolidated Financial Statements for further information
on the material terms of these plans.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following is a summary of the shares reserved for issuance as of December 31, 2006, pursuant to outstanding options, rights or
warrants granted under Occidental&#146;s equity compensation plans:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="28%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>Number of securities to
      be issued upon
        <br>exercise of outstanding options, warrants
        <br>and rights</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="24%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>Weighted-average
      exercise price
        <br>of outstanding options, warrants
        <br>and rights</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(c)</font></p></td>
    <td width="33%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>Number of securities
      remaining available for
        <br>future issuance under equity compensation
        <br>plans (excluding securities in column (a))</font></p></td></tr>
  <tr>
    <td colspan="2" style='border-bottom:black 1.0pt solid'>
      <p style='text-indent:0in;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" style='font-size:9pt'>12,852,466</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 1.0pt solid'>
      <p style='text-indent:0in;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" style='font-size:9pt'>$32.45</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 1.0pt solid'>
      <p style='text-indent:0in;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><font face="arial" style='font-size:9pt'>31,327,693
      *</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td colspan="2" valign=top>
      <p style='text-align:justify;margin-top:9.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>* Includes, with
      respect to:</font></p></td></tr>
  <tr>
    <td width="6%" valign=top>
      <p style='margin-left:3pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="94%" valign=top>
      <p style='text-align:justify;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>the 1995 Incentive
      Stock Plan, 571,438 shares reserved for issuance pursuant to deferred stock unit awards;</font></p></td></tr>
  <tr>
    <td width="6%" valign=top>
      <p style='margin-left:3pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="94%" valign=top>
      <p style='text-align:justify;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>the 2001 Incentive
      Compensation Plan, 2,406,382 shares at maximum payout level (1,203,191 at target level) reserved for issuance pursuant to
      outstanding performance stock awards, 758,410 shares reserved for issuance pursuant to restricted stock unit awards, 2,226,172
      shares reserved for issuance pursuant to deferred stock unit awards and 1,842 shares reserved for issuance as dividend
      equivalents on deferred stock unit awards; and</font></p></td></tr>
  <tr>
    <td width="6%" valign=top>
      <p style='margin-left:3pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>(c)</font></p></td>
    <td width="94%" valign=top>
      <p style='text-align:justify;margin-top:6.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>the 2005 Long-Term
      Incentive Plan, 396,640 shares at maximum payout level (198,320 at target level) reserved for issuance pursuant to outstanding
      performance stock awards, 2,392,114 shares reserved for issuance pursuant to restricted stock unit awards, 1,516,000 shares at
      maximum payout level (758,000 at target level) reserved for issuance pursuant to outstanding performance-based restricted
      share units and 367,736 shares reserved for issuance pursuant to deferred stock unit awards.</font></p></td></tr>
  <tr>
    <td colspan="2" valign=top>
      <p style='text-align:justify;margin-top:9.0pt;margin-bottom:0pt'><font face="arial" style='font-size:7pt'>Of the 21,894,150
      shares that are not reserved for issuance under the 2005 Long-Term Incentive Plan, approximately 14.5 million shares are
      available after giving effect to the provision of the plan that each award, other than options and stock appreciation rights,
      must be counted against the number of shares available for issuance as three shares for every one share covered by award.
      Subject to the share count requirement, not more than the approximate 14.5 million shares may be issued or reserved for
      issuance for options, rights and warrants as well as performance stock awards, restricted stock awards, performance restricted
      stock awards, stock bonuses and dividend equivalents.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>7</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SHARE
REPURCHASE ACTIVITIES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
share repurchase activities for the year ended December 31, 2006, were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Period</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
        <br>Number
        <br>of Shares
        <br>Purchased</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Average
        <br>Price
        <br>Paid
        <br>per Share</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      Number of Shares
        <br>Purchased as Part of
        <br>Publicly Announced
        <br>Plans or Programs <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Maximum
      Number of
        <br>Shares that May Yet be
        <br>Purchased Under the
        <br>Plans or Programs</font></p></td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>First
      Quarter 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,823,880</b></font></p></td>
    <td width="5%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 45.89</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,410,800</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Second
      Quarter 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15,252,546</b></font></p></td>
    <td width="5%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 49.05</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15,080,600</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Third
      Quarter 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,629,901</b></font></p></td>
    <td width="5%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 47.98</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,118,800</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='margin-left:9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>October
      1 - 31, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,421,400</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 45.64</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,421,400</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='margin-left:9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>November
      1 - 30, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>444,900</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 47.67</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>444,900</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='margin-left:9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>December
      1 - 31, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,994,301</b></font></p></td>
    <td width="5%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 49.85</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,847,300</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=top>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Fourth
      Quarter 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,860,601</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 48.05</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:gray 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,713,600</b></font></p></td>
    <td width="5%" style='border-bottom:gray 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="20%" style='border-bottom:black 2.25pt double' valign=top>
      <p style='margin-left:9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30,566,928</b></font></p></td>
    <td width="5%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$ 48.20</b></font></p></td>
    <td width="5%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29,323,800</b></font></p></td>
    <td width="5%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="15%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10,676,200</b></font></p></td>
    <td width="5%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(b,c)</sup></b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Amount
      includes shares purchased from the trustee of Occidental's defined contribution savings plan totaling 413,080 shares in the
      first quarter, 171,946 shares in the second quarter, 511,101 shares in the third quarter and 147,001 shares in
      December.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>In 2005,
      Occidental announced a common stock repurchase program. Occidental is authorized to repurchase 40 million shares of its common
      stock under the program.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>In
      February 2007, Occidental increased the number of shares authorized for its previously announced share repurchase program from
      40 million to 55 million.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>PERFORMANCE
GRAPH</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following graph compares the yearly percentage change in Occidental&#146;s cumulative total return on its common stock with the
cumulative total return of the Standard &amp; Poor's 500 Stock Index and with that of Occidental&#146;s peer group over the
five-year period ended on December 31, 2006. The graph assumes that $100 was invested in Occidental common stock, in the stock of
the companies in the Standard &amp; Poor's 500 Index and in a portfolio of the peer group companies weighted by their relative
market values each year and that all dividends were reinvested. The peer group used in the analysis consists of Anadarko Petroleum
Corporation, Apache Corporation, Chevron Corporation, ConocoPhillips, Devon Energy Corporation, ExxonMobil Corporation, Hess
Corporation and Occidental. The peer group changed from the prior year since certain companies which were included in the peer group
have been acquired.</font></p>

<p style='margin-top:6pt;margin-bottom:0pt;text-align:center'><img src="perfgraph.gif"></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="4%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="14%">&nbsp;</td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><u>12/31/2001</u></font></p></td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><u>12/31/2002</u></font></p></td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><u>12/31/2003</u></font></p></td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><u>12/31/2004</u></font></p></td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><u>12/31/2005</u></font></p></td>
    <td colspan=2 valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b><u>12/31/2006</u></b></font></p></td></tr>
  <tr>
    <td width="4%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="symbol1.gif"></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="line1.gif"></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Occidental</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$100</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$111</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$170</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$240</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$334</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$415</b></font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="4%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="symbol2.gif"></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="line2.gif"></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Peer
      Group</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>100</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>88</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>111</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>144</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>172</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>225</b></font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="4%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="symbol3.gif"></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><img src="line3.gif"></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>S&amp;P
      500</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>100</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>78</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>100</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>111</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>117</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>135</b></font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td  colspan="15" valign=bottom>
      <p style='text-align:justify;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The
      information provided in this Performance Graph shall not be deemed "soliciting material" or "filed" with the Securities and
      Exchange Commission or subject to Regulation 14A or 14C under the Securities Exchange Act of 1934 (Exchange Act), other than
      as provided in Item 201 to Regulation S-K under the Exchange Act, or subject to the liabilities of Section 18 of the Exchange
      Act and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act
      except to the extent Occidental specifically requests that it be treated as soliciting material or specifically incorporates
      it by reference.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>8</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
6&nbsp;&nbsp;&nbsp;&nbsp;SELECTED FINANCIAL DATA</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Five-Year
Summary of Selected Financial Data</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>Dollar amounts in millions, except per-share amounts</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="49%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2003</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2002</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>RESULTS
      OF OPERATIONS</b> <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,661</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,597</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,879</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9,020</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,149</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,435</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,040</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,406</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,559</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,167</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,527</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>989</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:25.0pt;text-indent:-10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.20</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.25</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.04</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.03</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.55</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.90</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.55</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.24</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.99</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.31</font></p> </td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.86</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.45</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.20</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.97</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.30</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Core
      earnings <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,349</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,732</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,299</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,599</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,003</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FINANCIAL
      POSITION</b> <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26,108</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21,391</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>18,168</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16,548</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      debt, net and trust preferred securities <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,619</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,873</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,345</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,446</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,452</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Stockholders&#146;
      equity</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19,184</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,032</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,550</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,929</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,318</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>MARKET
      CAPITALIZATION</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>42,515</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32,129</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23,153</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16,349</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,750</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CASH
      FLOW</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      provided by operating activities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,353</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,337</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,878</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,074</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,100</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Capital
      expenditures</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,005</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,324</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,720</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,523</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,145</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      used by all other investing activities, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,378</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(837</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(708</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(608</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(551</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DIVIDENDS
      PER COMMON SHARE</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.80</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.645</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.55</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.52</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.50</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:10pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>BASIC
      SHARES OUTSTANDING</b> (thousands)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>852,550</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>806,600</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>791,159</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>767,887</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:10pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>752,380</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>See the
      MD&amp;A section of this report and the "Notes to Consolidated Financial Statements" for information regarding accounting
      changes, asset acquisitions and dispositions, discontinued operations, environmental remediation, other costs and other items
      affecting comparability.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For an
      explanation of core earnings and reconciliation to net income, see "Significant Items Affecting Earnings" in the MD&amp;A
      section of this report.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>On
      January 20, 2004, Occidental redeemed the trust preferred securities.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
7</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations (MD&amp;A) (Incorporating Item 7A)</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In this
report, the term "Occidental" refers to Occidental Petroleum Corporation (OPC) and/or one or more entities in which it owns a
majority voting interest (subsidiaries). Occidental&#146;s business is divided into two segments conducted through oil and gas
subsidiaries and their affiliates and chemical subsidiaries and their affiliates (OxyChem).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>STRATEGY</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
aims to generate superior total returns to stockholders using the following strategy:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Focus on large,
      long-lived oil and gas assets with long-term growth potential;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Maintain financial
      discipline and a strong balance sheet; and</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Manage the chemical
      segment to provide cash in excess of normal capital expenditures.</font></p></td></tr></table>

<p style='margin-top:4pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
prefers to own large, long-lived "legacy" oil and gas assets, like those in California and the Permian Basin, that tend to have
moderate decline rates, enhanced secondary and tertiary recovery opportunities and economies of scale that lead to cost-effective
production. Management expects such assets to contribute substantially to earnings and cash flow after invested capital.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
Occidental, maintaining financial discipline means investing capital in projects that management expects will generate
above-cost-of-capital returns throughout the business cycle. During periods of high commodity prices, Occidental expects to use most
of its cash flow after capital expenditures and dividends to improve the potential for future earnings by making such
investments.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
chemical business is not managed with a growth strategy. Capital is expended to operate the chemical business in a safe and
environmentally sound way, to sustain production capacity and to focus on projects</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>9</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>designed to lower
manufacturing costs. Asset acquisitions may be pursued when they are expected to enhance the existing core chlor-alkali and PVC
businesses. Historically, the chemical segment has generated cash flow exceeding its normal capital expenditure requirements.
Occidental intends to invest this cash mainly in strategically attractive assets.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Oil
and Gas</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Segment
Income</i></b></font>
  <br><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>($ millions)</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><img src="oilandgas.gif"></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The oil
and gas business seeks to add new oil and natural gas reserves at a pace ahead of production while keeping costs incurred for
finding and development among the lowest in the industry. The oil and gas business implements this strategy within the limits of the
overall corporate strategy primarily by:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Continuing to add
      commercial reserves through a combination of focused exploration and development programs conducted in and around
      Occidental&#146;s core areas, which are the United States, the Middle East/North Africa and Latin
      America;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Pursuing commercial
      opportunities in core areas to enhance the development of mature fields with large volumes of remaining oil by applying
      appropriate technology and advanced reservoir-management practices; and</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Maintaining a
      disciplined approach in buying and selling assets at attractive prices.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Over the
past several years, Occidental has strengthened its asset base within each of the core areas. Occidental has invested in, and
disposed of, assets with the goal of raising the average performance and potential of its assets. See "Oil and Gas Segment &#151;
Business Review" for a discussion of these changes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition, Occidental has continued to make capital contributions and investments in the Dolphin Project in Qatar and the UAE and in
Libya, and assumed operations in the Mukhaizna field in Oman for future growth opportunities, not for current production.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental acquired Vintage Petroleum, Inc. (Vintage) which it expects to provide growth in production, primarily from the Vintage
Argentina assets.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
overall performance during the past several years reflects the successful implementation of its strategy to enhance the development
of mature fields, beginning with the acquisition of the Elk Hills oil and gas field in California, followed by a series of purchases
in the Permian Basin in west Texas and New Mexico and the integration of the Vintage and Plains Exploration and Production Company
(Plains) operations acquired in 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At the
end of 2006, the Elk Hills and Permian assets made up 64 percent of Occidental&#146;s consolidated proven oil reserves and 43
percent of its consolidated proven gas reserves. On a barrels of oil equivalent (BOE) basis, they accounted for 59 percent of
Occidental&#146;s consolidated reserves. In 2006, the combined production from these assets averaged approximately 290,000 BOE per
day.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Chemical</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Segment
Income</i></b></font>
  <br><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>($ millions)</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><img src="chemical.gif"></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>OxyChem&#146;s
strategy is to be a low-cost producer so that it can maximize its cash flow generation. OxyChem concentrates on the chlorovinyls
chain beginning with chlorine, which is coproduced with caustic soda, and then chlorine and ethylene are converted, through a series
of intermediate products, into polyvinyl chloride (PVC). OxyChem's focus on chlorovinyls permits it to take advantage of economies
of scale.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Key
Performance Indicators</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>General</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Total return to
      stockholders;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Return on
      equity;</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Return on capital
      employed; and</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Other
      segment-specific measurements such as profit per unit produced, cost to produce each unit, cash flow per unit, cost to find
      and develop new reserves, reserve replacement percentage and other similar measures.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>10</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Debt
Structure</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
total debt and total debt-to-capitalization ratios are shown in the table below:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="46%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Date</font>
      <font face="arial narrow,arial" style='font-size:7pt'>($ amounts in millions)</font></p></td>
    <td width="8%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total
      Debt</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total
      Debt-to-Capitalization Ratio</font></p></td></tr>
  <tr>
    <td width="46%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12/31/02</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,759</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="24%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>43%</font></p></td></tr>
  <tr>
    <td width="46%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12/31/03</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,570</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="24%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>37%</font></p></td></tr>
  <tr>
    <td width="46%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12/31/04</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,905</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="24%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>27%</font></p></td></tr>
  <tr>
    <td width="46%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12/31/05</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,019</font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="24%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>17%</font></p></td></tr>
  <tr>
    <td width="46%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>12/31/06</b></font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="3%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,890</b></font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="24%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>13%</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>Includes
      trust preferred securities (redeemed January 20, 2004), natural gas delivery commitment (terminated in 2002), subsidiary
      preferred stock and capital lease obligations.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As
shown, Occidental&#146;s year-end 2006 total debt-to-capitalization ratio declined to 13 percent from the 43-percent level that
existed at the end of 2002. The decrease in the total debt-to-capitalization ratio in 2006 compared with 2002 resulted from total
debt reductions of 39 percent combined with an increase in stockholders' equity of 204 percent over the same period.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since the
second quarter of 2005, Occidental&#146;s long-term senior unsecured debt has been rated A- by Standard and Poor&#146;s Corporation,
A3 by Moody&#146;s Investors Service, A- by Fitch Ratings and A(Low) by Dominion Bond Rating Service. A security rating is not a
recommendation to buy, sell or hold securities, may be subject to revision or withdrawal at any time by the assigning rating
organization and should be evaluated independently of any other rating.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Return
on Equity</i></b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="46%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Annual
      2006 <sup>(a)</sup></font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="46%" valign=top style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:8pt">Three-Year
      Average 2004 - 2006 <sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="46%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>24%</b></font></p></td>
    <td width="8%">&nbsp;</td>
    <td width="46%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>30%</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:7pt">(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:7pt">The
      Return on Equity for 2006 was calculated by dividing Occidental's 2006 earnings applicable to common stock by the average
      equity balance in 2006.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:7pt">(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style="font-size:7pt">The
      three-year average Return on Equity was calculated by dividing the average earnings applicable to common stock over the
      three-year period 2004-2006 by the average equity balance over the same period.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has focused on achieving top quartile return on equity. In 2006, Occidental's return on equity was 24 percent and the three-year
average return on equity was 30 percent. During the same three-year period, Occidental increased its stockholders&#146; equity by
142 percent and its quarterly dividend by 60 percent while its stock price increased by 131 percent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>OIL
AND GAS SEGMENT</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Business Environment</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Oil and
gas prices are the major variables that drive the industry&#146;s short and intermediate term financial performance. Average yearly
oil prices strengthened in 2006 over 2005 levels but ended the year even with 2005 year-end levels. During the year, Occidental
experienced an increase in its price differential between the average West Texas Intermediate (WTI) price and Occidental's realized
prices. Occidental&#146;s realized price as a percentage of WTI was approximately 85 percent and 87 percent for 2006 and 2005,
respectively. Prices and differentials can vary significantly, even on a short-term basis, making it difficult to forecast realized
prices. The average WTI market price for 2006 was $66.23 per barrel compared with $56.56 per barrel in 2005. Occidental's average
realized price for oil in 2006 was $56.57, compared with $49.18 in 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
average NYMEX domestic natural gas prices decreased approximately 4 percent from 2005. For 2006, NYMEX gas prices averaged $7.82/Mcf
compared with $8.11/Mcf for 2005.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Business
Review</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>All
production and reserve figures are net to Occidental unless otherwise specified.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Worldwide
Production</i></b></font>
  <br><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>(thousands BOE/day)</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><img src="worldwide.gif"></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Acquisitions</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2006, Occidental completed the merger of Vintage into a wholly-owned Occidental subsidiary. As a result, Occidental acquired
assets in Argentina, California, Yemen, Bolivia and the Permian Basin in Texas. See the applicable sections below for further
information. Occidental paid $1.3 billion in cash to former Vintage shareholders, issued approximately 56 million shares of
Occidental common stock, which were valued at $2.1 billion, and assumed Vintage&#146;s debt, which had an estimated fair value of
$585 million at closing. During 2006, Occidental divested a portion of Vintage&#146;s assets for consideration of approximately $1.0
billion.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, Occidental acquired oil and gas assets from Plains for $859 million. The principal properties acquired are adjacent
to Occidental&#146;s existing operations in California and the Permian Basin in west Texas.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
production from the Vintage acquisition averaged 53,000 BOE per day in 2006. During the fourth quarter of 2006, production from the
Plains assets averaged 6,000 BOE per day.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Elk
Hills</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
operates the Elk Hills oil and gas field in the southern portion of California&#146;s San Joaquin Valley with an approximate
78-percent interest. The field was acquired in 1998 for $3.5 billion and is the largest producer of gas in California. In 2006,
Occidental made additional acquisitions of oil and gas producing properties near the field for approximately $434 million. Most of
these properties were obtained as part of the acquisition from Plains discussed above. Oil and gas production in 2006 from these
properties and the field was approximately 91,000 BOE per day. During 2006, Occidental performed infill drilling, field extensions
and recompletions identified by advanced reservoir characterization techniques resulting in 277 new wells being drilled and 479
wells being worked over. In addition, an air separation unit was installed to enhance</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>11</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>oil recovery with nitrogen
injection. As a result of these activities and acquisitions, Occidental was able to maintain production at 2005 levels. Since its
acquisition, total Elk Hills oil and gas production has been approximately 301 million BOE. At the end of 2006, the property had an
estimated 484 million BOE of proved reserves, compared to the 425 million BOE that were recorded at the time of the
acquisition.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Permian
Basin</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
Permian Basin extends throughout southwest Texas and southeast New Mexico and is one of the largest and most active oil basins in
the United States, with the entire basin accounting for approximately 18 percent of the total United States oil production.
Occidental is the largest producer in the Permian Basin with an approximate 16-percent net share of the total Permian Basin oil
production. Occidental also produces and processes natural gas and natural gas liquids (NGL) in the Permian Basin.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Most of
Occidental's Permian Basin interests were obtained through the acquisition of Altura in 2000 for approximately $3.6 billion. In 2005
and 2006, Occidental made several additional acquisitions of oil and gas producing property interests for approximately $1.7 billion
and $290 million (including approximately $175 million related to the acquisition of Vintage and the property acquisitions from
Plains), respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
total share of Permian Basin oil, gas and NGL production averaged 199,000 BOE per day in 2006 compared to 189,000 BOE per day in
2005. At the end of 2006, Occidental's Permian Basin properties had 1.2 billion BOE in proved reserves. Occidental's Permian Basin
production is diversified across a large number of producing areas. The largest producing areas in 2006 included Wasson San Andres,
Slaughter, Levelland, North Cowden, Wasson Clearfork and Salt Creek, which contributed 20 percent, 9 percent, 5 percent, 4 percent,
4 percent and 4 percent, respectively, to Occidental&#146;s 2006 Permian BOE production.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
interests in the Permian Basin offer additional development and exploitation potential. During 2006, Occidental drilled
approximately 260 wells on its operated properties and participated in wells drilled on outside operated interests. Occidental
conducted significant development activity on eight carbon dioxide
(CO</font><font face="arial" style='font-size:5pt'>2</font><font face="arial" style='font-size:9pt'>) projects during 2006,
including implementation of new floods and expansion of existing
CO</font><font face="arial" style='font-size:5pt'>2</font><font face="arial" style='font-size:9pt'> floods. Occidental also focused
on improving the performance of existing wells. Occidental had an average of 122 well service units working in the Permian area
during 2006 performing well maintenance and workovers.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Approximately
60 percent of Occidental&#146;s Permian Basin oil production is from fields that actively employ the application of
CO</font><font face="arial" style='font-size:5pt'>2</font><font face="arial" style='font-size:9pt'> flood technology, an enhanced
oil recovery (EOR) technique. This involves injecting
CO</font><font face="arial" style='font-size:5pt'>2</font><font face="arial" style='font-size:9pt'> into oil reservoirs where it
acts as a solvent, causing the oil to flow more freely into producing wells. These
CO</font><font face="arial" style='font-size:5pt'>2</font><font face="arial" style='font-size:9pt'> flood operations make Occidental
a world leader in the application of this technology.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Vintage
California</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental combined its California properties acquired from Vintage and Plains with existing California properties (excluding the
Elk Hills, THUMS and Tidelands Oil Production Company (Tidelands) properties). The combined properties produce oil and gas from more
than 50 fields, spread over 500 miles mainly in the Ventura, San Joaquin and Sacramento basins. Oil and gas average production in
2006 was approximately 17,000 BOE per day. At the end of 2006, the combined properties had an estimated 128 million BOE of proved
reserves.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>THUMS</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
purchased THUMS, the field contractor for an oil production unit offshore Long Beach, California, in 2000. Since then, Occidental
has implemented a successful development plan. Occidental's share of production from THUMS is subject to contractual arrangements
similar to a production sharing contract (PSC), whereby Occidental&#146;s share of production varies inversely with oil prices. For
2006, production from THUMS averaged 19,000 BOE per day.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Gulf
of Mexico</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has a one-third interest in the deep-water Horn Mountain oil field, which is Occidental's only property in the Gulf of Mexico. BP
p.l.c. (BP) is the operator. For 2006, Occidental's production at Horn Mountain averaged 13,000 BOE per day.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Hugoton
and Other</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
owns a large concentration of gas reserves, production interests and royalty interests in the Hugoton area of Kansas and
Oklahoma.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Also,
Occidental has over 28,000 net acres in the Piceance Basin in western Colorado. During 2006, Occidental drilled 43 development wells
and started operation of a newly constructed gas processing facility.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
acquired Tidelands in 2006. Tidelands is the field contractor for an onshore oil production unit in Long Beach, California.
Occidental&#146;s share of production from Tidelands is subject to contractual arrangements similar to a PSC, whereby
Occidental&#146;s share of production varies inversely with oil prices. Tidelands also is subject to cost-plus contracts.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
Hugoton and other operations produced 26,000 BOE per day.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Middle
East/North Africa</i></b></font>
  <br><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Dolphin Project</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
investment in the Dolphin Project, which was acquired in 2002, consists of two separate economic interests held through two separate
legal entities. One entity, OXY Dolphin E&amp;P, LLC, owns a 24.5-percent undivided interest in the assets and liabilities
associated with a Development and Production Sharing Agreement (DPSA) with the Government of Qatar to develop and produce natural
gas and condensate in Qatar&#146;s North Field for 25 years from the start of production, with a provision to request a 5-year
extension. The purchase price of the undivided working interest in the DPSA was approximately $60 million and was recorded in
property, plant &amp; equipment (PP&amp;E). This undivided interest is proportionately consolidated in Occidental's financial
statements.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A second
entity, OXY Dolphin Pipeline, LLC, owns 24.5 percent of the stock of Dolphin Energy Limited (Dolphin Energy). The purchase price of
Dolphin Energy stock totaled approximately $250 million and was recorded as an equity investment.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>12</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Dolphin
Energy is the operator under the DPSA on behalf of the three DPSA participants, including Occidental. Dolphin Energy also has the
rights to build, own and operate a 260-mile-long, 48-inch natural gas pipeline, which will transport dry natural gas from Qatar to
the UAE.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
Dolphin Project is expected to cost approximately $4.8 billion in total, including investments in the local UAE eastern gas
distribution system and the Al Ain-Fujairah pipelines, which were added to improve the natural gas distribution system but were not
contained in the original scope of the Dolphin Project. Occidental expects to invest approximately $1.2 billion of this total. The
project is being financed by a combination of participant investment and project financing. During 2007, Occidental expects to spend
a combined total of approximately $185 million for the gas exploration and development activity and the investment in Dolphin
Energy, compared to $361 million in 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2003,
the Government of Qatar approved the final field development plan for the Dolphin Project. Construction of an onshore gas processing
and compression plant at Ras Laffan in Qatar commenced in 2004 and is continuing. The pipeline is projected to start up with
temporary third-party gas volumes in the first quarter of 2007. The gas volumes produced under the Dolphin DPSA are expected to
replace the temporary third-party gas commencing with the start-up of the onshore gas plant in mid-2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Based on
existing supply contracts, the Dolphin Project is expected to export approximately 2.0 billion cubic feet (Bcf) of natural gas per
day (plus associated liquids and byproducts). However, the pipeline is expected to have capacity to transport up to 3.2 Bcf of
natural gas per day. Demand for natural gas in the UAE and Oman continues to grow and Dolphin Energy&#146;s customers have requested
additional gas supplies. To help fulfill this growing demand, Dolphin Energy will continue to pursue an agreement to secure an
additional supply of gas from Qatar.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>To date,
Occidental has recorded 265 million BOE of proved oil and gas reserves for the Dolphin Project DPSA activity. Proved developed,
non-producing oil and gas reserves are 133 million BOE, with the rest included in proved undeveloped reserves. No revenue or
production costs were recorded in 2006 for the Dolphin Project gas exploration and development activity.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Qatar</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition to the Dolphin Project, Occidental participates in two production projects in Qatar: Idd El Shargi North Dome (ISND) and
Idd El Shargi South Dome (ISSD). Occidental continues to target the development and recovery of additional reserves in both the ISND
and ISSD fields by applying advanced drilling systems and improved reservoir management techniques. Capital expenditures in Qatar
for the ISSD and ISND projects were $257 million in 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
net share of combined production from the two fields averaged 43,000 barrels per day in 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Yemen</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
owns interests in four blocks in Yemen, including a 38-percent direct-working interest in the Masila fields, a 40.4-percent interest
in the East Shabwa field, comprising a 28.6-percent direct-working interest and an 11.8-percent equity interest in an unconsolidated
entity, and a 75-percent interest in Block S-1, which was part of the Vintage acquisition. Average production was 30,000 barrels of
oil per day in 2006, with 19,000 coming from Masila, 6,500 from East Shabwa and the remainder from Block S-1. In addition,
Occidental owns and operates an 80-percent working interest in Block 20 and is finalizing the PSC for Block 75, which was acquired
in an exploration bid round.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Oman</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
Oman business includes Block 9 and Block 27, where it holds a 65-percent working interest in each, Block 53, where it holds a
45-percent working interest and Block 54, where it holds a 70-percent working interest. Occidental is the operator of all four
blocks where production averaged 23,000 BOE per day in 2006, with 19,000 BOE coming from Block 9, 3,000 BOE from Block 53 and the
remainder from Block 27. The Block 9 agreement provides for two ten-year extensions and Occidental has agreed with the Government of
Oman to the first ten-year extension through December 7, 2015.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
(and its Block 53 partners) signed a new PSC for the Mukhaizna field with the Government of Oman in 2005. In September 2005,
Occidental assumed operations of the Mukhaizna field, where it holds a 45-percent working interest. The Mukhaizna field, located in
Oman&#146;s south central interior, was discovered in 1975 and was brought into production in 2000. Primary production peaked in the
same year at 15,000 barrels of oil per day and by September 2005, had declined to 8,500 barrels of oil per day. By the end of 2006,
Occidental had increased gross production to 11,000 barrels of oil per day. Occidental plans to use horizontal well steamflood
technology to steadily increase production.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
October 2005, Occidental received approval for development of the Khamilah field in Block 27. The exploitation term of the agreement
is 30 years beginning in September 2005. Occidental began production in June 2006, well ahead of the planned start-up timing of
October 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
(and its Block 54 partners) signed a new PSC for Block 54 with the Government of Oman in June 2006. The initial exploration phase is
four years beginning in July 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In March
2004, Occidental began selling gas from Block 9 to the Government of Oman under a gas sales agreement. Under the agreement,
Occidental (and its Block 9 partner) must supply approximately 114 MMcf per day of natural gas until December 31, 2007.
Occidental&#146;s minimum delivery obligation is approximately 89 percent of the expected average gross production. In 2006,
Occidental (and its partner) supplied an average of approximately 116 MMcf per day of natural gas under the agreement. As of
December 31, 2006, the gross proved gas reserves from Block 9 comprise approximately 590 percent of the minimum gas still to be
delivered under the agreement.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Libya</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
suspended all activities in Libya in 1986 as a result of economic sanctions imposed by the United States government. During the
imposition of sanctions, Occidental derived no economic benefit from its Libyan interests. In 2004, the United States government
lifted all of the principal economic sanctions against Libya.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>13</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006, the United States
effectively eliminated the last of the economic sanctions.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
the Libyan authorities approved the terms of Occidental&#146;s participation in the assets that it left in 1986. This re-entry
agreement allowed Occidental to return to its Libyan operations on generally the same terms in effect when activities were
suspended. Those assets consist of three producing contracts in the Sirte Basin and four exploration blocks. Occidental paid
approximately $133 million in re-entry bonuses, capital adjustment and work-in-progress payments and is required to pay $10 million
per year while it continues to operate in Libya, as reimbursements for past development costs associated with these assets. In
addition, Occidental committed to spend $90 million over the next five years in the four exploration blocks. Currently,
Occidental&#146;s rights in the producing fields extend through 2009 and early 2010. Occidental had its first lifting from its
Libyan operations in September 2005 and production during 2006 averaged 23,000 BOE per day.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Separately,
in early 2005, Occidental participated in the EPSA IV exploration bid round in Libya. Occidental successfully bid on nine of the 15
areas available. Occidental is the operator for five onshore areas and has a 90-percent exploration working interest in each area.
In addition, Occidental holds a 35-percent exploration working interest in four offshore areas. Woodside Petroleum Ltd. is the
operator for the offshore areas. Occidental paid approximately $90 million in exploration lease bonuses for these nine new areas and
committed to perform a minimum exploration work program valued at $125 million over the commitment period.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
approximately 10,000 kilometers of seismic data was acquired for the onshore areas which will provide the basis for analysis and
selection of the initial exploration prospects to be drilled by Occidental. Onshore seismic acquisition and analysis activity is
planned to continue into 2007. In the offshore areas, the operator acquired approximately 9,400 kilometers of seismic data in
preparation for the planned 2007 drilling program.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
November 2006, Occidental commenced drilling of the first exploration well in the onshore program, which is undergoing evaluation. A
second rig is expected to begin drilling in the first quarter of 2007 and a substantial portion of the exploration drilling
obligations is expected to be completed during the next 18-month period.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Other
Eastern Hemisphere</i></b></font>
  <br><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Pakistan</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
holds oil and gas working interests, that vary from 25 to 50 percent, in four Badin Blocks in Pakistan. BP is the operator.
Occidental&#146;s share of production was approximately 17,000 BOE per day in 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Russia</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2007, Occidental sold its 50-percent interest in the Vanyoganneft joint venture to TNK-BP for approximately $485 million. At
year-end, Occidental's proved Vanyoganneft reserves were an estimated 33 million BOE and its production was approximately 27,000 BOE
per day in 2006. Occidental recorded a gain of approximately $400 million resulting from the sale in the first quarter of
2007.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Latin
America</i></b></font>
  <br><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Argentina</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Substantially
all of Occidental&#146;s Argentina assets were obtained as part of the acquisition of Vintage in 2006. The assets consist of 22
concessions, 19 of which Occidental operates with a 100-percent working interest, located in the San Jorge Basin in Southern
Argentina and the Cuyo Basin and Neuqu&#233;n Basin in Western Argentina.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>During
2006, Occidental drilled 135 new wells and performed a number of recompletions and well repairs. Occidental expects to significantly
increase production over the next five years through aggressive drilling, waterflooding and EOR projects. Occidental is planning to
drill 190 wells and implement a number of waterflood projects in 2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
share of production from Argentina averaged 36,000 BOE per day in 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Bolivia</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental&#146;s operating subsidiary acquired working interests in four Blocks located in the Tarija, Chuquisaca and Santa Cruz
regions of Bolivia as part of the Vintage acquisition. Production for 2006 was approximately 3,000 BOE per day. In 2006, Bolivia
initiated a nationalization process pursuant to which Occidental's operating subsidiary entered into two new operations contracts
with commercial terms that, among other things, provide Bolivia greater operational control and control over the commercialization
of hydrocarbons.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Colombia</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
is the operator of the Ca&#241;o Lim&#243;n field where its share of production averaged 28,000 barrels of oil per day in 2006.
Colombia's national oil company, Ecopetrol, operates the Ca&#241;o Lim&#243;n-Cove&#241;as oil pipeline and marine-export terminal.
The pipeline transports oil produced from the Ca&#241;o Lim&#243;n field for export to international markets.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Ecopetrol approved development of the Caricare field, an exploration discovery under the Rondon Association Contract, adjacent to
Ca&#241;o Lim&#243;n. Production from this field, where Occidental holds a 35-percent working interest, commenced in May 2006.
Production from the field and two adjacent fields was 4,000 BOE per day in 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental signed a new agreement with Ecopetrol for an EOR project in the La Cira-Infantas field, located in central Colombia. In
December 2006, Occidental completed the second pilot phase and agreed with Ecopetrol to enter into a third and commercial phase of
the project. In 2006, Occidental&#146;s share of production was 1,000 BOE per day. Production from La Cira-Infantas is transported
by the Ecopetrol pipeline and sold to an Ecopetrol refinery.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Additionally,
Occidental holds various working interests in eight exploration blocks.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>14</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Ecuador</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Ecuador terminated Occidental's contract for the operation of Block 15, which comprised all of its oil-producing operations in
the country, and seized Occidental's Block 15 assets. The process resulting in this action began shortly after Occidental prevailed,
by unanimous decision of an international arbitration panel subsequently upheld by a London court, in a legal dispute over tax
refunds that Ecuador wrongfully withheld. Occidental immediately filed an arbitration claim against Ecuador, seeking redress for
illegal confiscation of the Block 15 operations with the International Centre for Settlement of Investment Disputes in Washington,
D.C., invoking the protections of the U.S. - Ecuador Bilateral Investment Treaty. As a result of the seizure, Occidental classified
its Block 15 operations as discontinued operations. In 2006, Occidental recorded a net after-tax charge of $296 million in
discontinued operations. This amount consists of after-tax charges for the write-off of the investment in Block 15 in Ecuador, as
well as ship-or-pay obligations entered into with respect to the Oleoducto de Crudos Pesados, Ltd. (OCP) pipeline in Ecuador to ship
oil produced in Block 15, partially offset by $109 million after-tax income from operations for the first five months of 2006.
Occidental&#146;s Block 15 assets and liabilities are classified as assets and liabilities of discontinued operations on the
consolidated balance sheets on a retrospective basis.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition, Occidental has a 14-percent interest in the OCP oil export pipeline. See also "Off-Balance-Sheet Arrangements &#151;
Ecuador" for further information about the OCP pipeline.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Production-Sharing
Contracts</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
conducts its operations in Qatar, Oman and Yemen under PSCs and, under such contracts, receives a share of production to recover its
costs and an additional share for profit. In addition, Occidental's share of production from THUMS and Tidelands are subject to
contractual arrangements similar to a PSC. Occidental&#146;s share of production from these contracts decreases when oil prices rise
and increases when oil prices decline. Overall, Occidental&#146;s net economic benefit from these contracts is greater at higher oil
prices.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Proved
Reserves - Evaluation and Review Process</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A senior
corporate officer of Occidental is responsible for the internal audit and review of its oil and gas reserves data. In addition, a
Corporate Reserves Review Committee (Reserves Committee) has been established, consisting of senior corporate officers, to monitor
and review Occidental's oil and gas reserves. The Reserves Committee reports to the Audit Committee of Occidental's Board of
Directors periodically throughout the year. Occidental has retained Ryder Scott Company, L.P. (Ryder Scott), independent petroleum
engineering consultants, to review its annual oil and gas reserve estimation processes since 2004.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Again in
2006, Ryder Scott has compared Occidental&#146;s methods and procedures for estimating oil and gas reserves to generally accepted
industry standards and has reviewed certain data, methods and procedures used in estimating reserves volumes, the economic
evaluations and reserves classifications. Ryder Scott reviewed the specific application of such methods and procedures for a
selection of oil and gas fields considered to be a valid representation of Occidental&#146;s total reserves portfolio. In 2006,
Ryder Scott reviewed 10.5 percent of Occidental&#146;s oil and gas reserves. Since being engaged in 2004, Ryder Scott has reviewed
Occidental&#146;s reserve estimation methods and procedures for approximately 49 percent of Occidental&#146;s oil and gas
reserves.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Based on
this review, including the data, technical processes and interpretations presented by Occidental, Ryder Scott has concluded that the
methodologies used by Occidental in preparing the relevant estimates generally comply with current Securities and Exchange
Commission (SEC) standards. Ryder Scott has not been engaged to render an opinion as to the reserves volumes reported by
Occidental.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Proved
Reserve Additions</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
consolidated subsidiaries had proved reserves at year-end 2006 of 2,869 million BOE, as compared with the year-end 2005 amount of
2,566 million BOE. Additionally, Occidental&#146;s investments in other interests had proved reserves of 30 million and 45 million
BOE at year-end 2006 and 2005, respectively. The increase in the consolidated subsidiaries&#146; reserves from all sources was 518
million BOE, of which 289 million BOE were from proved developed reserves and 229 million BOE were from proved undeveloped
reserves.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Proved
developed reserves represent approximately 78 percent of Occidental&#146;s total proved reserves at year-end 2006 compared to 74
percent at year-end 2005.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Proved
Reserve Additions - Consolidated Subsidiaries - 2006</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="42%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      Millions of BOE</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Proved
        <br>Developed</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Proved
        <br>Undeveloped</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Proved
        <br>Total</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Revisions of
      previous estimates</font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(5</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>22</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>17</b></font></p></td>
    <td width="1%"></td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Improved
      Recovery</font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>40</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>101</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>141</b></font></p></td>
    <td width="1%"></td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Extensions
      and Discoveries</font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>22</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>12</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>34</b></font></p></td>
    <td width="1%"></td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Purchases</font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>232</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>94</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>326</b></font></p></td>
    <td width="1%"></td></tr>
  <tr>
    <td width="42%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total
      Additions</font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>289</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>229</b></font></p></td>
    <td width="2%"></td>
    <td width="17%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>518</b></font></p></td>
    <td width="1%"></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Proved
reserves consist of 78 percent crude oil and condensate and 22 percent natural gas.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Revisions
of Previous Estimates</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental added net reserves of 17 million BOE through revisions of previous estimates, primarily in Libya, the Dolphin Project and
Argentina, partially offset by negative revisions in the United States reflecting a reduction in gas prices. Oil price changes would
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 would reduce Occidental's share of proved reserves by approximately 9 million BOE. Conversely, if oil prices
dropped by $5 per barrel, Occidental's share of proved reserves would increase by a similar amount. Oil price changes would also
tend to affect the economic lives of proved reserves from other contracts, in a manner partially offsetting the PSC reserve volume
changes. Apart from the effects of product prices, Occidental's approach to interpreting technical data regarding oil and gas
reserves makes it more likely future reserve revisions will be positive rather than negative.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>15</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Improved
Recovery</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental added reserves of 141 million BOE through improved recovery. In the United States, improved recovery additions were 43
million BOE in the Permian Basin and 28 million BOE in the Elk Hills field. Foreign additions included 23 million BOE in Argentina
and 11 million BOE in Colombia. The Elk Hills operations employ infill drilling and both gas flood and water flood techniques. In
the Permian Basin, the increased reserves were primarily attributable to enhanced recovery techniques, such as drilling additional
CO</font><font face="arial" style='font-size:4pt'>2</font><font face="arial" style='font-size:9pt'> flood and water flood
wells.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Extensions
and Discoveries</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
obtains reserve additions from extensions and discoveries, which are dependent on successful exploitation programs. In 2006, as a
result of such programs, Occidental added reserves of 34 million BOE, consisting of 13 million BOE in the United States, 14 million
BOE in the Middle East/North Africa and 7 million BOE in Argentina. In western Colorado, Occidental added approximately 4 million
BOE from the extension of gas reserves, most of which will require additional development capital.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
success of improved recovery, extension and discovery projects depends on reservoir characteristics and technology improvements, as
well as oil and gas prices, capital costs and operating costs. Many of these factors are outside of management's control, and will
affect whether or not these historical sources of reserve additions continue at similar levels.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>Purchases
of Proved Reserves</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental purchased reserves of 326 million BOE, of which 143 million BOE were in the United States and 178 million BOE were in
Latin America. The Vintage acquisition added proved reserves of 160 million BOE in Argentina and 8 million BOE in Bolivia with the
remainder in the United States and Yemen, of which 66 percent were proved developed reserves. Occidental continues to add reserves
through acquisitions when properties are available at reasonable prices. Acquisitions are dependent on successful bidding and
negotiating of oil and gas contracts at attractive terms. As market conditions change, the available supply of properties may
increase or decrease accordingly.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Proved
Undeveloped Reserves</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
had proved undeveloped reserve additions of 207 million BOE resulting from improved recovery, extensions and discoveries and
purchases, primarily in Argentina, the Permian Basin and the Elk Hills field. Argentina provided 46 percent of this increase. These
proved undeveloped reserve additions were offset by reserve transfers of 275 million BOE to the proved developed category as a
result of 2006 development programs. The Dolphin Project transferred 133 million BOE to the proved developed category during 2006.
This transfer, along with other revisions, reduced the Dolphin Project's proved undeveloped reserves to 132 million BOE at December
31, 2006 from 250 million BOE at December 31, 2005. Overall, Occidental's proved undeveloped reserves decreased by 47 million BOE in
2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Industry
Outlook</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
petroleum industry is highly competitive and subject to significant volatility due to numerous market forces. Crude oil and natural
gas prices are affected by market fundamentals such as weather, inventory levels, competing fuel prices, overall demand and the
availability of supply.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Worldwide
oil prices in 2006 remained at or near historical highs during the first three quarters of the year, but fell in the fourth quarter.
Continued economic growth, resulting in increased demand, and concerns about supply availability, could result in continued high
prices. A lower demand growth rate could result in lower crude oil prices.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Oil
prices have significantly affected profitability and returns for Occidental and other upstream producers. Oil prices cannot be
predicted with any certainty. The WTI price has averaged approximately $33 per barrel over the past ten years. However, the industry
has historically experienced wide fluctuations in prices. During 2006, Occidental experienced an increase in its price differential
of the average WTI price over Occidental's realized prices. See the "Oil and Gas Segment &#151; Business Environment" section above
for further information.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>While
local supply/demand fundamentals are a decisive factor affecting domestic natural gas prices over the long term, day-to-day prices
may be more volatile in the futures markets, such as on the NYMEX and other exchanges, making it difficult to forecast prices with
any degree of confidence. Over the last ten years, the NYMEX gas price has averaged approximately $4.60 per Mcf.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CHEMICAL
SEGMENT</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Business Environment</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
chemical segment results improved in 2006 due to better margins despite higher feedstock costs. OxyChem also benefited from the
mid-year 2005 acquisition of two basic chemical manufacturing facilities from Vulcan Materials Company (Vulcan) and realized
substantial synergies and higher sales volumes.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Business
Review</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Basic Chemicals</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>During
2006, demand and pricing for basic chemical products generally remained strong while energy costs fell, which enabled OxyChem to
realize above average margins. OxyChem&#146;s chlor-alkali operating rate for 2006 was 91 percent, just slightly above the industry
average operating rate of 90 percent. Industry demand for liquid caustic soda in 2006 was virtually flat compared to the prior year.
Demand increased in the refining industry but was offset by reduced demand primarily in the organics and inorganics chemical market
segments. Industry pricing for caustic soda started the year strong, but subsequently softened throughout the first three quarters
of 2006. Caustic soda supply tightened in the fourth quarter due to lower chlorine demand resulting from a weakening vinyls sector
and lower imports of caustic soda. This led to caustic soda price stabilization in the fourth quarter.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>16</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Vinyls</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The PVC
industry realized record level pricing and margins for 2006. Ethylene cost increases of 9 percent were partially offset by lower
natural gas prices. Total PVC industry-wide demand in 2006 was 3 percent lower as compared with 2005. OxyChem operated its PVC
facilities at an average operating rate of 82 percent for 2006, compared to the North American industry average of 87
percent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Industry
Outlook</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental's chemical business core earnings increased by 16 percent compared to 2005, primarily due to the continued strong United
States economy, higher sales volumes, largely due to the full year impact of the Vulcan operating assets, and improving
margins.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Future
performance will depend on global economic activity, the competitiveness of the United States in the world economy, feedstock and
energy pricing, and the impact of additional production capacity entering the market place.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Basic
Chemicals</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Forecasts
of a slowing economy offset by a stabilizing residential construction market in 2007 are expected to result in demand levels similar
to average 2006 levels. Despite first quarter pressure on pricing from a weak vinyls market, margins in 2007 are expected to remain
strong, but could weaken in the fourth quarter due to the anticipated impact of capacity additions in late 2007.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Vinyls</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Industry-wide
PVC operating rates are expected to be lower in 2007 as a result of weak demand in the first quarter coupled with the start-up of
new capacity later in the year.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Lower
cost Far East Asian PVC production has resulted in a significant increase in imports of PVC and finished goods into the Western
Hemisphere.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CORPORATE
AND OTHER</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Corporate
and Other includes the investments in Lyondell Chemical Company (Lyondell) and Premcor, Inc., (Premcor), a leased cogeneration
facility in Taft, Louisiana and a 1,300-mile oil pipeline and gathering system located in the Permian Basin, which is used in
corporate-directed oil and gas marketing and trading operations. It also includes a cogeneration facility at Ingleside, Texas, in
which Occidental held a 50-percent interest, and acquired the remaining 50-percent interest in October 2006. The Premcor investment
was sold in 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since
December 31, 2006, Occidental has resolved certain legal disputes that it expects will result in a gain of approximately $108
million in the first quarter of 2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>On August
1, 2006, Occidental effected a two-for-one stock split in the form of a stock dividend to shareholders of record as of that date
with distribution of the shares on August 15, 2006. All share and per share amounts discussed and disclosed in this Annual Report on
Form 10-K reflect the effect of the stock split.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Lyondell</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Occidental lost significant influence over Lyondell and classified its Lyondell shares as an available-for-sale investment. In
October 2006, Occidental sold 10 million shares of Lyondell's common stock in a registered public offering for a pre-tax gain of $90
million and gross proceeds of $250 million. At December 31, 2006, Occidental owned 20.3 million Lyondell shares of common stock
(8-percent ownership), with a carrying value of $519 million, and warrants to purchase an additional five million shares of Lyondell
common stock. In February 2007, Occidental exercised these warrants and received approximately 700,000 shares of Lyondell stock.
Following this transaction, Occidental owned approximately 21 million shares of Lyondell common stock.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Premcor</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Valero
Energy Corp.&#146;s (Valero) acquisition of Premcor resulted in a $704 million pre-tax gain and the subsequent sale of all of the
Valero shares received resulted in an additional $22 million pre-tax gain in 2005.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SEGMENT
RESULTS OF OPERATIONS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following discussion of Occidental&#146;s two operating segments and corporate items should be read in conjunction with Note 15 to
the Consolidated Financial Statements.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Segment
earnings generally exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated
corporate expenses, discontinued operations and the cumulative effect of changes in accounting principles, but include gains and
losses from dispositions of segment assets and results and other earnings from the segments' equity investments.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>17</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth the sales and earnings of each operating segment and corporate items:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In millions,
      except per share amounts</font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>For the years ended December 31,</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>SALES</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil and
      Gas</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>12,676</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>9,805</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>7,093</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,815</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,641</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,675</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Other <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>170</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>151</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>111</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" style='border-bottom:black 2.25pt double'><font face="arial narrow,arial" style='font-size:8pt'>&nbsp;</font></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>17,661</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>14,597</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>10,879</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>EARNINGS(LOSS)</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil and Gas
      <sup>(b)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,239</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,968</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical
      <sup>(c)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>607</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>8,140</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,575</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,435</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Unallocated
      corporate items</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Interest
      expense, net <sup>(d)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(131</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(201</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(240</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income
      taxes <sup>(e)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(3,466</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1,927</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1,639</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Other
      <sup>(f)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(108</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>593</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(150</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income
      from continuing operations</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,435</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,040</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,406</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Discontinued
      operations, net <sup>(g)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(253</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>238</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>162</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Cumulative
      effect of changes in accounting principles, net</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Net
      Income</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,182</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,281</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,568</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Basic
      Earnings per Common Share</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4.90</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6.55</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3.24</font></p></td>
    <td width="2%"></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>These
      amounts represent revenue from a Taft, Louisiana cogeneration plant and the Permian Basin pipeline and gathering
      system.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The 2006,
      2005 and 2004 amounts include interest income of $10 million, $11 million and $18 million, respectively, from loans made to an
      equity investee.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The 2005
      amount includes a $139 million charge for the write-off of two previously idled chemical plants and one operating plant and an
      additional charge of $20 million for the write-down of another chemical plant.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The 2006,
      2005 and 2004 amounts include $31 million, $42 million and $17 million, respectively, of interest charges to redeem or
      purchase and retire various debt issues.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>As a
      result 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 amount includes a $335 million tax
      benefit due to the reversal of tax reserves no longer required, a $619 million tax benefit resulting from a closing agreement
      with the U.S. Internal Revenue Service resolving certain foreign tax credit issues and a $10 million charge related to a state
      income tax issue. The 2004 amount includes $47 million of credits related to tax settlements with the
      IRS.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(f)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The 2006
      amount includes a $90 million pre-tax gain from the sale of 10 million shares of Lyondell, a $108 million pre-tax gain related
      to litigation settlements, $54 million of corporate equity-method investment income and $47 million of environmental
      remediation expenses. The 2005 amount includes a $726 million pre-tax gain from Valero&#146;s acquisition of Premcor and the
      subsequent sale of the Valero shares received, a $140 million pre-tax gain from the sale of 11 million shares of Lyondell
      common stock, $71 million of corporate equity-method investment income and $62 million of environmental remediation expense.
      The 2004 amount includes a $121 million pre-tax gain on the issuance of Lyondell common stock, $12 million of corporate
      equity-method investment income and $59 million of environmental remediation expense.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(g)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In the
      second quarter of 2006, Ecuador&#146;s Minister of Energy terminated Occidental&#146;s contract for the operation of Block 15
      and the Government of Ecuador seized Occidental&#146;s Block 15 assets shortly thereafter. As a result of the seizure,
      Occidental has classified its Block 15 operations as discontinued operations on a retrospective application basis. The 2006
      discontinued operations amount also includes income from Vintage properties that were held for sale. The 2004 amount also
      includes the specialty resins business that was classified as a discontinued operation in 2004.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Oil
and Gas</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="56%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In millions,
      except as indicated</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Segment
      Sales</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>12,676</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>9,805</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>7,093</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Segment
      Earnings</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,239</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,968</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Core
      Earnings</b> <sup>(a)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,239</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,012</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      Production per Day</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>United
      States</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      oil and liquids (MBBL)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>California</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>86</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>76</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>78</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Permian</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>167</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>161</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>154</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Horn
      Mountain</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>12</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>13</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>19</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hugoton
      and other</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>3</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:36pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>268</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>253</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>254</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>California</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>256</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>242</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>237</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hugoton
      and other</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>138</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>133</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>127</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Permian</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>194</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>170</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>130</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Horn
      Mountain</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>8</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>13</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:36pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>595</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>553</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>507</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Latin
      America</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Argentina</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>33</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Colombia</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>38</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>36</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>37</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:36pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>71</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>36</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>37</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Argentina</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>17</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Bolivia</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>17</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:36pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>34</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Middle
      East/North Africa</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oman</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>18</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>17</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>13</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Qatar</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>43</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>42</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>45</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Yemen</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>29</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>28</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>32</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Libya</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>23</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>8</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:36pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>113</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>95</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>90</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oman</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>30</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>44</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>55</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Other
      Eastern Hemisphere</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Pakistan</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>7</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:27pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Pakistan</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>76</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>77</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>75</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Barrels
      of Oil Equivalent</b> </font><font face="arial narrow,arial" style='font-size:8pt'><b>(MBOE)
      <sup>(b)</sup></b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Subtotal
      Consolidated Subsidiaries</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>578</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>501</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>494</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Colombia-minority
      interest</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(5</b></font></p></td>
    <td width="2%"valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(4</font></p></td>
    <td width="2%"valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(4</font></p></td>
    <td width="2%"valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Russia-Occidental
      net interest <sup>(c)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>27</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>28</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>29</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Yemen-Occidental
      net interest</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="56%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:18pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      Worldwide Production (MBOE) <sup>(d)</sup></b></font></p></td>
    <td width="2%"></td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>601</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>526</font></p></td>
    <td width="2%"></td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>520</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td colspan="11" valign=bottom>
      <p style='margin-top:3pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:7pt'>(See
      footnotes on next page)</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>18</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Oil
and Gas</b></font> <font face="times new roman" style='font-size:10pt'>(continued)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="58%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>In
      millions, except as indicated</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Average
      Sales Prices</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Crude
      Oil Prices</b></font><font face="arial narrow, arial" style='font-size:7pt'> ($ per bbl)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>United
      States</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>58.13</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>50.21</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>37.72</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Latin
      America</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>52.40</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>51.18</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>36.85</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Middle
      East/North Africa <sup>(e)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>61.58</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>49.88</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>34.88</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      Eastern Hemisphere</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>56.70</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>46.84</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>33.13</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total
      consolidated subsidiaries</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>57.95</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>50.19</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>36.79</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      interests</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>34.25</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>36.16</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>23.83</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total
      worldwide <sup>(d)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>56.57</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>49.18</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>35.79</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Gas
      Prices</b></font><font face="arial narrow, arial" style='font-size:7pt'> ($ per Mcf)</font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>United
      States</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>6.51</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>7.11</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>5.35</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Latin
      America</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>2.00</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Middle
      East/North Africa <sup>(e)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>0.97</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>0.96</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>0.97</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      Eastern Hemisphere</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>2.94</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2.44</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2.25</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total
      consolidated subsidiaries</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>5.66</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>6.11</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>4.56</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      interests</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>0.14</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>0.16</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:18pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total
      worldwide <sup>(d)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>5.50</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>5.98</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>4.56</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Expensed Exploration
      </b><sup>(f)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>295</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>314</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>214</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Capital
      Expenditures</b></font></p></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="2%"></td>
    <td width="3%"></td>
    <td width="9%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Development</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>2,394</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,769</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,335</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Exploration</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>132</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>258</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>83</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      <sup>(g)</sup></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:8pt'><b>195</b></font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>110</font></p></td>
    <td width="2%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>108</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>For an
      explanation of core earnings and reconciliation to net income, see "Significant Items Affecting
      Earnings."</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Natural
      gas volumes have been converted to equivalent BOE based on energy content of 6,000 cubic feet (one thousand cubic feet is
      referred to as a &#147;Mcf&#148;) of gas to one barrel of oil.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Sold in
      January 2007.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Occidental
      has classified its Ecuador Block 15 operations as discontinued operations on a retrospective application basis and excluded
      them from this table. Excluded production from the Block 15 operations averaged 43,000 BOE per day for the first five months
      of 2006, 42,000 BOE  per day in 2005 and 46,000 BOE per day in 2004.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>These
      prices exclude the impact of taxes owed by Occidental but paid by governmental entities on its behalf.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(f)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      dry hole write-offs and lease impairments of $114 million in 2006, $220 million in 2005 and $155 million in
      2004.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(g)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      capitalized portion of injected CO</font><font face="arial narrow, arial" style='font-size:5pt'>2
      </font> <font face="arial narrow, arial" style='font-size:7pt'>of $64 million, $59 million and $54 million in 2006, 2005 and
      2004, respectively. Excludes acquisitions.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Core
earnings in 2006 were $7.2 billion, compared to $6.0 billion in 2005. The increase in core earnings is primarily due to higher crude
oil prices and oil and gas production, partially offset by higher operating expenses, including a depreciation, depletion and
amortization (DD&amp;A) increase, which was driven by higher volumes and rates.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Core
earnings in 2005 were $6.0 billion, compared with $4.0 billion in 2004. The increase in core earnings is primarily due to higher
prices and volumes for crude oil and natural gas, partially offset by higher operating expenses, higher exploration expense and
increased DD&amp;A rates.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Average
consolidated production costs for 2006 were $11.23 per BOE, compared to the average 2005 production cost of $8.81 per BOE. At least
41 percent of the increase was a result of higher energy prices pushing up utility costs, gas plant costs and ad valorem and export
taxes, and the impact on Occidental's PSCs of lower volumes due to higher energy prices. These cash operating cost increases
included $0.57 per barrel for taxes and $0.33 per barrel for higher energy costs. The remaining increase of $1.52 per barrel was the
result of higher workover, maintenance and lifting costs. Maintenance costs increased by $116 million, while workovers, ad valorem
taxes and utilities each accounted for approximately $55 million in higher costs during 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Also,
see "Production-Sharing Contracts" above.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Chemical</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Segment
      Sales</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,815</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>4,641</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>3,675</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Segment
      Earnings</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>607</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Core
      Earnings</b> <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>777</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Capital
      Expenditures</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>251</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>173</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>155</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>For an
      explanation of core earnings and reconciliation to net income, see "Significant Items Affecting
      Earnings."</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Core
earnings in 2006 were $901 million, compared to $777 million in 2005. The increase in core earnings is primarily due to higher
margins in chlorine, caustic soda and PVC.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Core
earnings in 2005 were $777 million, compared with $414 million in 2004. The increase in core earnings is primarily due to higher
margins resulting from higher prices for chlorine, caustic soda and PVC, partially offset by higher energy and feedstock
costs.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SIGNIFICANT
ITEMS AFFECTING EARNINGS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
results of operations often include the effects of significant transactions and events affecting earnings that vary widely and
 unpredictably in nature, timing and amount. Therefore, management uses a measure called "core earnings," which excludes those
items. This non-Generally Accepted Accounting Principles (GAAP) measure is not meant to disassociate those items from
management&#146;s performance, but rather is meant to provide useful information to investors interested in comparing
Occidental&#146;s earnings performance between periods. Reported earnings are considered representative of management&#146;s
performance over the long term. Core earnings is not considered to be an alternative to operating income in accordance with
GAAP.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>19</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Significant
Items Affecting Earnings</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="50%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Benefit
      (Charge)</font> <font face="arial narrow,arial" style='font-size:7pt'>(in millions)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom: double black 2.25pt'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom: double black 2.25pt'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom: double black 2.25pt'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="50%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>NET
      INCOME</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>4,182</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>5,281</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>2,568</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>OIL AND
      GAS</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Segment
      Earnings</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>7,239</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,968</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Less:</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Contract
      settlement</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(26</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hurricane
      insurance charge</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(18</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>Segment
      Core Earnings</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>7,239</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>6,012</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>CHEMICAL</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Segment
      Earnings</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>901</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>607</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Less:</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Write-off
      of plants</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(159</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hurricane
      insurance charge</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(11</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>Segment
      Core Earnings</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>901</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>777</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>TOTAL
      SEGMENT CORE EARNINGS</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>8,140</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>6,789</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>4,435</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'><b>CORPORATE</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Results
      <sup>(a)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(3,958</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1,294</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1,867</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Less:</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Debt
      purchase expense</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(31</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(42</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Trust
      preferred redemption charge</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(11</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on sale of Lyondell shares</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>90</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>140</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on sale of Premcor-Valero shares</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>726</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on Lyondell stock issuance</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>121</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>State
      tax issue charge <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(10</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Settlement
      of federal tax issue <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>619</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>47</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reversal
      of tax reserves <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>335</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Deferred
      tax write-off due to compensation program changes <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(40</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Equity
      investment impairment</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(15</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Equity
      investment hurricane insurance charge</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(2</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hurricane
      insurance charge</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(10</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(15</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Litigation
      settlements</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>108</b></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Tax
      effect of pre-tax adjustments</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(41</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(219</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(35</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Discontinued
      operations, net of tax <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(253</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>238</font></p></td>
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>162</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom>
      <p style='margin-left:12.0pt;text-indent:-6.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>Cumulative
      effect of changes in accounting principles, net of tax <sup>(b)</sup></font></p></td>
    <td width="3%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>&#151;</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="3%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br> <font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="50%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'><b>CORPORATE
      CORE RESULTS</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>(3,791</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>)</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>(3,057</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>(2,136</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="50%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'><b>TOTAL
      CORE EARNINGS</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style="font-size:8pt"><b>4,349</b></font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>3,732</font></p></td>
    <td width="3%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>2,299</font></p></td>
    <td width="2%"></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      net interest expense, income taxes, general and administrative and other expense, and certain non-core
      items.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Amounts
      shown after tax.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>TAXES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Deferred
tax liabilities, net of deferred tax assets of $1.4 billion, were $2.1 billion at December 31, 2006. The current portion of the
deferred tax assets of $190 million is included in prepaid expenses and other. The net deferred tax assets are expected to be
realized through future operating income and reversal of temporary differences.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Worldwide
Effective Tax Rate</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth the calculation of the worldwide effective tax rate for reported income from continuing operations and
core earnings:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>REPORTED
      INCOME</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil and Gas
      <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,239</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,968</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>607</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Corporate
      and Other</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(239</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>392</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(390</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Pre-tax
      income</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,967</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,045</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income tax
      expense</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Federal
      and State</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,713</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>665</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>941</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Foreign
      <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,753</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,262</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>698</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>3,466</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,927</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,639</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income from
      continuing operations</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,435</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,040</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,406</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Worldwide
      effective tax rate</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>44%</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>28%</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>41%</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>CORE
      INCOME</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil and
      Gas <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,239</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,012</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,021</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>901</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>777</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>414</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Corporate and
      Other</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(406</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(405</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(485</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Pre-tax
      income</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>7,734</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,384</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,950</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income tax
      expense</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Federal
      and State</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,632</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,390</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>953</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Foreign
      <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,753</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,262</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>698</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>3,385</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,652</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,651</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Core
      income</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,349</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,732</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,299</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Worldwide
      effective tax rate</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>44%</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>42%</font></p></td>
    <td width="4%"></td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>42%</font></p></td>
    <td width="2%"></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Revenues,
      oil and gas pre-tax income and income tax expense include taxes owed by Occidental but paid by governmental entities on its
      behalf of $1.1 billion, $887 million and $525 million for the years ended December 31, 2006, 2005 and 2004,
      respectively.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
2006 worldwide effective tax rate was 44 percent for both reported and core income. The lower income tax rate for reported income in
2005, compared to 2006, resulted from a $335 million 2005 tax benefit due to the reversal of tax reserves no longer required and a
$619 million 2005 tax benefit resulting from a closing agreement with the IRS resolving certain foreign tax credit
issues.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CONSOLIDATED
RESULTS OF OPERATIONS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Selected
Revenue Items</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="55%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Net
      sales</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>17,661</b></font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>14,597</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>10,879</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Interest,
      dividends and other income</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>381</b></font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>181</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>144</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain on
      disposition of assets, net</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>118</b></font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>870</font></p></td>
    <td width="2%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in net sales in 2005, compared to 2004, reflects higher crude oil, natural gas and chemical prices.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>20</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in interest, dividends and other income in 2006, compared to 2005, is primarily due to a $108 million gain related to
litigation settlements and interest income earned on a higher level of cash and cash equivalents.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in interest, dividends and other income in 2005, compared to 2004, reflects higher interest income earned on a higher level
of cash and cash equivalents.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Gains on
disposition of assets, net in 2006, includes a gain of $90 million from the sale of 10 million shares of Lyondell stock.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Gain on
disposition of assets, net in 2005 includes a gain of $726 million resulting from Valero&#146;s acquisition of Premcor and the
subsequent sale of all of the Valero shares received and a gain of $140 million on the sale of 11 million shares of Lyondell
stock.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Selected
Expense Items</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Cost of
      sales <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>6,284</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>5,425</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>4,418</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;text-indent:-9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Selling,
      general and administrative and other operating expenses</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,371</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>1,324</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>936</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;text-indent:-9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,042</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>1,422</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>1,251</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Exploration
      expense</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>295</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>314</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>214</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Interest and
      debt expense, net</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>291</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>293</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>260</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Excludes
      depreciation, depletion and amortization of $2,011 million in 2006, $1,383 million in 2005 and $1,213 million in
      2004.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Cost of
sales increased in 2006, compared to 2005, due to higher oil and gas production, maintenance, workover and utility costs and higher
ad valorem and export taxes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Cost of
sales increased in 2005, compared to 2004, mainly due to higher oil and gas production costs and higher energy and feedstock
costs.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Selling,
general and administrative and other operating expenses increased in 2006, compared to 2005, due to higher oil and gas production
taxes and increases in share-based and incentive compensation expense.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Selling,
general and administrative and other operating expenses increased in 2005, compared to 2004, due to the chemical plant write-offs
and writedowns in 2005, higher costs in oil and gas, including higher production-related taxes, and increases in share-based
compensation expense.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>DD&amp;A
increased in 2006, compared to 2005, due to increased production, mainly from the Vintage acquisition and higher costs of new
reserve additions resulting in a higher DD&amp;A rate.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>DD&amp;A
increased in 2005, compared to 2004, due to higher costs of new reserve additions resulting in a higher DD&amp;A rate.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in exploration expense in 2005, compared to 2004, was due mostly to higher dry hole write-offs and impairment costs and
higher seismic and geological and geophysical costs.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Interest
and debt expense in 2006, 2005 and 2004 included pre-tax debt repayment expenses of $35 million, $42 million and $17 million,
respectively. Excluding the effects of these debt repayment charges, interest expense increased in 2005, compared to 2004, due to
higher interest rates which were partially offset by lower debt levels.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Selected
Other Items</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%" valign=bottom>&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Provision
      for income taxes</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>3,466</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,927</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,639</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Income from
      equity investments</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(182</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(232</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(113</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain on
      Lyondell stock issuance</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(121</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in the provision for income taxes in 2006, compared to 2005, was due to an increase in income before taxes in 2006, a $335
million 2005 tax benefit due to the reversal of tax reserves no longer required, and a $619 million 2005 tax benefit related to the
resolution of certain IRS tax issues.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
decrease in income from equity investments in 2006, compared to 2005, is mainly due to the change in Occidental&#146;s accounting
for its Lyondell shares from equity method to available-for-sale investment in May 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in income from equity investments in 2005, compared to 2004, was due to improved results from the Lyondell equity
investment and higher income from a Russian oil and gas equity investee.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The gain
on Lyondell stock issuance in 2004 represents Occidental's share of the increase in Lyondell's net equity resulting from Lyondell's
issuance of stock to purchase Millennium.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CONSOLIDATED
ANALYSIS OF FINANCIAL POSITION</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
changes in the following components of Occidental&#146;s balance sheet are discussed below:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Selected
Balance Sheet Components</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="66%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>CURRENT
      ASSETS</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Cash
      and cash equivalents</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,339</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,188</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Short-term
      investments</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>240</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>252</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Trade
      receivables, net</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,825</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,531</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:14pt;text-indent:-5pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Receivables
      from joint ventures, partnerships and other</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>499</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>568</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Inventories</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>825</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>716</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Prepaid
      expenses and other</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>256</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>255</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Assets
      of discontinued operations</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>22</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>427</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Total
      current assets</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>6,006</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6,937</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Long-term
      receivables, net</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>231</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>377</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Investments
      in unconsolidated entities</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,344</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,209</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Property,
      plant and equipment, net</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>24,316</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>17,171</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>CURRENT
      LIABILITIES</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:14pt;text-indent:-5pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Current
      maturities of long-term debt and capital lease liabilities</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>171</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>46</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Accounts
      payable</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,263</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,046</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Accrued
      liabilities</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>1,575</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,569</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Dividends
      payable</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>188</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>147</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Domestic
      and foreign income taxes</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>396</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>326</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Liabilities
      of discontinued operations</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>131</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
     <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>138</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-left:9pt;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Total
      current liabilities</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4,724</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>4,272</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Long-term
      debt, net</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,619</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,873</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Deferred
      credits and other liabilities-income taxes</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,326</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>970</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Deferred
      credits and other liabilities-other</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,966</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,621</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Long-term
      liabilities of discontinued operations</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>195</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Stockholders&#146;
      equity</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>19,184</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>15,032</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>21</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Assets</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>See
&#147;Cash Flow Analysis&#148; for discussion about the change in cash and cash equivalents. The increase in trade receivables is
due to higher worldwide oil prices and higher oil and gas production volumes during the fourth quarter of 2006 versus 2005. The
increase in inventories is due to an increase in materials and supplies, mainly in Oman and Colombia, and increases in chemical
inventory volumes during the fourth quarter of 2006 versus 2005. The decrease in assets of discontinued operations is due to the
write-off of the investment in Block 15 in Ecuador during the second quarter of 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
decrease in long-term receivables reflects lower mark-to-market adjustments on long-term derivative financial instruments. The
increase in investments in unconsolidated entities is due to mark-to-market adjustments on the Lyondell investment, which became an
available-for-sale investment in May 2006 and additional capital investments made on the Dolphin Project during 2006, partially
offset by the sale of 10 million shares of Lyondell common stock.  The increase in PP&amp;E is due to the acquisitions of Vintage
and properties from Plains completed in the first and third quarters of 2006, respectively, and oil and gas capital expenditures
during 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Liabilities
and Stockholders' Equity</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Debt
to Capitalization</i> <sup>(a)</sup></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><img src="debttocap.gif"></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%" align=center>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>This ratio
      is computed by dividing year-end Total Debt, as shown in the "MD&amp;A-Strategy-Key Performance Indicators-Debt Structure," by
      the sum of year-end Total Debt plus year-end Stockholders&#146; Equity.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in current maturities of long-term debt and capital leases is due to the 4.0-percent medium-term notes, which were
reclassified from long-term to current since they mature in 2007. The increase in accounts payable is due to the Vintage
acquisition, higher prices and volumes for purchased oil in the marketing and trading operations, and higher chemical volume and
feedstock price increases during 2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
decrease in long-term debt, net is due to various debt redemptions and repurchases throughout 2006, offset by the debt assumed in
the Vintage acquisition. The increase in deferred credits and other liabilities &#150; income taxes is due to the additional
deferred taxes recorded as part of the Vintage acquisition purchase accounting. The increase in deferred credits and other
liabilities &#150; other is due to additional pension liabilities recorded in connection with Occidental&#146;s adoption of
Statement of Financial Accounting Standards (SFAS) 158. The increase in long-term liabilities of discontinued operations was due to
accruing the OCP ship-or-pay obligations in Ecuador.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
increase in stockholders' equity reflects the stock issued as consideration for the Vintage acquisition and net income for 2006,
partially offset by treasury stock repurchases and dividend payments.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>LIQUIDITY
AND CAPITAL RESOURCES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, Occidental had approximately $1.6 billion in cash and short-term investments on hand. Although income and cash
flows are largely dependent on oil and gas prices and production, Occidental believes that cash and short-term investments on hand
and cash generated from operations will be sufficient to fund its operating needs, capital expenditure requirements, dividend
payments, potential acquisitions, its announced common stock repurchase program and debt repurchases. If needed, Occidental could
access its existing credit facilities.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Available
but unused lines of committed bank credit totaled approximately $1.5 billion at December 31, 2006. In September 2006, Occidental
amended and restated its $1.5 billion bank credit (Credit Facility) to, among other things, lower the interest rate and extend the
term to September 2011. The Credit Facility provides for the termination of the loan commitments and requires immediate repayment of
any outstanding amounts if certain events of default occur or if Occidental files for bankruptcy. Occidental had not drawn down any
amounts on the Credit Facility at December 31, 2006. None of Occidental's committed bank credits contain material adverse change
(MAC) clauses or debt rating triggers that could restrict Occidental's ability to borrow under these lines. Occidental's credit
facilities and debt agreements do not contain rating triggers that could terminate bank commitments or accelerate debt in the event
of a ratings downgrade.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, under the most restrictive covenants of certain financing agreements, Occidental's capacity for additional
unsecured borrowing was approximately $44.8 billion, and the capacity for the payment of cash dividends and other distributions on,
and for acquisitions of, Occidental's capital stock was approximately $17.2 billion, assuming that such dividends, distributions and
acquisitions were made without incurring additional borrowing.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2006, Occidental completed the Vintage acquisition and paid $1.3 billion in cash to former Vintage shareholders and issued
approximately 56 million shares of Occidental common stock, which were valued at $2.1 billion. In addition, Occidental assumed
Vintage&#146;s debt, which had an estimated fair market value of $585 million at closing.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental redeemed or repurchased $274 million of this newly acquired debt, including all of its 7.875-percent Vintage senior
subordinated notes due 2011 and $74 million of its 8.25-percent Vintage senior notes due 2012. Additionally, Occidental redeemed all
of its 7.375-percent senior notes due 2008 and purchased and retired a total of $120 million of its 4-percent medium-term notes due
2007, its 4.25-percent medium-term notes due 2010, its 6.75-percent senior notes due 2012, its 9.25-percent senior debentures due
2019, its 8.75-percent senior notes due 2023 and its 8.45-percent senior notes due 2029.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>22</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental redeemed all of its 5.875-percent senior notes due 2007, all of its 4.101-percent medium-term senior notes due 2007, all
of its 7.65-percent senior notes due 2006 and three of its unsecured subsidiary notes due 2028 through 2030. In addition, Occidental
purchased and retired a total of $213 million of its 6.75-percent senior notes due 2012, its 10.125-percent senior notes due 2009,
its 4-percent medium-term senior notes due 2007 and its 4.25-percent medium-term senior notes due 2010.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In July
2005, Dolphin Energy entered into a bridge loan in an amount of $2.45 billion. The proceeds of the new bridge loan were used to pay
off amounts outstanding on a previous bridge loan and are being used to fund the construction of the Dolphin Project. The new bridge
loan has a term of four years, is a revolving credit facility for the first two years and may be converted to a term loan
thereafter. In September 2005, Dolphin Energy entered into an agreement with banks to provide a $1.0 billion Islamic-law-compliant
facility to fund the construction of a certain portion of the Dolphin Project. This four-year financing facility is structured as a
transaction in which Dolphin Energy constructs part of the midstream portion of the Dolphin Project on behalf of a group of Islamic
investors and enters into a lease to use such assets upon construction completion. Occidental guarantees 24.5 percent of both of
these obligations of Dolphin Energy. At December 31, 2006, Occidental&#146;s portion of the bridge loan and Islamic-law-compliant
facility draw downs were $469 million and $184 million, respectively. Occidental had recorded $473 million on the balance sheet at
December 31, 2006, for the combined bridge loan and Islamic-law-compliant facility. The remaining amounts of the bridge loan and
Islamic-law-compliant facility draw downs are included in guarantees discussed in &#147;Off-Balance-Sheet Arrangements &#150;
Guarantees&#148; below.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In the
first quarter of 2005, Occidental filed a shelf registration statement for up to $1.5 billion of various securities. As of December
31, 2006, no securities had been issued under this shelf.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2007, Occidental completed a cash tender offer for its 10.125-percent senior debentures due 2009, 9.25-percent senior
debentures due 2019, 8.75-percent senior notes due 2023, 7.2-percent senior debentures due 2028 and 8.45-percent senior notes due
2029, resulting in the repurchase of a portion of these debt instruments totaling $659 million. The repurchases were funded with
Occidental&#146;s cash on hand and resulted in debt repurchase expenses of $165 million.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Cash
Flow Analysis</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="311">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Net
      cash provided by operating activities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>6,353</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5,337</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,878</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
significant increase in operating cash flow in 2006, compared to 2005, resulted from several factors. The most important drivers
were higher crude oil prices, higher oil and gas production and, to a much lesser extent, higher chemical margins, partially offset
by the effects of lower gas prices and reduced cash flow from discontinued operations. In 2006, Occidental&#146;s realized crude oil
prices increased by 15 percent and its oil and gas production increased by over 14 percent compared to 2005. The increase in
production was mainly due to the 11 months of production from the Vintage acquisition.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Increases
in the costs of producing oil and gas, such as purchased goods and services, and higher utility costs, gas plant costs and ad
valorem and export taxes, partially offset the effect of oil price increases. Other cost elements, such as labor costs and
overheads, are not significant drivers of cash flow because they are mainly fixed within a narrow range over the short to
intermediate term. The cost increases had a smaller effect on cash flow than the higher crude oil prices and the higher crude oil
and natural gas production.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Most
major chemical prices increased in 2006, compared to 2005, at a higher rate than ethylene costs, thereby improving chemical margins.
The overall impact of the chemical price changes on cash flow was much less than for oil and gas price changes because the chemical
segment earnings and cash flow are significantly smaller than those for the oil and gas segment. Sales volumes for certain chemical
products were slightly lower in 2006, however, this did not have a significant effect on Occidental&#146;s earnings and cash
flow.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
significant increase in operating cash flow in 2005, compared to 2004, resulted from several factors. The most important drivers
were the significantly higher oil and natural gas prices and, to a much lesser extent, chemical prices. Although the changes in
realized prices varied among the regions in which Occidental operates, in 2005, Occidental's realized oil prices were higher overall
by 37 percent. Occidental&#146;s realized natural gas price increased over 33 percent in the United States, where approximately 80
percent of Occidental&#146;s natural gas was produced in 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Increases
in the costs of producing oil and gas, such as purchased goods and services, and higher utility, gas plant and production taxes,
partially offset oil and gas sales price increases, but such cost increases had a much lower effect on cash flow than the realized
price increases. Other cost elements, such as labor costs and overheads, are not significant drivers of cash flow because they are
mainly fixed within a narrow range over the short to intermediate term.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Most
major chemical prices increased in 2005 at a higher rate than the energy-driven increase in feedstock and power costs, thereby
improving profits and cash flow. The overall impact of the chemical price changes on cash flow was much less than for oil and gas
price changes, not only because the chemical segment earnings and cash flow are significantly smaller than those for the oil and gas
segment, but also because of increases in energy price-driven feedstock and electric power costs, which are major elements of
manufacturing cost for the chemical segment's products. Sales volumes for chemical products generally were higher in 2005, but this
did not have a significant effect on Occidental's earnings and cash flow.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Other
non-cash charges to income in 2006 included stock incentive plan amortization, deferred compensation and environmental remediation
accruals. Other non-cash charges to income in 2005 included chemical asset write-downs, deferred compensation, stock incentive plan
amortization and environmental remediation accruals. Other non-cash charges in 2004 included deferred compensation, stock incentive
plan amortization, environmental remediation accruals and a chemical asset write-down.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>23</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Net cash
      used by investing activities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(4,383</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p> </td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(3,161</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p> </td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p> </td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(2,428</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2006
amount includes the cash payments associated with the acquisition of Vintage and the property acquisition from Plains, partially
offset by cash proceeds from the Vintage assets subsequently sold and from the sale of Lyondell shares.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2005
amount includes the cash payments for several Permian Basin acquisitions, the acquisition of the Vulcan chlor-alkali manufacturing
facilities and the payments to re-enter Libya and to assume operations of the Mukhaizna field in Oman. These were partially offset
by the cash proceeds from the sale of the Premcor-Valero shares and the Lyondell shares.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2004
amount includes the purchase of a pipeline and gathering system in the Permian Basin and a $204 million advance to the Elk Hills
Power LLC (EHP) equity investment, which EHP used to repay a portion of its debt.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Also, see
the "Capital Expenditures" section below.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Net cash
      used by financing activities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(2,819</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p> </td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1,187</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p> </td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p> </td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(821</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2006
amount consists of $1.5 billion of cash paid for Occidental&#146;s stock repurchase plan and net debt payments of approximately $900
million.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2005
amount includes net debt payments of approximately $900 million.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The 2004
amount includes $466 million paid to redeem the trust preferred securities in January 2004 and $159 million paid to redeem
Occidental's 6.5-percent senior notes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
paid common stock dividends of $646 million in 2006, $483 million in 2005 and $424 million in 2004.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Capital
Expenditures</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil and
      Gas</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2,721</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,137</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,526</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>251</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>173</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>155</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Corporate
      and Other</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>33</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>14</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>39</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total <sup>(a)</sup></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>3,005</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,324</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1,720</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Excludes
      acquisitions. Amounts are included in net cash used by investing activities discussed above.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
capital spending estimate for 2007 is approximately $3.3 to $3.4 billion. Most of the capital spending will be allocated to oil and
gas exploration, production and development activities for the Oman Mukhaizna project, the Vintage properties in Argentina and
California, Libya, Qatar, the Permian Basin and Elk Hills.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Commitments
at December 31, 2006, for major capital expenditures during 2007 and thereafter were approximately $787 million. Occidental will
fund these commitments and capital expenditures with cash from operations.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>OFF-BALANCE-SHEET
ARRANGEMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In the
course of its business activities, Occidental pursues a number of projects and transactions to meet its core business objectives.
The accounting and financial statement treatment of these transactions is a result of the varying methods of funding employed.
Occidental also makes commitments on behalf of unconsolidated entities. These transactions, or groups of transactions, are recorded
in compliance with GAAP and, unless otherwise noted, are not reflected on Occidental&#146;s balance sheets. The following is a
description of the business purpose and nature of these transactions.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Dolphin
Project</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>See "Oil
and Gas Segment &#151; Business Review &#151; Middle East/North Africa &#151; Dolphin Project" and "Liquidity and Capital Resources"
for further information.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Ecuador</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
Ecuador, Occidental has a 14-percent interest in the OCP oil export pipeline. As of December 31, 2006, Occidental&#146;s net
investment in and advances to the project totaled $72 million. Occidental reports this investment in its consolidated financial
statements using the equity method of accounting. The project was funded in part by senior project debt. The senior project debt is
to be repaid with the proceeds of ship-or-pay tariffs of certain upstream producers in Ecuador. In May 2006, Ecuador terminated
Occidental&#146;s contract for the operation of Block 15, which comprised all of its oil-producing operations in the country, and
seized Occidental&#146;s Block 15 assets. Occidental&#146;s guarantee of its share of the ship-or-pay obligations provides the
lenders the right to require Occidental to make an advance tariff payment as a result of the expropriation. At December 31, 2006,
the total pre-tax advance tariff payment of approximately $95 million was accrued in Occidental&#146;s consolidated financial
statements, and was included in the net after-tax charge of $296 million discussed in the &#147;Business Review &#150; Latin America
&#150; Ecuador&#148; section. This advance tariff would be used by the pipeline company to service or prepay project debt. At
December 31, 2006, Occidental also had obligations relating to performance bonds totaling $14 million.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Leases</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has entered into various operating-lease agreements, mainly for railcars, power plants, manufacturing facilities and office space.
Occidental leases assets when it offers greater operating flexibility.  Lease payments are expensed mainly as cost of sales. See the
Contractual Obligations table below.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Guarantees</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 affiliates will
meet their various obligations (guarantees).</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>24</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, the notional amount of the guarantees that are subject to the reporting requirements of Financial Accounting
Standards Board (FASB) Interpretation No. (FIN) 45 was approximately $270 million, which consists of Occidental&#146;s guarantee of
equity investees&#146; debt, primarily from the Dolphin Project equity investment, and other commitments.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Contractual
Obligations</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The table
below summarizes and cross-references certain contractual obligations that are reflected in the Consolidated Balance Sheets as of
December 31, 2006 and/or disclosed in the accompanying Notes.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="30%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="11" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Payments
      Due by Year</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Contractual
        <br>Obligations </font><font face="arial narrow, arial" style='font-size:7pt'>(in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2008
        <br>to
        <br>2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2010
        <br>to
        <br>2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2012
        <br>and
        <br>thereafter</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:3pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Consolidated
        <br>Balance Sheet</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:9pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Long-term
      debt
        <br>(Note 5) <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2,774</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>171</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>705</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>307</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,591</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:9pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Capital
      leases
        <br>(Note 6)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>38</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>33</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:9pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Other
      liabilities <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>5,353</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>3,754</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>620</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>347</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>632</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:3pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Other
      Obligations</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:9pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Operating
      leases
        <br>(Note 6) <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,418</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>175</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>271</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>187</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>785</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:9pt;text-indent:-3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Purchase
        <br>obligations <sup>(d, e)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>6,637</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,660</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,969</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,613</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>1,395</font></p></td></tr>
  <tr>
    <td width="30%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>16,220</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>5,761</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>3,567</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>2,456</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>4,436</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Excludes
      unamortized debt premiums and interest expense on the debt. As of December 31, 2006, interest on long-term debt totaling $1.8
      billion is payable in the following years: 2007 - $174 million, 2008 to 2009 - $317 million, 2010 to 2011 - $258 million and
      2012 and thereafter - $1,053 million. In January 2007, Occidental completed a cash tender offer and repurchased $659 million
      of long-term debt included in the table, which will reduce future interest payments by approximately $880 million over the
      original maturities of the repurchased debt.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      accounts payable, certain accrued liabilities and obligations under postretirement benefit and deferred compensation
      plans.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Amounts
      have not been reduced for sublease rental income.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      long-term purchase contracts and purchase orders and contracts for goods and services used in manufacturing and producing
      operations in the normal course of business. Some of these arrangements involve take-or-pay commitments but they do not
      represent debt obligations. Due to their long-term nature, purchase contracts with terms greater than 5 years are discounted
      using a 7-percent discount rate.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Amounts
      exclude purchase obligations related to oil and gas marketing and trading activities where an offsetting sales position
      exists.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>LAWSUITS,
CLAIMS, COMMITMENTS, CONTINGENCIES AND RELATED MATTERS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>OPC or
certain of its subsidiaries have been named in many lawsuits, claims and other legal proceedings. These actions seek, among other
things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other
losses, or injunctive or declaratory relief. OPC or certain of its subsidiaries also have been named in proceedings under the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar federal, state, local and foreign
environmental 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 response costs with other financially sound companies. With respect to all
such lawsuits, claims and proceedings, including environmental proceedings, Occidental accrues reserves when it is probable a
liability has been incurred and the amount of loss can be reasonably estimated.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since
2004, Occidental Chemical Corporation (OCC) has been served with ten lawsuits filed in Nicaragua by approximately 2,600 individual
plaintiffs. These individuals allege that they have sustained several billion dollars of personal injury damages as a result of
their alleged exposure to a pesticide. OCC is aware of, but has not been served in, 24 additional cases in Nicaragua, which
Occidental understands make similar allegations. In the opinion of management, the claims against OCC are without merit because,
among other things, OCC believes that none of the pesticide it manufactured was ever sold or used in Nicaragua. Under the applicable
Nicaraguan statute, defendants are required to pay pre-trial deposits so large as to effectively prohibit defendants from
participating fully in their defense. OCC filed a response to the complaints contesting jurisdiction without posting such pre-trial
deposit. In 2004, the judge in one of the cases (Osorio Case), ruled the court had jurisdiction over the defendants, including OCC,
and that the plaintiffs had waived the requirement of the pre-trial deposit. In order to preserve its jurisdictional defense, OCC
elected not to make a substantive appearance in the Osorio Case. In 2005, the judge in the Osorio Case entered judgment against
several defendants, including OCC, for damages totaling approximately $97 million. In December 2006, the court in a second case in
Nicaragua (Rios Case) entered a judgment against several defendants, including OCC, for damages totaling approximately $800 million.
While preserving its jurisdictional defenses, OCC has appealed the judgments in the Osorio and Rios Cases. OCC has no assets in
Nicaragua and, in the opinion of management, any judgment rendered under the statute, including in the Osorio and Rios Cases, would
be unenforceable in the United States.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>During
the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local
and foreign tax jurisdictions. Taxable years prior to 2001 are generally closed for U.S. federal corporate income tax purposes.
Corporate tax returns for taxable years 2001 through 2003 are in various stages of audit by the U.S. Internal Revenue Service.
Disputes may arise during the course of such audits as to facts and matters of law.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling services, electrical
power, steam and certain chemical raw materials. At December 31, 2006, the net present value of the fixed and determinable portion
of the obligations under these agreements, which were used to collateralize financings of the respective suppliers, aggregated $16
million, which was payable as follows (in millions): 2007 &#150; $12 and 2008 &#150; $4. Fixed payments under these agreements were
$18 million in 2006, $17 million in 2005 and $19 million in 2004. See "Off-Balance-Sheet Arrangements &#151; Contractual
Obligations" for further information.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has certain other commitments under contracts, guarantees and joint ventures, including purchase commitments for goods and services
at market-related prices and certain other contingent liabilities. See "Off-Balance-Sheet Arrangements" for further information.
Some of these commitments,</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>25</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>although not fixed or
determinable, involve capital expenditures and are part of the $3.3 to $3.4 billion in capital expenditures estimated for
2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has indemnified various parties against specified liabilities that those parties might incur in the future in connection with
purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the
other party incurring liabilities that reach specified thresholds. As of December 31, 2006, Occidental is not aware of circumstances
that it believes would reasonably be expected to lead to future indemnity claims against it in connection with these transactions
that would result in payments materially in excess of reserves.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>It is
impossible at this time to determine the ultimate liabilities that OPC and its subsidiaries may incur resulting from any lawsuits,
claims and proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities. If these matters
were to be ultimately resolved unfavorably at amounts substantially exceeding Occidental&#146;s reserves, an outcome not currently
anticipated, it is possible that such outcome could have a material adverse effect upon Occidental&#146;s consolidated financial
position or results of operations. However, after taking into account reserves, management does not expect the ultimate resolution
of any of these matters to have a material adverse effect upon Occidental&#146;s consolidated financial position or results of
operations.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ENVIRONMENTAL
LIABILITIES AND EXPENDITURES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
operations are subject to stringent federal, state, local and foreign laws and regulations relating to improving or maintaining
environmental quality. Costs associated with environmental compliance have increased over time and are expected to rise in the
future. Environmental expenditures related to current operations are factored into the overall business planning process and are
considered an integral part of production in manufacturing quality products responsive to market demand.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Environmental
Remediation</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The laws
that require or address environmental remediation may apply retroactively to past waste disposal practices and releases of
substances to the environment. In many cases, the laws apply regardless of fault, legality of the original activities or current
ownership or control of sites. OPC or certain of its subsidiaries are currently participating in environmental assessments and
cleanups under these laws at federal Superfund sites, comparable state sites and other domestic and foreign remediation sites,
including currently owned facilities and previously owned sites. Also, OPC or certain of its subsidiaries have been involved in a
substantial number of governmental and private proceedings involving historical practices at various sites including, in some
instances, having been named in proceedings under CERCLA and similar federal, state and local environmental laws. These proceedings
seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages and civil
penalties.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
manages its environmental remediation efforts through a wholly owned subsidiary, Glenn Springs Holdings, Inc., which reports its
results directly to Occidental&#146;s corporate management.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table presents Occidental&#146;s environmental remediation reserves at December 31, 2006, 2005 and 2004, grouped by three
categories of environmental remediation sites:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="25%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>$ amounts in
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="25%"></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>#
      of Sites</b></font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Reserve
      Balance</b></font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'># of
      Sites</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reserve
      Balance</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'># of
      Sites</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reserve
      Balance</font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>CERCLA
      &amp; equivalent sites</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>105</b></font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>226</b></font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>128</font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>236</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>125</font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>239</font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Active
      facilities</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>21</b></font></p></td>
    <td width="3%"></td>
    <td width="2%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>116</b></font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>18</font></p></td>
    <td width="3%"></td>
    <td width="2%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>114</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>16</font></p></td>
    <td width="3%"></td>
    <td width="2%"></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>75</font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Closed
      or sold facilities</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>40</b></font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>70</b></font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>39</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>68</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>39</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>61</font></p></td></tr>
  <tr>
    <td width="25%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>166</b></font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>412</b></font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>185</font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>418</font></p></td>
    <td width="2%"></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>180</font></p></td>
    <td width="3%"></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>375</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table shows environmental reserve activity for the past three years:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Balance -
      Beginning of Year</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>418</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>375</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>372</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Remediation
      expense and interest accretion</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>48</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>63</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>60</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Changes
      from acquisitions</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>17</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>45</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>6</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Payments</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(71</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>(71</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="14%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>(63</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Other</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>6</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Balance -
      End of Year</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>412</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>418</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:8pt'>375</font></p></td>
    <td width="2%"></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
expects to expend funds equivalent to about half of the current environmental reserve over the next three years and the balance over
the next ten or more years. Occidental believes it is reasonably possible that it will continue to incur additional liabilities
beyond those recorded for environmental remediation at these sites. The range of reasonably possible loss for existing environmental
remediation matters could be up to $430 million beyond the amount accrued.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
management&#146;s opinion, refer to the "Lawsuits, Claims, Commitments, Contingencies and Related Matters" section above.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>CERCLA
and Equivalent Sites</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As of
December&nbsp;31,&nbsp;2006, OPC or certain of its subsidiaries have been named in 105 CERCLA or state equivalent proceedings, as
shown below.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="58%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Description
      </font><font face="arial narrow,arial" style='font-size:7pt'>($ amounts in millions)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>#
      of Sites</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Reserve
      Balance</b></font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Minimal/No
      exposure <sup>(a)</sup></font></p></td>
    <td width="3%"></td>
    <td width="18%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>85</b></font></p></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reserves
      between $1-10 MM</font></p></td>
    <td width="3%"></td>
    <td width="18%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>14</b></font></p></td>
    <td width="3%"></td>
    <td width="9%"></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>55</b></font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reserves
      over $10 MM</font></p></td>
    <td width="3%"></td>
    <td width="18%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>6</b></font></p></td>
    <td width="3%"></td>
    <td width="9%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>165</b></font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="3%"></td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>105</b></font></p></td>
    <td width="3%"></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>226</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      32 sites for which Maxus Energy Corporation has retained the liability and indemnified Occidental, 5 sites where Occidental
      has denied liability without challenge, 15 sites where Occidental&#146;s reserves are less than $50,000 each, and 33 sites
      where reserves are between $50,000 and $1 million each.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The six
sites with individual reserves over $10 million in 2006 include a former copper mining and smelting operation in Tennessee, two closed landfills in western New York and groundwater treatment facilities at three closed chemical plants (Montague, Michigan, western New York and Tacoma, Washington).</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>26</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Active
Facilities</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
subsidiaries of OPC are currently addressing releases of substances from past operations at 21 active facilities. Five facilities
&#151; a chemical plant in Louisiana, a phosphorus recovery operation in Tennessee, a chemical plant in Texas, a chemical plant in
Kansas and certain oil and gas properties in the southwestern United States &#151; account for 69 percent of the reserves associated
with these facilities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Closed
or Sold Facilities</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>There
are 40 sites formerly owned or operated by certain subsidiaries of OPC that have ongoing environmental remediation requirements in
which OPC or its subsidiaries are involved. Five sites account for 70 percent of the reserves associated with this group. The five
sites are:  an active refinery in Louisiana where Occidental indemnifies the current owner and operator for certain remedial
actions, a water treatment facility at a former coal mine in Pennsylvania, a closed OCC chemical plant in Pennsylvania, a closed
landfill in western New York and a water treatment facility at a former OCC chemical plant in North Carolina.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Environmental
Costs</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
costs, some of which may include estimates, relating to compliance with environmental laws and regulations, are shown below for each
segment:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Operating
      Expenses</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil
      and Gas</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>95</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>65</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>51</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>73</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>67</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>59</font></p></td></tr>
  <tr>
    <td width="49%"></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>168</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>132</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>110</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Capital
      Expenditures</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil
      and Gas</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>55</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>43</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>44</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>25</b></font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>21</font></p></td>
    <td width="4%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12</font></p></td></tr>
  <tr>
    <td width="49%"></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>80</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>64</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>56</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Remediation
      Expenses</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="10%"></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Corporate</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>47</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>62</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>59</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Operating
expenses are incurred on a continual basis. Capital expenditures relate to longer-lived improvements in currently operating
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 are expected to increase.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
presently estimates that capital expenditures for environmental compliance will be approximately $94 million for 2007 and $100
million for 2008.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>FOREIGN
INVESTMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Portions
of Occidental&#146;s assets are located outside of North America. Occidental conducts its financial affairs so as to mitigate its
exposure against risks associated with the locations of these assets. At December 31, 2006, the carrying value of Occidental&#146;s
assets in countries outside North America aggregated approximately $9.2 billion, or approximately 28 percent of Occidental&#146;s
total assets at that date. Of such assets, approximately $5.0 billion are located in the Middle East/North Africa, approximately
$3.9 billion are located in Latin America, and substantially all of the remainder are located in the Other Eastern Hemisphere
region. For the year ended December 31, 2006, net sales outside North America totaled $5.6 billion, or approximately 31 percent of
total net sales.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CRITICAL
ACCOUNTING POLICIES AND ESTIMATES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
process of preparing financial statements in accordance with GAAP requires the management of Occidental to make estimates and
judgments regarding certain items and transactions. It is possible that materially different amounts could be recorded if these
estimates and judgments change or if the actual results differ from these estimates and judgments. Occidental considers the
following to be its most critical accounting policies and estimates that involve the judgment of Occidental&#146;s management. There
has been no material change to these policies over the past three years. The selection and development of these critical accounting
policies and estimates have been discussed with the Audit Committee of the Board of Directors.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Oil
and Gas Properties</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
uses the successful efforts method to account for its oil and gas properties. Under this method, costs of acquiring properties,
costs of drilling successful exploration wells and development costs are capitalized. The costs of exploratory wells are initially
capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs
of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have
been found, the costs of each of the related exploratory wells are charged to expense. In some cases, a determination of proved
reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. Occidental's
practice is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a
twelve-month period after drilling is complete. Occidental has no proved oil and gas reserves for which the determination of
commercial viability is subject to the completion of major additional capital expenditures.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Annual
lease rentals and geological, geophysical and seismic costs are expensed as incurred.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Proved
oil and gas reserves are the estimated quantities of crude oil, natural gas, and NGLs that geological and engineering data
demonstrate, with reasonable certainty, can be recovered in future years from known reservoirs under existing economic and operating
conditions considering future production and development costs.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Several
factors could change Occidental&#146;s recorded oil and gas reserves. Occidental receives a share of production from PSCs to recover
its costs and an additional share for profit. Occidental&#146;s share of production and reserves from these contracts decreases when
oil prices rise and increases when oil prices decline. Overall, Occidental&#146;s net economic benefit from these contracts is
greater at higher oil prices. In other contractual arrangements, sustained lower product prices may lead to a situation where
production of proved reserves becomes uneconomical. Estimation of</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>27</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>future production and
development costs is also subject to change partially due to factors beyond Occidental's control, such as energy costs and inflation
or deflation of oil field service costs. These factors, in turn, could lead to changes in the quantity of recorded proved reserves.
An additional factor that could result in a change of proved reserves is the reservoir decline rates being different from those
estimated when the reserves were initially recorded. Occidental&#146;s revisions to proved reserves were positive for 2006 and
amounted to less than 1 percent of the total reserves for the year. In 2005, revisions to proved reserves were negative and amounted
to less than 1 percent of the total reserves for the year. In 2004, revisions to proved reserves were positive and amounted to
approximately 2 percent of the total reserves. Additionally, Occidental is required to perform impairment tests pursuant to SFAS No.
144, generally when prices decline and/or reserve estimates change significantly. There have been no SFAS No. 144 impairments of oil
and gas assets over the past three years.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>If
Occidental&#146;s consolidated oil and gas reserves were to change based on the factors mentioned above, the most significant impact
would be on the DD&amp;A rate. For example, a 5-percent increase in the amount of consolidated oil and gas reserves would change the
rate from $8.35 per barrel to $7.94 per barrel, which would increase pre-tax income by $88 million annually. A 5-percent decrease in
the oil and gas reserves would change the rate from $8.35 per barrel to $8.77 per barrel and would result in a decrease in pre-tax
income of $88 million annually.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>DD&amp;A
of oil and gas producing properties is determined by the unit-of-production method and could change with revisions to estimated
proved reserves. The change in the DD&amp;A rate over the past three years due to revisions of previous proved reserve estimates has
been immaterial.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A portion
of the carrying value of Occidental&#146;s oil and gas properties is attributable to unproved properties. At December 31, 2006, the
capitalized costs attributable to unproved properties, net of accumulated valuation allowance, were $1.7 billion. The acquisition of
Vintage resulted in an addition of $1.3 billion of unproved properties in 2006. No goodwill was recorded on this transaction. During
2006, approximately $300 million of the unproved property amount was moved to proved properties. The unproved amounts are not
subject to DD&amp;A or impairment until a determination is made as to the existence of proven reserves. As exploration and
development work progresses, if reserves on these properties are proven, capitalized costs attributable to the properties will be
subject to depreciation and depletion. If the exploration and development work were to be unsuccessful, the capitalized costs of the
properties related to this unsuccessful work would be expensed in the year in which the determination was made. The timing of any
writedowns of these unproven properties, if warranted, depends upon the nature, timing and extent of future exploration and
development activities and their results. Occidental believes its exploration and development efforts will allow it to realize the
unproved property balance.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Chemical
Assets</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The most
critical accounting policy affecting Occidental&#146;s chemical assets is the determination of the estimated useful lives of its
PP&amp;E. Occidental's chemical plants are depreciated using either the unit-of-production or straight-line method, based upon the
estimated useful life of the facilities. The estimated useful lives of Occidental&#146;s chemical assets, which range from 3 years
to 50 years, are used to compute depreciation expense and are also used for impairment tests. The estimated useful lives used for
the chemical facilities are based on the assumption that Occidental will provide an appropriate level of annual expenditures to
ensure productive capacity is sustained. Without these continued expenditures, the useful lives of these plants could significantly
decrease. Other factors that could change the estimated useful lives of Occidental&#146;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. Over the prior three years, the change in the depreciation rate due to changes
in estimated useful lives has been immaterial.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
performs impairment tests on its assets whenever events or changes in circumstances lead to a reduction in the estimated useful
lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management&#146;s
plans change with respect to those assets. Occidental compares the undiscounted future cash flows of an asset to its carrying value.
The key factors that could significantly affect future cash flows are future product prices, which are particularly affected by both
domestic and foreign competition, feedstock costs, energy costs, regulations and remaining estimated useful life. Impaired assets
are written down to their estimated fair values.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Subsequent
to the purchase of the Vulcan chemical assets, Occidental reviewed all of its chemical assets and decided to close its least
competitive plants and upgrade the remaining operations. As a result of this review, Occidental recorded a $139 million pre-tax
charge for the write-off of two previously idled chemical plants and one operating plant and a pre-tax additional charge of $20
million for the write-down of another chemical plant in 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
net PP&amp;E for chemicals is approximately $2.6 billion and its depreciation expense for 2007 is expected to be approximately $256
million. If the estimated useful lives of Occidental&#146;s chemical plants were to decrease based on the factors mentioned above,
the most significant impact would be on depreciation expense. For example, a reduction in the remaining useful lives of one year
would increase depreciation and reduce pre-tax earnings by approximately $17 million per year.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>28</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Environmental
Liabilities and Expenditures</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Environmental
expenditures that relate to current operations are expensed or capitalized as appropriate. Reserves for estimated costs that relate
to existing conditions caused by past operations and that do not contribute to current or future revenue generation are recorded
when environmental remedial efforts are probable and the costs can be reasonably estimated. In determining the reserves and the
reasonably possible range of loss, Occidental refers to currently available information, including relevant past experience,
available technology, regulations in effect, the timing of remediation and cost-sharing arrangements. The environmental reserves are
based on management&#146;s estimate of the most likely cost to be incurred and are reviewed periodically and adjusted as additional
or new information becomes available. Environmental reserves are recorded on a discounted basis only when a reserve is initially
established and the aggregate amount of the estimated costs for a specific site and the timing of cash payments are reliably
determinable. The reserve methodology for a specific site is not modified once it has been established. Recoveries and
reimbursements are recorded in income when receipt is probable. As of December 31, 2006 and 2005, Occidental has not accrued any
reimbursements or indemnification recoveries for environmental remediation matters as assets.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Many
factors could result in changes to Occidental&#146;s environmental reserves and reasonably possible range of loss. The most
significant are:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The original cost
      estimate may have been inaccurate.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Modified remedial
      measures might be necessary to achieve the required remediation results. Occidental generally assumes that the remedial
      objective can be achieved using the most cost-effective technology reasonably expected to achieve that objective. Such
      technologies may include air sparging or phyto-remediation of shallow groundwater, or limited surface soil removal or in-situ
      treatment producing acceptable risk assessment results. Should such remedies fail to achieve remedial objectives, more
      intensive or costly measures may be required.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The remedial measure
      might take more or less time than originally anticipated to achieve the required contaminant reduction. Site-specific time
      estimates can be affected by factors such as groundwater capture rates, anomalies in subsurface geology, interactions between
      or among water-bearing zones and non-water-bearing zones, or the ability to identify and control contaminant
      sources.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The regulatory agency
      might ultimately reject or modify Occidental&#146;s proposed remedial plan and insist upon a different course of
      action.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Additionally,
other events might occur that could affect Occidental&#146;s future remediation costs, such as:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The discovery of more
      extensive contamination than had been originally anticipated. For some sites with impacted groundwater, accurate definition of
      contaminant plumes requires years of monitoring data and computer modeling. Migration of  contaminants may follow unexpected
      pathways along geologic anomalies that could initially go undetected. Additionally, the size of the area requiring remediation
      may change based upon risk assessment results following site characterization or interim remedial
      measures.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Improved remediation
      technology might decrease the cost of remediation. In particular, for groundwater remediation sites with projected long-term
      operation and maintenance, the development of more effective treatment technology, or acceptance of alternative and more
      cost-effective treatment methodologies such as bioremediation, could significantly affect remediation
      costs.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Laws and regulations
      might change to impose more or less stringent remediation requirements.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 of the parties, the degree of their commitment to participate and the
consequences to Occidental of their failure to participate are evaluated when estimating Occidental's ultimate share of liability.
Based on these factors, Occidental believes that it will not be required to assume a share of liability of other potentially
responsible parties, with whom it is alleged to be jointly liable, in an amount that would have a material effect on
Occidental&#146;s consolidated financial position, liquidity or results of operations.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Most cost
sharing arrangements with other parties fall into one of the following three categories:</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
1:</u> CERCLA or state-equivalent sites wherein Occidental and other alleged potentially responsible parties share the cost of
remediation in accordance with negotiated or prescribed allocations;</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
2:</u> Oil and gas joint ventures wherein each joint venture partner pays its proportionate share of remedial cost; and</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
3:</u> Contractual arrangements typically relating to purchases and sales of property wherein the parties to the transaction agree
to methods of allocating the costs of environmental remediation.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In all
three of these categories, Occidental records as a reserve its expected net cost of remedial activities, as adjusted by recognition
for any nonperforming parties.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition to the costs of investigating and implementing remedial measures, which often take in excess of ten years at CERCLA sites,
Occidental&#146;s reserves include management&#146;s estimates of the cost of operation and maintenance of remedial systems. To the
extent that the remedial systems are modified over time in response to significant changes in site-specific data, laws, regulations,
technologies or engineering estimates, Occidental reviews and changes the reserves accordingly on a site-specific basis.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>If the
environmental reserve balance were to either increase or decrease based on the factors mentioned above, the amount of the increase
or decrease would be immediately recognized in earnings. For example, if the reserve balance were to decrease by 10 percent,
Occidental would record a pre-tax gain of $41 million. If the reserve balance were to increase by 10 percent, Occidental would
record an additional remediation expense of $41 million.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>29</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Other
Loss Contingencies</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
is involved with numerous lawsuits, claims, proceedings and audits in the normal course of its operations. Occidental records a loss
contingency for these matters when it is probable that an asset has been impaired or a liability has been incurred and the amount of
the loss can be reasonably estimated. In addition, Occidental discloses, in aggregate, its exposure to loss in excess of the amount
recorded on the balance sheet for these matters if it is reasonably possible that an additional material loss may be incurred.
Occidental reviews its loss contingencies on an ongoing basis so that they are adequately reserved on the balance sheet.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>These
reserves are based on judgments made by management with respect to the likely outcome of these matters and are adjusted as
appropriate. Management&#146;s judgments could change based on new information, changes in laws or regulations, changes in
management&#146;s plans or intentions, the outcome of legal proceedings, settlements or other factors.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SIGNIFICANT
ACCOUNTING CHANGES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Listed
below are significant changes in accounting principles.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 158</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued SFAS No. 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement
Plans&#151;an amendment of FASB Statements No. 87, 88, 106, and 132(R).&#148;  This statement requires an employer to recognize the
overfunded or underfunded amounts of its defined benefit pension and postretirement plans as an asset or liability and recognize
changes in the funded status of these plans in the year in which the changes occur through other comprehensive income (OCI), if they
are not recognized in the income statement. The statement also requires a company to use the date of its fiscal year-end to measure
the plans. The recognition and disclosure provisions of SFAS No. 158 are effective for fiscal years ending after December 15, 2006.
The requirement to use the fiscal year-end as the measurement date is effective for fiscal years ending after December 15, 2008.
Occidental adopted this statement on December 31, 2006, and recorded an additional liability of $233 million and a reduction of
accumulated OCI, deferred tax liabilities, other assets and minority interest of $168 million, $104 million, $42 million and $3
million, respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SAB
108</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the SEC issued Staff Accounting Bulletin (SAB) 108, &#147;Financial Statements &#150; Considering the Effects of
Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.&#148;  SAB 108 requires quantification
of the impact of all prior year misstatements from both an income statement and a balance sheet perspective to determine if the
misstatements are material. SAB 108 is effective for financial statements issued for fiscal years ending after November 15, 2006.
Occidental adopted SAB 108 effective December 31, 2006 and there was no material effect on the financial statements upon
adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>FIN
48</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In June
2006, the FASB issued FIN 48, &#147;Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109.&#148;
This interpretation specifies that benefits from tax positions should be recognized in the financial statements only when it is
more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority having full
knowledge of all relevant information. A tax position meeting the more-likely-than-not recognition threshold should be measured at
the largest amount of benefit for which the likelihood of realization upon ultimate settlement exceeds 50 percent. It also requires
additional disclosures related to these tax positions. FIN 48 is effective for fiscal years beginning after December 15, 2006.
Occidental will adopt FIN 48 in the first quarter of 2007 and expects there will not be a material effect on the financial
statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 157</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued SFAS No. 157, &#147;Fair Value Measurements.&#148; This statement establishes a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 is effective for financial statements
issued for fiscal years beginning after November 15, 2007. Occidental is currently assessing the effect of SFAS No. 157 on its
financial statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>FSP
AUG AIR-1</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued FASB Staff Position (FSP) AUG AIR-1, &#147;Accounting for Planned Major Maintenance
Activities.&#148; This FSP prohibits the use of the accrue-in-advance method of accounting for planned major maintenance activities
in annual and interim financial reporting periods. FSP AUG AIR-1 is effective for the first fiscal year beginning after December 15,
2006. Occidental will adopt FSP AUG AIR-1 in the first quarter of 2007 and expects there will not be a material effect on the
financial statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 06-4</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the Emerging Issues Task Force (EITF) finalized the provisions of EITF Issue No. 06-4, &#147;Accounting for Deferred
Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements&#148;. This EITF Issue
provides accounting guidance for endorsement split-dollar life insurance arrangements and require employers to recognize liability
for future benefits in accordance with SFAS 106 or Accounting Principles Board (APB) Opinion No. 12. The recognition and disclosure
provisions of EITF Issue No. 06-4 are effective for fiscal years ending after December 15, 2007. Occidental is currently assessing
the effect of this EITF Issue on its financial statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 06-5</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the EITF finalized the provisions of EITF Issue No. 06-5, &#147;Accounting for Purchase of Life
Insurance-Determining the Amount That Could Be Realized in Accordance with FASB Technical bulletin No. 85-4.&#148; This EITF Issue
provides accounting guidance for</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>30</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>life insurance policies and
requires employers to consider and account for any additional amounts or restrictions under the terms of such policies. The
recognition and disclosure provisions of EITF Issue No. 06-5 are effective for fiscal years beginning after December 15, 2006.
Occidental will adopt this EITF Issue in the first quarter of 2007 and expects there will not be a material effect on the financial
statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 123(R)</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>On July
1, 2005, Occidental early adopted the fair value recognition provisions of SFAS No. 123(R), "Share-Based Payments", under the
modified prospective transition method. Since most of Occidental&#146;s existing stock-based compensation was already being recorded
in the income statement, Occidental decided to early adopt SFAS 123(R) so that the remaining awards would be accounted for in a
similar manner. Prior to July 1, 2005, Occidental applied the APB Opinion No. 25 intrinsic value accounting method for its stock
incentive plans. Under the modified prospective transition method, the fair value recognition provisions apply only to new awards or
awards modified after July 1, 2005. Additionally, the fair value of existing unvested awards at the date of adoption is recorded in
compensation expense over the remaining requisite service period. Results from prior periods have not been restated. As a result of
adopting this statement in the third quarter of 2005, Occidental recorded a $3 million after-tax credit as a cumulative effect of a
change in accounting principles.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 04-13</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2005, the EITF finalized the provisions of EITF Issue No. 04-13, "Accounting for Purchases and Sales of Inventory with the
Same Counterparty", which provides accounting guidance about whether buy/sell arrangements should be accounted for at historical
cost and whether these arrangements should be reported on a gross or net basis. Buy/sell arrangements typically are contractual
arrangements where the buy and sell agreements are entered into in contemplation of one another with the same counterparty.
Occidental reports all buy/sell arrangements on a net basis and at historical cost. This Issue was effective in the first interim
period beginning after March 15, 2006. Occidental prospectively adopted this Issue in the second quarter of 2006 and there was no
material effect on the financial statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>DERIVATIVE
ACTIVITIES AND MARKET RISK</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
market risk exposures relate primarily to commodity prices and, to a lesser extent, interest rates and foreign currency exchange
rates. Occidental has entered into derivative instrument transactions to reduce these price and rate fluctuations. A derivative is
an instrument that, among other characteristics, derives its value from changes in another instrument or variable.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
general, the fair value recorded for derivative instruments is based on quoted market prices, dealer quotes and the Black Scholes or
similar valuation models.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Commodity
Price Risk</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>General</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
results are sensitive to fluctuations in crude oil and natural gas prices. Based on current levels of production, if oil prices vary
overall by $1 per barrel, it would have an estimated annual effect on pre-tax income of approximately $150 million. If natural gas
prices vary by $0.25 per Mcf, it would have an estimated annual effect on pre-tax income of approximately $51 million. If production
levels change in the future, the sensitivity of Occidental&#146;s results to oil and gas prices also would change.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
results are also sensitive to fluctuations in chemical prices; however, changes in cost usually offset part of the effect of price
changes on margins. If chlorine and caustic soda prices vary by $10/ton, it would have approximately a $15 million and $30 million
pre-tax annual effect on income, respectively. If PVC prices vary by $.01/lb, it would have approximately a $25 million pre-tax
annual effect on income. If ethylene dichloride (EDC) prices vary by $10/ton, it would have approximately a $5 million pre-tax
annual effect on income. Historically, price changes either precede or follow raw material and feedstock price changes; therefore,
the margin improvement of price changes can be mitigated. According to Chemical Market Associates, Inc., December 2006 average
contract prices were: chlorine&#151;$318/ton, caustic soda&#151;$338/ton, PVC&#151;$0.55/lb and EDC&#151;$310/ton.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Marketing
and Trading Operations</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
periodically uses different types of derivative instruments to achieve the best prices for oil and gas. Derivatives have been used
by Occidental to reduce its exposure to price volatility and to mitigate fluctuations in commodity-related cash flows. Occidental
enters into low-risk marketing and trading activities through its separate marketing organization, which operates under established
policy controls and procedures. With respect to derivatives used in its oil and gas marketing operations, Occidental utilizes a
combination of futures, forwards, options and swaps to offset various physical transactions. Occidental's use of derivatives in
marketing and trading activities relates primarily to managing cash flows from third-party purchases, which includes
Occidental&#146;s periodic gas storage activities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Risk
Management</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
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 Chief Financial Officer and the Risk Management
Committee, comprising members of Occidental's management, oversee these controls, which are implemented and enforced by the Trading
Control Officer. The Trading Control Officer provides an independent and separate check on results of marketing and trading
activities. Controls for energy commodities include limits on value at risk, limits on credit, limits on trading, segregation of
duties, delegation of authority and a number of other policy and procedural controls.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>31</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Fair
Value of Marketing and Trading Derivative Contracts</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following tables reconcile the changes in the net fair value of Occidental&#146;s marketing and trading contracts, a portion of
which are hedges, during 2006 and 2005 and segregate the open contracts at December 31, 2006 by maturity periods.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="64%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>In
      millions</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="64%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fair
      value of contracts outstanding at beginning of year &#150; unrealized (losses) gains</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(457</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>30</font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="64%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Losses
      on changes for contracts realized or otherwise settled during the year</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>106</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>56</font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="64%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Changes
      in fair value attributable to changes in valuation techniques and assumptions</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td></tr>
  <tr>
    <td width="64%" valign=bottom style="border-bottom:white 1.0pt solid">
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Losses
      or other changes in fair value</font></p></td>
    <td width="3%"></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(4</b></font></p></td>
    <td width="3%" valign=bottom style="border-bottom:white 1.0pt solid">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(543</font></p></td>
    <td width="4%" valign=bottom style="border-bottom:white 1.0pt solid">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="64%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fair
      value of contracts outstanding at end of year &#150; unrealized losses</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(355</b></font></p></td>
    <td width="3%" valign=bottom style="border-bottom:white 2.25pt double">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(457</font></p></td>
    <td width="4%" valign=bottom style="border-bottom:white 2.25pt double">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Primarily
      relates to production hedges.</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="29%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="11" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Maturity
      Periods</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="29%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Source of
      Fair Value &#150; unrealized (losses) gains</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2008
      to 2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2010
      to 2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2012 and
      thereafter</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total Fair
      Value</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="29%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Prices
      actively quoted</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(43</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(33</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="29%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Prices
      provided by other external sources</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>62</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>18</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>82</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="29%" valign=bottom>
      <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Prices
      based on models and other valuation methods <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(63</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(187</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(154</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(404</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="29%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(44</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(163</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(149</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(355</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>The
      underlying prices utilized for the 2007 through 2011 fair value calculations of the options are based on monthly NYMEX
      published prices. The underlying prices for years 2012 and thereafter are based on the year-end NYMEX published prices, as
      published monthly prices are not available. These prices are entered into an industry standard options pricing model to
      determine fair value.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Production
Hedges</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental entered into a series of fixed price swaps and costless collar agreements that qualify as cash-flow hedges for the sale
of a portion of its crude oil production. Additionally, Occidental acquired oil and gas fixed price and basis swaps with the Vintage
acquisition. These hedges continue to the end of 2011. The 2006 volume that was hedged was less than 4 percent of Occidental&#146;s
2006 crude oil and natural gas production. Information about these cash-flow hedges, which are included in the total fair value of
($355) million in the table above, is presented in a tabular presentation below as of December 31, 2006 (volumes in thousands of
barrels):</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      Oil</font></p></td></tr>
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fixed
      Price Swaps</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Costless
      Collars</font></p></td></tr>
  <tr>
    <td width="20%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Daily
      Volume</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      Price</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Daily
      Volume</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      Floor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      Cap</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>9</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$39.67</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&nbsp;7</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$40.43</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$45.21</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2008</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>14</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$34.07</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$47.47</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
     <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>13</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$33.15</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$47.41</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2010</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$33.00</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$46.35</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$32.92</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$46.27</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="7" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas Swaps</font></p></td></tr>
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fixed
      Price</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Basis</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(MMBTU/Day) <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Daily
      Volume</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      Price</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Daily
      Volume</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      Price</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,500</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$6.00</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,500</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$0.03</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>One
      MMBTU is one million British thermal units, which equals approximately 1 MCF.</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Crude
      Oil</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      Gas Swaps</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($
      millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fixed
      Price Swaps</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Costless
      Collars</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fixed
      Price</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Basis</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fair value
      liability</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($81)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($392)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($1)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($1)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>($475)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Quantitative
Information</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
uses value at risk to estimate the potential effects of changes in fair values of commodity-based derivatives and commodity
contracts used in marketing and trading activities. This method determines the maximum potential negative short-term change in fair
value with a 95-percent level of confidence. The marketing and trading value at risk was immaterial during all of 2006.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Interest
Rate Risk</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>General</i></b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
exposure to changes in interest rates relates primarily to its long-term debt obligations. In 2005, Occidental 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 recorded into income when the debt was paid in 2005 and 2006. The amount of interest expense recorded in the
income statement was lower, as a result of the swaps and recognition of the gain, by approximately $13 million, $21 million and $56
million for the years ended December 31, 2006, 2005 and 2004, respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
was a party to a series of forward interest-rate locks, which qualified as cash-flow hedges. The hedges were related to the
construction of a cogeneration plant leased by Occidental that was completed in December 2002. The unamortized loss on the hedges at
December 31, 2006 was approximately $18 million after-tax, which is recorded in accumulated OCI and is being recognized in earnings
over the lease term of 26 years on a straight-line basis.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b><i>Tabular
Presentation of Interest Rate Risk</i></b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions of U.S. dollars, except rates</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The table
below provides information about Occidental's debt obligations which are sensitive to changes in interest rates. Debt amounts
represent principal payments by maturity date.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Year of
      Maturity</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>U.S.
      Dollar
        <br>Fixed-Rate
        <br>Debt</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>U.S.
      Dollar
        <br>Variable-Rate
        <br>Debt</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Grand
      Total <sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>171</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>171</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2008</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>10</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>10</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>222</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>473</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>695</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2010</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>239</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>239</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>68</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>68</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2012</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>644</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="16%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>644</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Thereafter</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>901</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>46</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>947</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,187</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>587</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,774</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Average
      interest rate</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>7.54%</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>5.25%</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>7.06%</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Fair
      Value</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2,497</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>587</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="16%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3,084</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="50%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:1pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Excludes
      unamortized net premiums of $16 million.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>32</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Credit
Risk</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
energy contracts are spread among several counterparties. Creditworthiness is reviewed before doing business with a new counterparty
and on an ongoing basis. Occidental monitors aggregated counterparty exposure relative to credit limits. Credit exposure for each
customer is monitored for outstanding balances, current month activity, and forward mark-to-market exposure. Losses associated with
credit risk have been immaterial for all years presented.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Foreign
Currency Risk</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A few of
Occidental&#146;s foreign operations have currency risk. Occidental manages its exposure primarily by balancing monetary assets and
liabilities and maintaining cash positions only at levels necessary for operating purposes. Most international crude oil sales are
denominated in U.S. dollars. Additionally, all of Occidental&#146;s consolidated foreign oil and gas subsidiaries have the U.S.
dollar as the functional currency. At December 31, 2006 and 2005, Occidental had not entered into any foreign currency derivative
instruments. The effect of exchange-rate transactions in foreign currencies is included in periodic income and is
immaterial.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SAFE
HARBOR DISCUSSION REGARDING OUTLOOK AND OTHER FORWARD-LOOKING DATA</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Portions
of this report, including Items 1 and 2 and the information appearing under the caption "Management's Discussion and Analysis of
Financial Condition and Results of Operations," including the information under the sub captions "Strategy," "Oil and Gas Segment
&#151; Industry Outlook," and "Chemical Segment &#151; Industry Outlook," contain forward-looking statements and involve risks and
uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Words such
as "estimate," "project," "predict," "will," "anticipate," "plan," "intend," "believe," "expect" or similar expressions that convey
the uncertainty of future events or outcomes generally identify forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as 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&#146;s results of operations and financial position appear in Part I, Item 1A "Risk
Factors."</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>33</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
8&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</b></font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>MANAGEMENT'S
ANNUAL ASSESSMENT OF AND REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
management of Occidental Petroleum Corporation (Occidental) is responsible for establishing and maintaining adequate internal
control over financial reporting. Occidental&#146;s system of internal control over financial reporting is designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for
external purposes in accordance with generally accepted accounting principles. Occidental&#146;s internal control over financial
reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of Occidental&#146;s assets; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that Occidental&#146;s receipts and expenditures are being made only in accordance with authorizations of
Occidental&#146;s management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of Occidental&#146;s assets that could have a material effect on the financial
statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Management
has assessed the effectiveness of Occidental&#146;s internal control system as of December 31, 2006 based on the criteria for
effective internal control over financial reporting described in Internal Control&nbsp;&#151;&nbsp;Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management believes that, as
of December 31, 2006, Occidental&#146;s system of internal control over financial reporting is effective.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
independent auditors, KPMG LLP, have issued an attestation report on management&#146;s assessment of Occidental&#146;s internal
control over financial reporting.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>34</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON CONSOLIDATED FINANCIAL STATEMENTS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>To the Board of Directors and
Stockholders
  <br>Occidental Petroleum Corporation:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We have
audited the accompanying consolidated balance sheets of Occidental Petroleum Corporation and subsidiaries (the Company) as of
December 31, 2006 and 2005, and the related consolidated statements of income, stockholders&#146; equity, comprehensive income and
cash flows for each of the years in the three-year period ended December 31, 2006. In connection with our audits of the consolidated
financial statements, we also have audited the accompanying financial statement schedule. These consolidated financial statements
and financial statement schedule are the responsibility of the Company&#146;s management. Our responsibility is to express an
opinion on these consolidated financial statements and financial statement schedule based on our audits.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In our
opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Occidental Petroleum Corporation and subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their
cash flows for each of the years in the three-year period ended December 31, 2006, in conformity with U.S. generally accepted
accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth
therein.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As
explained in Note 3 to the consolidated financial statements, effective December 31, 2006, the Company changed its method of
accounting for defined benefit pension and other postretirement plans. Effective July 1, 2005, the Company changed its method of
accounting for share-based payments.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We also
have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness
of Occidental Petroleum Corporation&#146;s internal control over financial reporting as of December 31, 2006, based on criteria
established in Internal Control&nbsp;&#151;&nbsp;Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO), and our report dated February 27, 2007 expressed an unqualified opinion on management&#146;s assessment
of, and the effective operation of, internal control over financial reporting</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'>&nbsp;</p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>Los Angeles, California
  <br>February 27, 2007</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>35</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>To the Board of Directors and
Stockholders
  <br>Occidental Petroleum Corporation:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We have
audited management's assessment, included in the accompanying Management&#146;s Annual Assessment of and Report on Occidental&#146;s
Internal Control Over Financial Reporting, that Occidental Petroleum Corporation and its subsidiaries (the Company) maintained
effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal
Control&nbsp;&#151;&nbsp;Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The Company&#146;s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on
management's assessment and an opinion on the effectiveness of the Company&#146;s internal control over financial reporting based on
our audit.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We
conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over
financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over
financial reporting, evaluating management's assessment, testing and evaluating the design and operating effectiveness of internal
control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A
company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company&#146;s assets
that could have a material effect on the financial statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In our
opinion, management's assessment that the Company maintained effective internal control over financial reporting as of December 31,
2006, is fairly stated, in all material respects, based on criteria established in Internal Control&nbsp;&#151;&nbsp;Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Also, in our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, based on criteria
established in Internal Control&nbsp;&#151;&nbsp;Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>We also
have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated
balance sheets of Occidental Petroleum Corporation and subsidiaries as of December 31, 2006 and 2005 and the related consolidated
statements of income, stockholders&#146; equity, comprehensive income and cash flows for each of the years in the three-year period
ended December 31, 2006 and our report dated February 27, 2007 expressed an unqualified opinion on those consolidated financial
statements.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'>&nbsp;</p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>Los Angeles, California
  <br>February 27, 2007</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>36</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
      Statements of Income</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions, except per-share amounts</font></p></td>
    <td width="30%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="57%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>REVENUES</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,661</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,597</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,879</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest,
      dividends and other income</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>381</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>181</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>144</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gains
      on disposition of assets, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>118</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>870</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,160</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,648</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11,024</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>COSTS
      AND OTHER DEDUCTIONS</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:30pt;text-indent:-15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cost
      of sales (excludes depreciation, depletion and amortization of $2,011 in 2006, $1,383 in 2005 and $1,213 in 2004)</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,284</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,425</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,418</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Selling,
      general and administrative and other operating expenses</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,371</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,324</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>936</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      depreciation, depletion and amortization</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,042</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,422</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,251</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Environmental
      remediation</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>62</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expense</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>295</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>314</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>214</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest
      and debt expense, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>291</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>293</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>260</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10,330</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8,840</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,138</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>INCOME
      BEFORE TAXES AND OTHER ITEMS</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,830</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,808</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,886</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Provision
      for domestic and foreign income and other taxes</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,466</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,927</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,639</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minority
      interest</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>111</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>73</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>75</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from equity investments</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(182</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(232</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(113</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gain
      on Lyondell stock issuance</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(121</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>INCOME
      FROM CONTINUING OPERATIONS</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,435</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,040</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,406</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(253</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>238</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>162</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cumulative
      effect of changes in accounting principles, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>NET
      INCOME</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>BASIC
      EARNINGS PER COMMON SHARE</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.20</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.25</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.04</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(0.30</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.30</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.20</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>BASIC
      EARNINGS PER COMMON SHARE</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.90</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.55</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.24</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DILUTED
      EARNINGS PER COMMON SHARE</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.15</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.16</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.00</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(0.29</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.29</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.20</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DILUTED
      EARNINGS PER COMMON SHARE</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.86</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.45</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.20</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="57%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DIVIDENDS
      PER COMMON SHARE</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.80</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.645</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.55</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td colspan="11" valign=bottom>
      <p style='margin-bottom:0pt;margin-top:6pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'>The
      accompanying notes are an integral part of these consolidated financial statements.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>37</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
      Balance Sheets</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p></td>
    <td width="30%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Assets at
      December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>CURRENT
      ASSETS</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Cash
      and cash equivalents</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,339</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2,188</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Short-term
      investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>240</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>252</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Trade
      receivables, net of reserves of $15 in 2006 and $27 in 2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,825</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2,531</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Receivables
      from joint ventures, partnerships and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>499</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Inventories</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>825</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>716</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Prepaid
      expenses and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>256</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>255</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Assets
      of discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>427</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:27.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font face="arial narrow, arial" style='font-size:9pt'><b>Total
      current assets</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>6,937</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>LONG-TERM
      RECEIVABLES, NET</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:22.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>231</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:22.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>377</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>INVESTMENTS
      IN UNCONSOLIDATED ENTITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:22.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,344</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:22.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>1,209</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:22.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>PROPERTY,
      PLANT AND EQUIPMENT </b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Oil
      and gas segment, successful efforts method</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30,307</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>21,598</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Chemical
      segment</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,070</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>4,869</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Corporate
      and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>730</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>478</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>36,107</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>26,945</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Accumulated
      depreciation, depletion and amortization</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(11,791</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(9,774</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,316</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:8.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>17,171</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>OTHER
      ASSETS</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:16.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>458</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:16.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>414</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>26,108</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td colspan="8" valign=bottom>
      <p style='margin-top:6pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'>The
      accompanying notes are an integral part of these consolidated financial statements.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>38</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
      Balance Sheets</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions, except share and per-share amounts</font></p></td>
    <td width="30%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="79%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      and Stockholders&#146; Equity at December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:7.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CURRENT
      LIABILITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      maturities of long-term debt and capital lease liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>171</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accounts
      payable</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,263</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,046</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accrued
      liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,575</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,569</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dividends
      payable</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>188</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>147</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Domestic
      and foreign income taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>396</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>326</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      of discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>131</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>138</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><b><font face="arial narrow,arial" style='font-size:9pt'>Total
      current liabilities</font></b></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,724</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,272</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>LONG-TERM
      DEBT, NET OF CURRENT MATURITIES AND UNAMORTIZED NET PREMIUM</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:16.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,619</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:16.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,873</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DEFERRED
      CREDITS AND OTHER LIABILITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      and other domestic and foreign income taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,326</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>970</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      liabilities of discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>195</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,966</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,621</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,487</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,591</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CONTINGENT
      LIABILITIES AND COMMITMENTS</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>MINORITY
      INTEREST</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>341</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>340</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>STOCKHOLDERS'
      EQUITY</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:28.5pt;text-indent:-13.5pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Common
      stock, $.20 par value; authorized 1.1 billion shares; outstanding shares: 2006 &#151; 870,678,608 and 2005 &#151;
      804,430,050</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>174</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>161</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Treasury
      stock: 2006 &#151; 30,760,490 shares and 2005 &#151; 193,562 shares</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,481</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(8</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Additional
      paid-in capital</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,905</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,827</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Retained
      earnings</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>13,919</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,425</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accumulated
      other comprehensive loss</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(333</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(373</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19,184</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,032</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26,108</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td colspan="8" valign=bottom>
      <p style='margin-top:6pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'>The
      accompanying notes are an integral part of these consolidated financial statements.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>39</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
      Statements of Stockholders&#146; Equity</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p></td>
    <td width="30%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="37%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Common
        <br>Stock <sup>(a)</sup></font></p></td>
    <td width="2%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Treasury
        <br>Stock</font></p></td>
    <td width="2%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Additional
        <br>Paid-in
        <br>Capital <sup>(a)</sup></font></p></td>
    <td width="2%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Retained
        <br>Earnings</font></p></td>
    <td width="2%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Accumulated
        <br>Other
        <br>Comprehensive
        <br>Income(Loss)</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Balance,
      December 31, 2003</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>155</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>4,194</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>3,530</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>50</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Other
      comprehensive income, net of tax</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>105</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Dividends
      on common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(434</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Issuance
      of common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Exercises
      of options and other, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>4</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>370</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font><u></u></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Balance,
      December 31, 2004</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>159</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>4,572</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>5,664</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>155</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Other
      comprehensive loss, net of tax</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(528</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Dividends
      on common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(520</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Issuance
      of common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>16</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Exercises
      of options and other, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>239</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Purchases
      of treasury stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(8</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Balance,
      December 31, 2005</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>161</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(8</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>4,827</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>10,425</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(373</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Other
      comprehensive income, net of tax</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>40</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Dividends
      on common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(688</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Issuance
      of common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>11</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'>&nbsp;<b><sup>(b)</sup></b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>2,064</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'>&nbsp;<b><sup>(c)</sup></b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Exercises
      of options and other, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>14</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Purchases
      of treasury stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(1,473</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="37%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>Balance,
      December 31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>174</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(1,481</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>6,905</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>13,919</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(333</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>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.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Amount
      represents stock issued for the Vintage acquisition.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Includes
      $2,054 for stock issued for the Vintage acquisition.</font></p></td></tr></table>

<p style='text-align:left;margin-top:36pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
Statements of Comprehensive Income</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="60%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      comprehensive income(loss) items:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      currency translation adjustments <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Derivative
      mark-to-market adjustments <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>88</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(330</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      and post-retirement adjustments <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(168</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minimum
      pension liability adjustments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reclassification
      of realized gains <sup>(d)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(59</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(463</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:24.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unrealized
      gains on securities <sup>(e)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>177</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>279</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>95</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      comprehensive (loss) income, net of tax</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>40</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(528</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>105</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Comprehensive
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,222</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,753</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,673</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Net of tax
      of $0, $13 and $1 in 2006, 2005 and 2004, respectively.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Net of tax
      of $50, $188 and $4 in 2006, 2005 and 2004, respectively.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Net of tax
      of $104 in 2006. See Note 13 for further information.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Net of tax
      of $34 and $264 in 2006 and 2005, respectively. Amounts represent the recognition of the 2006 gain on the partial sale of
      Lyondell shares and the 2005 gain due to Valero Energy Corporation&#146;s acquisition of Premcor, Inc. and the subsequent sale
      of the Valero shares.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>Net of tax
      of $102, $165 and $51 in 2006, 2005 and 2004, respectively.</font></p></td></tr>
  <tr>
    <td colspan=2 valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:8pt'>The
      accompanying notes are an integral part of these consolidated financial statements.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>40</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Consolidated
      Statements of Cash Flows</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p></td>
    <td width="30%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="66%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CASH FLOW
      FROM OPERATING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Adjustments
      to reconcile net income to net cash provided by operating activities:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      Operations, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>253</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(238</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(162</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cumulative
      effect of changes in accounting principles, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization of assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,042</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,422</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,251</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reversal
      of tax reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(954</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(47</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      income tax (benefit) provision</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>85</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(74</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>173</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      noncash charges to income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>588</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>812</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>415</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gains
      on disposition of assets, net </font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(118</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(870</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from equity investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(182</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(232</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(113</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gain
      on Lyondell stock issuance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(121</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dry
      hole and impairment expense</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>114</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>220</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>155</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Changes
      in operating assets and liabilities:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Increase
      in accounts and notes receivable</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(81</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(670</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,053</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Increase
      in inventories</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(77</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(121</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(92</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Increase
      in prepaid expenses and other assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(119</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(36</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(57</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(Decrease)
      increase in accounts payable and accrued liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(215</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>532</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>740</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(Decrease)
      increase in current domestic and foreign income taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(57</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>201</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>92</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(234</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(244</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(149</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operating
      cash flow from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,181</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,026</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,599</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operating
      cash flow from discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>172</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>311</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>279</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      cash provided by operating activities</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,353</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,337</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,878</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CASH FLOW
      FROM INVESTING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Capital
      expenditures</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,005</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,324</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,720</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sale
      of businesses and disposal of property, plant and equipment, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>982</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>185</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchase
      of businesses, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,545</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,126</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(208</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchase
      of short-term investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(177</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(185</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(260</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sale
      of short-term investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>190</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>183</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>120</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of equity investments and available-for-sale investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>251</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,122</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Equity
      investments and other, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(74</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>83</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(245</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investing
      cash flow from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,378</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,062</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,304</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investing
      cash flow from discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(99</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(124</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      cash used by investing activities</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,383</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,161</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,428</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CASH FLOW
      FROM FINANCING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proceeds
      from long-term debt</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>173</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>236</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>60</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Payments
      of long-term debt and capital lease liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,066</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,134</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(239</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proceeds
      from issuance of common stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of treasury stock</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,473</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(8</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Repurchase
      of trust preferred securities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(466</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      dividends paid</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(646</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(483</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(424</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Stock
      options exercised</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>46</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>126</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>238</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Excess
      tax benefits related to share-based payments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>140</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      financing, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Financing
      cash flow from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,819</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,186</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(824</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Financing
      cash flow from discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='margin-left:30pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      cash used by financing activities</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,819</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,187</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(821</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>(Decrease)
      Increase in cash and cash equivalents</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(849</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>989</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>629</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Cash and
      cash equivalents &#151; beginning of year</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,188</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,199</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>570</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Cash and
      cash equivalents &#151; end of year</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,339</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,188</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,199</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td colspan="10" valign=top>
      <p style='margin-top:6pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'>The
      accompanying notes are an integral part of these consolidated financial statements.</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>41</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="70%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Notes
      to Consolidated Financial Statements</b></font></td>
    <td width="30%" valign=top>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
1&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>NATURE
OF OPERATIONS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In these
Notes, the term "Occidental" or "the Company" refers to Occidental Petroleum Corporation (OPC) and/or one or more entities where it
owns a majority voting interest (subsidiaries). Occidental is a multinational organization whose principal business segments are
operated by its oil and gas subsidiaries and chemical subsidiaries. The subsidiaries and other affiliates in the oil and gas segment
explore for, develop, produce and market crude oil and natural gas. The subsidiaries and other affiliates in the chemical segment
(OxyChem) manufacture and market basic chemicals, vinyls and performance chemicals.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>On August
1, 2006, Occidental effected a two-for-one stock split in the form of a stock dividend to shareholders of record as of that date
with distribution of the shares on August 15, 2006. The total number of authorized shares of common stock and associated par value
per share were unchanged by this action. All share and per-share amounts discussed and disclosed in this Annual Report on Form 10-K
reflect the effect of the stock split.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>PRINCIPLES
OF CONSOLIDATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
consolidated financial statements include the accounts of OPC, its subsidiaries, variable-interest entities (VIE) in which it is the
primary beneficiary and its undivided interests in oil and gas exploration and production ventures. Occidental's proportionate share
of oil and gas exploration and production ventures, in which it has a direct working interest, is accounted for by reporting its
proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets, income
statements and cash flow statements.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition, certain financial statements, notes and supplementary data for prior years have been reclassified to conform to the 2006
presentation.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>INVESTMENTS
IN UNCONSOLIDATED ENTITIES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Investments
in unconsolidated entities include both equity method and available-for-sale investments. Amounts representing Occidental&#146;s
percentage interest in the underlying net assets of affiliates (excluding undivided interests in oil and gas exploration and
production ventures) in which it does not have a majority voting interest but as to which it exercises significant influence, are
accounted for under the equity method. Occidental records its share of gains or losses that arise from equity-method investee stock
issuances in the income statement. Occidental reviews equity method investments for impairment whenever events or changes in
circumstances indicate that an other-than-temporary decline in value has occurred. The amount of impairment, if any, is based on
quoted market prices, where available, or other valuation techniques, including discounted cash flows.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Investments
in which Occidental does not exercise significant influence are accounted for as available-for-sale investments and are carried at
fair value, based on quoted market prices, with unrealized gains and losses reported in other comprehensive income (OCI), net of
taxes, until such investment is realized. Upon disposal, the accumulated unrealized gain or loss included in OCI is transferred to
income.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>REVENUE
RECOGNITION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Revenue
is recognized from oil and gas production when title has passed to the customer, which occurs when the product is shipped. Revenue
from marketing and trading activities is recognized on settled transactions upon completion of contract terms, and for physical
deliveries upon title transfer. For unsettled transactions, contracts that meet specified accounting criteria are marked-to-market.
Revenue from all marketing and trading activities, including revenue from buy/sell arrangements with the same counterparty, is
reported on a net basis.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Revenue
from chemical product sales is recognized when the product is shipped and title has passed to the customer. Prices are fixed at the
time of shipment. Customer incentive programs provide for payments or credits to be made to customers based on the volume of product
purchased over a defined period. Total customer incentive payments over a given period are estimated and recorded as a reduction to
revenue ratably over the contract period. Such estimates are evaluated and revised as warranted.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
records revenue net of taxes that are assessed by governmental authorities on Occidental's customers.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>RISKS
AND UNCERTAINTIES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
process of preparing consolidated financial statements in conformity with United States generally accepted accounting principles
(GAAP) requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues and expenses. Such
estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements.
Accordingly, upon settlement, actual results may differ from estimated amounts, but generally not by material amounts. Management
believes that these estimates and assumptions provide a reasonable basis for the fair presentation of Occidental&#146;s financial
position and results of operations.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>42</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Included
in the accompanying consolidated balance sheet are deferred tax assets of $1.4 billion as of December 31, 2006, the noncurrent
portion of which is netted against deferred income tax liabilities. Realization of these assets is dependent upon Occidental
generating sufficient future taxable income. Occidental expects to realize the recorded deferred tax assets through future operating
income and reversal of temporary differences.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
accompanying consolidated financial statements include assets of approximately $9.2 billion as of December 31, 2006, and net sales
of approximately $5.6 billion for the year ended December 31, 2006, relating to Occidental&#146;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 and sanctions that
prevent continued operations, all of which increase Occidental's risk of loss or delayed or restricted production or may result in
other adverse consequences. Occidental attempts to conduct its financial affairs so as to mitigate its exposure against such risks
and would seek compensation in the event of nationalization.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since
Occidental&#146;s major products are commodities, significant changes in the prices of oil and gas and chemical products may have a
significant impact on Occidental&#146;s results of operations for any particular year.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Also, see
"Property, Plant and Equipment" below.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CASH
AND CASH EQUIVALENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Cash
equivalents are short-term, highly liquid investments that are readily convertible to cash. Cash equivalents totaled approximately
$1.3 billion and $2.2 billion at December 31, 2006 and 2005, respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SHORT-TERM
INVESTMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
short-term investments consist of highly liquid debt securities classified as available-for-sale. Short-term investments are
marked-to-market with any unrealized gains or losses included in accumulated other comprehensive income (AOCI). At December 31, 2006
and 2005, Occidental's short-term investments solely comprise auction-rate securities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>INVENTORIES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For the
oil and gas segment, materials and supplies are valued at the lower of average cost or market. Inventories are reviewed periodically
for obsolescence. Oil and natural gas liquids (NGLs) inventories and natural gas trading and storage inventory are valued at the
lower of cost or market.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For the
chemical segment, Occidental generally values its inventories using the last-in, first-out (LIFO) method as it better matches
current costs and current revenue. Accordingly, Occidental accounts for most of its domestic inventories in its chemical business,
other than materials and supplies, on the LIFO method. For other countries, Occidental uses the first-in, first-out (FIFO) method
(if the costs of goods are specifically identifiable) or the average-cost method (if the costs of goods are not specifically
identifiable). Occidental accounts for materials and supplies using a weighted average cost method.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>PROPERTY,
PLANT AND EQUIPMENT</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Oil and Gas</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Property
additions and major renewals and improvements are capitalized at cost. Interest costs incurred in connection with major capital
expenditures are capitalized and amortized over the lives of the related assets (see Note&nbsp;18).</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
uses the successful efforts method to account for its oil and gas properties. Under this method, costs of acquiring properties,
costs of drilling successful exploration wells and development costs are capitalized. The costs of exploratory wells are initially
capitalized pending a determination of whether proved reserves have been found. At the completion of drilling activities, the costs
of exploratory wells remain capitalized if a determination is made that proved reserves have been found. If no proved reserves have
been found, the costs of each of the related exploratory wells are charged to expense. In some cases, a determination of proved
reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. Occidental's
practice is to expense the costs of such exploratory wells if a determination of proved reserves has not been made within a
twelve-month period after drilling is complete. Occidental has no proved oil and gas reserves for which the determination of
commercial viability is subject to the completion of major additional capital expenditures. Annual lease rentals and geological,
geophysical and seismic costs are expensed as incurred.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>43</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table summarizes the activity of capitalized exploratory well costs for the past three years:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="63%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="63%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance
      &#151; Beginning of Year</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>46</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="63%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-.1in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Additions
      to capitalized exploratory well costs pending the determination of proved reserves</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="63%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-.1in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reclassifications
      to property, plant and equipment based on the determination of proved reserves</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(23</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="63%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Capitalized
      exploratory well costs charged to expense</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="63%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance
      &#151; End of Year</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>46</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Proved
oil and gas reserves are the estimated quantities of crude oil, natural gas, and NGLs that geological and engineering data
demonstrate, with reasonable certainty, can be recovered in future years from known reservoirs under existing economic and operating
conditions considering future production and development costs. Depreciation and depletion of oil and gas producing properties is
determined by the unit-of-production method.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
carrying value of Occidental&#146;s property, plant and equipment (PP&amp;E) is based on the cost incurred to acquire the PP&amp;E,
net of accumulated depreciation, depletion and amortization (DD&amp;A) and net of any impairment charges. For acquisitions of a
business, PP&amp;E cost is determined by an allocation of total purchase price to the components of PP&amp;E based on their
estimated fair values at the date of acquisition. Occidental is required to perform impairment tests on its assets whenever events
or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate
that the carrying amount may not be recoverable, or when management&#146;s plans change with respect to those assets. Occidental
assesses assets for impairment by comparing undiscounted future cash flows of an asset to its carrying value. Impaired assets are
written down to their estimated fair values, generally their estimated discounted future net pre-tax cash flows.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A portion
of the carrying value of Occidental&#146;s oil and gas properties are attributable to unproved properties. At December 31, 2006, the
capitalized costs attributable to unproved properties, net of accumulated valuation allowance, were $1.7 billion. The acquisition of
Vintage Petroleum, Inc. (Vintage) resulted in an addition of $1.3 billion of unproved properties in 2006. No goodwill was recorded
on this transaction. During 2006, approximately $300 million of the unproved property amount was moved to proved properties. The
unproved amounts are not subject to DD&amp;A or impairment until a determination is made as to the existence of proven reserves. As
exploration and development work progresses, if reserves on these properties are proven, capitalized costs attributable to the
properties will be subject to depreciation and depletion. If the exploration and development work were to be unsuccessful, the
capitalized costs of the properties related to this unsuccessful work would be expensed in the year in which the determination was
made. The timing of any writedowns of these unproven properties, if warranted, depends upon the nature, timing and extent of future
exploration and development activities and their results. Occidental believes its exploration and development efforts will allow it
to realize the unproved property balance.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Chemical</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
chemical plants are depreciated using either the unit-of-production or straight-line method based upon the estimated useful life of
the facilities.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
estimated useful lives of Occidental&#146;s chemical assets, which range from 3 years to 50 years, are used to compute depreciation
expense and are also used for impairment tests. The estimated useful lives used for the chemical facilities are based on the
assumption that Occidental will provide an appropriate level of annual expenditures to ensure productive capacity is sustained.
Without these continued expenditures, the useful lives of these plants could significantly decrease. Other factors that could change
the estimated useful lives of Occidental&#146;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.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
performs impairment tests on its chemical assets whenever events or changes in circumstances lead to a reduction in the estimated
useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when
management&#146;s plans change with respect to those assets. Occidental compares the undiscounted future cash flows of an asset to
its carrying value. The key factors that could significantly affect future cash flows are future product prices, which are
particularly affected by both domestic and foreign competition, feedstock costs, energy costs, regulations and remaining estimated
useful life. Impaired assets are written down to their estimated fair values.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Due to a
temporary decrease in demand for some of its products, Occidental temporarily idled an ethylene dichloride plant in June 2001 and a
chlor-alkali plant in December 2001. Subsequent to the purchase of the Vulcan Materials Company (Vulcan) chemical assets, Occidental
reviewed all of its chemical assets and decided to close its least competitive plants and upgrade the remaining operations. As a
result of this review, Occidental recorded a $139 million pre-tax charge for the write-off of two previously idled chemical plants
and one operating plant and an additional pre-tax charge of $20 million for the write-down of another chemical plant in
2005.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>44</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ACCRUED
LIABILITIES &#151; CURRENT</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Accrued
liabilities include accrued payroll, commissions and related expenses of $277 million and $240 million at December 31, 2006 and
2005, respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ENVIRONMENTAL
LIABILITIES AND EXPENDITURES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Environmental
expenditures that relate to current operations are expensed or capitalized as appropriate. Reserves for estimated costs that relate
to existing conditions caused by past operations and that do not contribute to current or future revenue generation are recorded
when environmental remedial efforts are probable and the costs can be reasonably estimated. In determining the reserves and the
reasonably possible range of loss, Occidental refers to currently available information, including relevant past experience,
available technology, regulations in effect, the timing of remediation and cost-sharing arrangements. The environmental reserves are
based on management&#146;s estimate of the most likely cost to be incurred and are reviewed periodically and adjusted as additional
or new information becomes available. Environmental reserves are recorded on a discounted basis only when a reserve is initially
established and the aggregate amount of the estimated costs for a specific site and the timing of cash payments are reliably
determinable. The reserve methodology for a specific site is not modified once it has been established. Recoveries and
reimbursements are recorded in income when receipt is probable. As of December 31, 2006 and 2005, Occidental has not accrued any
reimbursements or indemnification recoveries for environmental remediation matters as assets.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Many
factors could result in changes to Occidental&#146;s environmental reserves and reasonably possible range of loss. The most
significant are:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The original cost
      estimate may have been inaccurate.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Modified remedial
      measures might be necessary to achieve the required remediation results. Occidental generally assumes that the remedial
      objective can be achieved using the most cost-effective technology reasonably expected to achieve that objective. Such
      technologies may include air sparging or phyto-remediation of shallow groundwater, or limited surface soil removal or in-situ
      treatment producing acceptable risk assessment results. Should such remedies fail to achieve remedial objectives, more
      intensive or costly measures may be required.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The remedial measure
      might take more or less time than originally anticipated to achieve the required contaminant reduction. Site-specific time
      estimates can be affected by factors such as groundwater capture rates, anomalies in subsurface geology, interactions between
      or among water-bearing zones and non-water-bearing zones, or the ability to identify and control contaminant
      sources.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The regulatory agency
      might ultimately reject or modify Occidental&#146;s proposed remedial plan and insist upon a different course of
      action.</font></p></td></tr></table>

<p style='margin-top:15pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Additionally,
other events might occur that could affect Occidental&#146;s future remediation costs, such as:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">The discovery of more
      extensive contamination than had been originally anticipated. For some sites with impacted groundwater, accurate definition of
      contaminant plumes requires years of monitoring data and computer modeling. Migration of contaminants may follow unexpected
      pathways along geologic anomalies that could initially go undetected. Additionally, the size of the area requiring remediation
      may change based upon risk assessment results following site characterization or interim remedial
      measures.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Improved remediation
      technology might decrease the cost of remediation. In particular, for groundwater remediation sites with projected long-term
      operation and maintenance, the development of more effective treatment technology, or acceptance of alternative and more
      cost-effective treatment methodologies such as bioremediation, could significantly affect remediation
      costs.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="wingdings" style='font-size:9pt'>&Oslash;</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial" style="font-size:9pt">Laws and regulations
      might change to impose more or less stringent remediation requirements.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 of the parties, the degree of their commitment to participate and the
consequences to Occidental of their failure to participate are evaluated when estimating Occidental's ultimate share of liability.
Based on these factors, Occidental believes that it will not be required to assume a share of liability of other potentially
responsible parties, with whom it is alleged to be jointly liable, in an amount that would have a material effect on
Occidental&#146;s consolidated financial position, liquidity or results of operations.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Most
cost sharing arrangements with other parties fall into one of the following three categories:</font></p>

<p style='margin-top:3pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
1</u>: Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) or state-equivalent sites wherein Occidental
and other alleged potentially responsible parties share the cost of remediation in accordance with negotiated or prescribed
allocations;</font></p>

<p style='margin-top:3pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
2</u>: Oil and gas joint ventures wherein each joint venture partner pays its proportionate share of remedial cost; and</font></p>

<p style='margin-top:3pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'><u>Category
3</u>: Contractual arrangements typically relating to purchases and sales of property wherein the parties to the transaction agree
to methods of allocating the costs of environmental remediation.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>45</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In all
three of these categories, Occidental records as a reserve its expected net cost of remedial activities, as adjusted by recognition
for any nonperforming parties.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
addition to the costs of investigating and implementing remedial measures, which often take in excess of ten years at CERCLA sites,
Occidental&#146;s reserves include management&#146;s estimates of the cost of operation and maintenance of remedial systems. To the
extent that the remedial systems are modified over time in response to significant changes in site-specific data, laws, regulations,
technologies or engineering estimates, Occidental reviews and changes the reserves accordingly on a site-specific basis.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ASSET
RETIREMENT OBLIGATIONS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In the
period in which an asset retirement obligation is incurred or becomes reasonably estimable, Occidental recognizes the fair value of
the liability if there is a legal obligation to dismantle the asset and reclaim or remediate the property at the end of its useful
life. The liability amounts are based on future retirement cost estimates and incorporate many assumptions such as expected economic
recoveries of oil and gas, time to abandonment, future inflation rates and the adjusted risk-free rate of interest. When the
liability is initially recorded, Occidental capitalizes the cost by increasing the related PP&amp;E balances. Over time, the
liability is increased and expense is recognized for the change in its present value, and the initial capitalized cost is
depreciated over the useful life of the asset. No market risk premium has been included in Occidental&#146;s liability since no
reliable estimate can be made at this time.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has 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 the fair value of these conditional liabilities if they could be reasonably estimated.
However, Occidental believes that there is an indeterminate settlement date for these asset retirement obligations because the range
of time over which Occidental may settle these obligations is unknown or cannot be estimated. Therefore, Occidental cannot
reasonably estimate the fair value of these liabilities. Occidental will recognize these conditional asset retirement obligations in
the periods in which sufficient information becomes available to reasonably estimate their fair values.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table summarizes the activity of the asset retirement obligation, of which $360 million and $228 million is included in
deferred credits and other liabilities - other, with the remaining current portion in accrued liabilities at December 31, 2006 and
2005, respectively.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Beginning balance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>233</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>206</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      incurred</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      settled</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(13</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(6</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accretion
      expense</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Acquisitions
      and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>62</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions to
      estimated cash flows</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>42</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(10</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Ending
      balance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>376</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>233</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>DERIVATIVE
INSTRUMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>All
derivative instruments required to be marked-to-market under Statement of Financial Accounting Standards (SFAS) No. 133, as amended,
are carried at fair value. Cash flow hedge realized gains and losses, and any ineffectiveness, are classified within the net sales
line item. Gains and losses are netted in the income statement and are netted on the balance sheets when a right of offset
exists.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
applies either fair value or cash flow hedge accounting when transactions meet specified criteria for hedge accounting treatment. If
the derivative does not qualify as a hedge or is not designated as a hedge, the gain or loss is immediately recognized in earnings.
If the derivative qualifies for hedge accounting and is designated and documented as a hedge, the gain or loss on the derivative is
either recognized in income with an offsetting adjustment to the basis of the item being hedged for fair value hedges, or deferred
in OCI to the extent the hedge is effective for cash flow hedges.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A hedge
is regarded as highly effective and qualifies for hedge accounting if, at inception and throughout its life, it is expected that
changes in the fair value or cash flows of the hedged item are almost fully offset by the changes in the fair value or changes in
cash flows of the hedging instrument and actual effectiveness is within a range of 80 to 125 percent. In the case of hedging a
forecasted transaction, the transaction must be highly probable and must present an exposure to variations in cash flows that could
ultimately affect reported net income or loss. Occidental discontinues hedge accounting when it determines that a derivative has
ceased to be highly effective as a hedge; when the derivative expires, or is sold, terminated, or exercised; when the hedged item
matures or is sold or repaid; when a forecasted transaction is no longer deemed highly probable; or when the derivative is no longer
designated as a hedge.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>46</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>FINANCIAL
INSTRUMENTS FAIR VALUE</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
values financial instruments as required by SFAS No. 107, "Disclosures about Fair Value of Financial Instruments."  The carrying
amounts of cash and cash equivalents approximate fair value because of the short maturity of those instruments. The carrying value
of other on-balance-sheet financial instruments, other than fixed-rate debt, approximates fair value, and the cost, if any, to
terminate off-balance-sheet financial instruments is not significant.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>STOCK-BASED
INCENTIVE PLANS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has established several shareholder-approved stock-based incentive plans for certain employees (Plans) that are more fully described
in Note 12. Beginning July 1, 2005, Occidental accounted for those Plans under SFAS No. 123(R), "Share Based Payments."  Prior to
July 1, 2005, Occidental applied the Accounting Principles Board (APB) Opinion No. 25, &#147;Accounting for Stock Issued to
Employees,&#148; intrinsic value accounting method for its stock-based incentive plans. A summary of Occidental&#146;s accounting
policy under each method follows below.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 123(R)</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
restricted stock units (RSUs) and performance restricted share units (PRSUs), compensation expense is measured on the grant date
using the quoted market price of Occidental&#146;s common stock. For stock options (Options), stock-settled stock appreciation
rights (SARs) and performance stock awards (PSAs), compensation expense is measured on the grant date using valuation models.
Compensation expense for RSUs, PRSUs, Options, stock-settled SARs and PSAs, is recognized on a straight-line basis over the
requisite service periods, which is generally over the awards&#146; respective vesting or performance periods. For the PSAs, every
quarter until vesting, the cash-settled portion is revalued using valuation models and the stock settled portion is adjusted for any
change in the number of shares expected to be issued based on the performance criteria. For the PRSUs, compensation expense is
adjusted for any change in the number of shares expected to be issued based on the performance criteria. Any change in fair value is
recognized as compensation expense. For cash-settled SARs issued prior to the adoption of SFAS 123(R), compensation expense is
initially measured on the grant date using a valuation model and then is recorded on the accelerated amortization method over the
vesting period. Changes in the fair value between the date of grant and the date when the cash-settled SARs are exercised are
recognized as compensation expense. Occidental recognizes compensation expense for all graded vesting awards issued subsequent to
the adoption of SFAS 123(R) on the straight-line method.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>APB
Opinion No. 25</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Through
June 30, 2005, compensation expense for Options and RSUs, if any, was measured as the difference between 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 was measured for each period based on the number of shares expected to vest and the changes in the quoted market value of
Occidental's stock during the vesting period. Compensation expense or benefit for PSAs, as applicable, was recognized on a
straight-line basis over the vesting periods of the awards. Compensation expense for SARs, which was recorded on the accelerated
amortization method over the vesting period, was measured as the amount by which the quoted market value of Occidental's stock
exceeded the SAR exercise price. The effect of changes in Occidental's share price between the date of grant and the date when the
SARs were exercised or expired was recognized as compensation expense in each period.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>SUPPLEMENTAL
CASH FLOW INFORMATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Cash
payments, net of refunds, during the years 2006, 2005 and 2004 included federal, foreign and state income taxes of approximately
$2.175 billion, $1.759 billion and $905 million, respectively. Interest paid (net of interest capitalized) totaled approximately
$211 million, $253 million and $205 million for the years 2006, 2005 and 2004, respectively. Net cash payments for federal, foreign
and state income taxes paid by discontinued operations during the years 2006, 2005 and 2004 were $57 million, $85 million and $26
million, respectively. (See Note 2 for detail of noncash investing and financing activities regarding certain
acquisitions.)</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>FOREIGN
CURRENCY TRANSACTIONS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
functional currency applicable to all of Occidental&#146;s foreign oil and gas operations is the U.S. dollar since cash flows are
denominated principally in U.S. dollars. Occidental&#146;s chemical operations in Brazil use the Real as the functional currency.
Exchange-rate changes on transactions denominated in non-U.S. dollar functional currencies generated losses of zero in 2006, $9
million in 2005 and $13 million in 2004.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>47</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
2&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS COMBINATIONS AND ASSET ACQUISITIONS AND DISPOSITIONS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>2006</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2006, Occidental completed the merger of Vintage into a wholly-owned Occidental subsidiary. As a result, Occidental acquired
assets in Argentina, California, Yemen, Bolivia and the Permian Basin in Texas. Occidental paid approximately $1.3 billion in cash
to former Vintage shareholders, issued approximately 56 million shares of Occidental common stock, which were valued at $2.1
billion, and assumed Vintage&#146;s debt, which had an estimated fair market value of $585 million at closing. Occidental believes
that the merger provides significant growth opportunities represented by Vintage&#146;s assets in Argentina, California and Yemen,
all of which will complement and enhance Occidental&#146;s current operations and production.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
acquisition was accounted for in accordance with SFAS No.&nbsp;141, &#147;Business Combinations.&#148; The results of Vintage&#146;s
operations have been included in the consolidated financial statements since January 30, 2006. The assets acquired and liabilities
assumed were recorded at their estimated fair values at the acquisition date. The estimated fair value of PP&amp;E consisted of $3.4
billion of proved properties and $1.3 billion of unproved properties. No goodwill was recorded on this transaction. The following
table summarizes the allocation of the purchase price to Vintage&#146;s assets and liabilities:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="88%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
      January 30, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      current assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>336</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Assets of
      discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,001</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,712</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      non-current assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      Assets Acquired</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,060</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      current liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>278</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      of discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      debt, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>585</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      income taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,606</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      long-term liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>155</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      Liabilities Assumed</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,654</b></font></p></td></tr>
  <tr>
    <td width="88%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net Assets
      Acquired</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,406</b></font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
Vintage assets and their related liabilities were classified as held for sale as part of the allocation of the purchase price as
Occidental intended at the time of acquisition to divest these assets. The results of operations for the assets that were held for
sale and sold are not included in the revenue, cost or production amounts and were treated as discontinued operations as Occidental
did not expect to generate any significant cash flows from, or have any continuing involvement with, the activities of these Vintage
assets. During 2006, Occidental divested these assets for approximately $1.0 billion and recorded no gain or loss on these sales. On
the December 31, 2006, consolidated balance sheet, the assets of discontinued operations amount includes approximately $22 million
of the remaining amount of PP&amp;E that is being held for sale and the liabilities of discontinued operations includes $4 million
of liabilities held for sale. Net revenues and pre-tax income for discontinued operations related to these Vintage assets for the
year ended December 31, 2006, were $869 million and $237 million, respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following unaudited pro forma summary presents the consolidated results of operations as if the acquisition of Vintage had occurred
at the beginning of each year:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="78%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions) (unaudited)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pro Forma
      Results of Operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='margin-left:9pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,227</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16,300</font></p></td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='margin-left:9pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,148</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,374</font></p></td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='margin-left:9pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.86</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.23</font></p></td></tr>
  <tr>
    <td width="78%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.82</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.15</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
unaudited pro forma data presented above use estimates and assumptions based on information currently available, and are not
necessarily indicative of the results of operations of Occidental that would have occurred had such acquisition actually been
consummated as of the beginning of the years presented, nor are they necessarily indicative of future results of
operations.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>48</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Ecuador terminated Occidental's contract for the operation of Block 15, which comprised all of its oil producing operations in
the country, and seized Occidental's Block 15 assets. The process resulting in this action began shortly after Occidental prevailed,
by unanimous decision of an international arbitration panel subsequently upheld by a London court, in a legal dispute over tax
refunds that Ecuador wrongfully withheld. Occidental immediately filed an arbitration claim against Ecuador, seeking redress for
illegal confiscation of the Block 15 operations with the International Centre for Settlement of Investment Disputes in Washington,
D.C., invoking the protections of the U.S. - Ecuador Bilateral Investment Treaty. As a result of the seizure, Occidental classified
its Block 15 operations as discontinued operations. In 2006, Occidental recorded a net after-tax charge of $296 million in
discontinued operations. This amount consists of after-tax charges for the write-off of the investment in Block 15 in Ecuador, as
well as ship-or-pay obligations entered into with respect to the Oleoducto de Crudos Pesados Ltd. (OCP) pipeline in Ecuador to ship
oil produced in Block 15, partially offset by $109 million after-tax income from operations for the first five months of
2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
Block 15 assets and liabilities are classified as assets and liabilities of discontinued operations on the consolidated balance
sheet at December 31, 2005, on a retrospective application basis. At December 31, 2005, Block 15 assets of discontinued operations
were $426 million, which mainly consisted of PP&amp;E. At December 31, 2006, liabilities of discontinued operations related to
Ecuador were $321 million, which mainly consisted of the ship or pay obligations to the OCP pipeline. At December 31, 2005,
liabilities of discontinued operations related to Ecuador were $136 million, which mainly consisted of accrued liabilities. Net
revenues and pre-tax income (loss) for discontinued operations related to Ecuador for the year ended December 31, 2006, 2005 and
2004 were $275 million and $(529) million, including a pre-tax write-off of $(673) million, $611 million and $325 million, and $489
million and $269 million, respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>2005</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental made several oil and gas producing property acquisitions in the Permian Basin for approximately $1.7 billion in cash.
This was partially offset by cash proceeds totaling $171 million from dispositions of a portion of the acquired properties. No gain
or loss was recorded for these dispositions.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
suspended all activities in Libya in 1986 as a result of economic sanctions imposed by the United States government. During the
imposition of sanctions, Occidental derived no economic benefit from its Libyan interests. In 2004, the United States government
lifted all of the principal economic sanctions against Libya. In 2006, the United States effectively eliminated the last of the
economic sanctions.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
the Libyan authorities approved the terms of Occidental&#146;s participation in the assets that it left in 1986. This re-entry
agreement allowed Occidental to return to its Libyan operations on generally the same terms in effect when activities were
suspended. Those assets consist of three producing contracts in the Sirte Basin and four exploration blocks. Occidental paid
approximately $133 million in re-entry bonuses and capital adjustment and work-in-progress payments and is required to pay $10
million per year while it continues to operate in Libya, as reimbursements for past development costs associated with these assets.
In addition, Occidental has committed to spend $90 million over the next five years in the four exploration blocks. Currently,
Occidental&#146;s rights in the producing fields extend through 2009 and early 2010.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Separately,
in early 2005, Occidental participated in the EPSA IV exploration bid round in Libya. Occidental successfully bid on nine of the 15
areas available. Occidental is the operator of five onshore areas and has a 90-percent exploration working interest in each area. In
addition, Occidental holds a 35-percent exploration working interest in four offshore areas. Woodside Petroleum Ltd. is the operator
for the offshore areas. Occidental paid approximately $90 million in exploration lease bonuses for these nine new areas and
committed to perform a minimum exploration work program valued at $125 million over the commitment period.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In July
2005, Occidental signed a new production-sharing contract (PSC) for the Mukhaizna oil field with the Government of the Sultanate of
Oman. Under the terms of the new PSC, Occidental took over field operations on September 1, 2005, for a cost of $137 million.
Occidental holds a 45-percent working interest.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In June
2005, Occidental completed the purchase of three basic chemical manufacturing facilities from Vulcan for $214 million in cash, plus
contingent payments based upon the future performance of these facilities and the assumption of certain liabilities. In order to
facilitate receipt of regulatory approval for this acquisition, Occidental divested one of the facilities.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>49</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>2004</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2004, Occidental acquired a 1,300-mile oil pipeline and gathering system located in the Permian Basin for approximately $143
million in cash.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
strategic and economic reasons, Occidental exited the vinyl specialty resins business by closing the Pottstown, Pennsylvania
manufacturing facility (Specialty Resins) effective January 5, 2005, and recorded an after-tax charge of $32 million as of December
31, 2004. Occidental's assets and liabilities related to Specialty Resins are classified as held for sale and as discontinued
operations in the income statements for all periods presented. Specialty Resins' net sales included in discontinued operations were
$1 million, $27 million and $98 million for 2006, 2005 and 2004, respectively, and net gains (losses) from discontinued operations
were $2 million, $6 million and $(38) million, respectively.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
3&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING CHANGES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>FUTURE
ACCOUNTING CHANGES
  <br>FIN 48</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In June
2006, the FASB issued FIN 48, &#147;Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109.&#148;
This interpretation specifies that benefits from tax positions should be recognized in the financial statements only when it is
more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority having full
knowledge of all relevant information. A tax position meeting the more-likely-than-not recognition threshold should be measured at
the largest amount of benefit for which the likelihood of realization upon ultimate settlement exceeds 50 percent. It also requires
additional disclosures related to these tax positions. FIN 48 is effective for fiscal years beginning after December 15, 2006.
Occidental will adopt FIN 48 in the first quarter of 2007 and expects there will not be a material effect on the financial
statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 157</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued SFAS No. 157, &#147;Fair Value Measurements.&#148;  This statement establishes a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 is effective for financial statements
issued for fiscal years beginning after November 15, 2007. Occidental is currently assessing the effect of SFAS No. 157 on its
financial statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>FSP
AUG AIR-1</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued FASB Staff Position (FSP) AUG AIR-1, &#147;Accounting for Planned Major Maintenance
Activities.&#148; This FSP prohibits the use of the accrue-in-advance method of accounting for planned major maintenance activities
in annual and interim financial reporting periods. FSP AUG AIR-1 is effective for the first fiscal year beginning after December 15,
2006. Occidental will adopt FSP AUG AIR-1 in the first quarter of 2007 and expects there will not be a material effect on the
financial statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 06-4</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the Emerging Issues Task Force (EITF) finalized the provisions of EITF Issue No. 06-4, &#147;Accounting for Deferred
Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements.&#148;  This EITF Issue
provides accounting guidance for endorsement split-dollar life insurance arrangements and require employers to recognize liability
for future benefits in accordance with SFAS 106 or APB Opinion No. 12. The recognition and disclosure provisions of EITF Issue No.
06-4 are effective for fiscal years ending after December 15, 2007. Occidental is currently assessing the effect of this EITF Issue
on its financial statements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 06-5</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the EITF finalized the provisions of EITF Issue No. 06-5, "Accounting for Purchase of Life Insurance-Determining the
Amount That Could Be Realized in Accordance with FASB Technical bulletin No. 85-4.&#148; This EITF Issue provides accounting
guidance for life insurance policies and requires employers to consider and account for any additional amounts or restrictions under
the terms of such policies. The recognition and disclosure provisions of EITF Issue No. 06-5 are effective for fiscal years
beginning after December 15, 2006. Occidental will adopt this EITF Issue in the first quarter of 2007 and expects there will not be
a material effect on the financial statements upon adoption.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>50</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>RECENTLY
ADOPTED ACCOUNTING CHANGES
  <br>SFAS No. 158</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the FASB issued SFAS No. 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement
Plans&#151;an amendment of FASB Statements No. 87, 88, 106, and 132(R).&#148; This statement requires an employer to recognize the
overfunded or underfunded amounts of its defined benefit pension and postretirement plans as an asset or liability and recognize
changes in the funded status of these plans in the year in which the changes occur through OCI, if they are not recognized in the
income statement. The statement also requires a company to use the date of its fiscal year-end to measure the plans. The recognition
and disclosure provisions of SFAS No. 158 are effective for fiscal years ending after December 15, 2006. The requirement to use the
fiscal year-end as the measurement date is effective for fiscal years ending after December 15, 2008. Occidental adopted this
statement on December 31, 2006. See Note 13 for further information.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SAB
108</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) 108, &#147;Financial Statements &#150;
Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements.&#148;  SAB
108 requires quantification of the impact of all prior year misstatements from both an income statement and a balance sheet
perspective to determine if the misstatements are material. SAB 108 is effective for financial statements issued for fiscal years
ending after November 15, 2006. Occidental adopted SAB 108 effective December 31, 2006 and there was no material effect on the
financial statements upon adoption.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>SFAS
No. 123(R)</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>On July
1, 2005, Occidental early adopted the fair value recognition provisions of SFAS No. 123(R), "Share-Based Payments", under the
modified prospective transition method. Since most of Occidental&#146;s existing stock-based compensation was already being recorded
in the income statement, Occidental decided to early adopt SFAS 123(R) so that the remaining awards would be accounted for in a
similar manner. Prior to July 1, 2005, Occidental applied the APB Opinion No. 25 intrinsic value accounting method for its stock
incentive plans. Under the modified prospective transition method, the fair value recognition provisions apply only to new awards or
awards modified after July 1, 2005. Additionally, the fair value of existing unvested awards at the date of adoption is recorded in
compensation expense over the remaining requisite service period. Results from prior periods have not been restated. As a result of
adopting this statement in the third quarter of 2005, Occidental recorded a $3 million after-tax credit as a cumulative effect of a
change in accounting principles. See Note 12 for more information.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>EITF
Issue No. 04-13</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2005, the EITF finalized the provisions of EITF Issue No. 04-13, "Accounting for Purchases and Sales of Inventory with the
Same Counterparty", which provides accounting guidance about whether buy/sell arrangements should be accounted for at historical
cost and whether these arrangements should be reported on a gross or net basis. Buy/sell arrangements typically are contractual
arrangements where the buy and sell agreements are entered into in contemplation of one another with the same counterparty.
Occidental reports all buy/sell arrangements on a net basis and at historical cost. This EITF Issue was effective in the first
interim period beginning after March 15, 2006. Occidental prospectively adopted this EITF Issue in the second quarter of 2006 and
there was no material effect on the financial statements upon adoption.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
4&nbsp;&nbsp;&nbsp;&nbsp;INVENTORIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Inventories
of approximately $204 million and $157 million were valued under the LIFO method at December 31, 2006 and 2005, respectively.
Inventories consisted of the following:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
      December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Raw
      materials</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>70</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>81</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Materials
      and supplies</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>304</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>177</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Finished
      goods</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>525</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>558</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>899</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>816</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>LIFO
      reserve</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(74</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(100</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>825</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>716</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>51</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
5&nbsp;&nbsp;&nbsp;&nbsp;LONG-TERM DEBT</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Long-term
debt consisted of the following:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
      December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Occidental
      Petroleum Corporation</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.75%
      senior notes due 2012</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>368</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>371</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.45%
      senior notes due 2029</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>328</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>350</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.25%
      senior debentures due 2019 </font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>265</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>300</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.25%
      medium-term senior notes due 2010</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>227</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>253</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10.125%
      senior debentures due 2009 </font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>222</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>222</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.2%
      senior debentures due 2028</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>200</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>200</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4%
      medium-term senior notes due 2007 </font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>146</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>156</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.75%
      medium-term notes due 2023</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>76</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>100</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11.125%
      senior notes due 2010</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.1%
      medium-term notes due 2008</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.375%
      senior notes due 2008 <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>408</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,854</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,382</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Subsidiary
      Debt</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dolphin
      Energy Ltd. loans due 2009 <sup>(b)</sup> (5.76% as of December 31, 2006 and 4.47% as of December 31, 2005)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>473</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>299</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.25%
      Vintage senior notes due 2012</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>276</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.6%
      to 7.5% unsecured notes due 2007 through 2018</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>171</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>242</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,774</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,923</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Less:</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unamortized
      premium (discount), net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>16</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      maturities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(171</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(46</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="79%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,619</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,873</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The
      December 31, 2005 amount includes unamortized interest rate swap settlement net gains of $13 million.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>The
      Dolphin Energy Ltd. loans include Occidental&#146;s portion of the bridge loan and Islamic-law-compliant
      facility.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
September 2006, Occidental amended and restated its $1.5 billion bank credit (Credit Facility) to, among other things, lower the
interest rate and extend the term to September 2011. The Credit Facility provides for the termination of the loan commitments and
requires immediate repayment of any outstanding amounts if certain events of default occur or if Occidental files for bankruptcy.
Occidental had not drawn down any amounts on the Credit Facility at December 31, 2006. None of Occidental's committed bank credits
contain material adverse change (MAC) clauses or debt rating triggers that could restrict Occidental's ability to borrow under these
lines. Occidental's credit facilities and debt agreements do not contain rating triggers that could terminate bank commitments or
accelerate debt in the event of a ratings downgrade. Up to $350 million of the Credit Facility is available in the form of letters
of credit. Borrowings under the Credit Facility bear interest at various benchmark rates, including LIBOR, plus a margin based on
Occidental's senior debt ratings. Additionally, Occidental pays an annual facility fee (ranging from 0.06 percent to 0.08 percent in
2006) on the total commitment amount, which is based on Occidental's senior debt ratings.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
Occidental recorded $35 million of pre-tax charges to redeem all of its outstanding 7.375-percent senior notes due 2008 and all of
its 7.875-percent Vintage senior subordinated notes due 2011 and to purchase in the open market and retire various amounts of
Occidental and Vintage senior notes and unsecured subsidiary notes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental recorded $42 million of pre-tax interest charges to redeem all of its outstanding 5.875-percent senior notes,
4.101-percent medium-term senior notes and 7.65-percent senior notes and to purchase in the open market and retire various amounts
of Occidental senior notes and unsecured subsidiary notes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, minimum principal payments on long-term debt subsequent to December 31, 2006, aggregated $2,774 million, of which
$171 million is due in 2007, $10 million in 2008, $695 million in 2009, $239 million in 2010, $68 million in 2011, $644 million in
2012 and $947 million thereafter. These amounts do not include the net unamortized premium of $16 million. The unamortized premium
is generally being amortized to interest expense on the effective interest method over the lives of the related
issuances.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, under the most restrictive covenants of certain financing agreements, Occidental's capacity for additional
unsecured borrowing was approximately $44.8 billion and the capacity for the payment of cash dividends and other distributions on,
and for acquisitions of, Occidental&#146;s capital stock was approximately $17.2 billion, assuming that such dividends,
distributions and acquisitions were made without incurring additional borrowings.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
estimates the fair value of its long-term debt based on the quoted market prices for the same or similar issues or on the yields
offered to Occidental for debt of similar rating and similar remaining maturities. The estimated fair values of Occidental&#146;s
debt, at December 31, 2006 and 2005, were approximately $3.1 billion and $3.4 billion, respectively, compared with carrying values
of approximately $2.8 billion and $2.9 billion, respectively.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>52</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
6&nbsp;&nbsp;&nbsp;&nbsp;LEASE COMMITMENTS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
present value of minimum capital lease payments, net of the current portion, totaled $25 million at both December 31, 2006 and 2005.
These amounts are included in other liabilities.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Operating
and capital lease agreements, which include leases for manufacturing facilities, office space, railcars and tanks, frequently
include renewal and/or purchase options and require Occidental to pay for utilities, taxes, insurance and maintenance
expense.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, future net minimum lease payments for capital and operating leases (excluding oil and gas and other mineral
leases, utilities, taxes, insurance and maintenance expense) were the following:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="77%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Capital</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operating&nbsp;<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>167</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2008</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>136</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>117</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2010</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>94</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>77</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Thereafter</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>767</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      minimum lease payments</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>38</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,358</font></p></td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Less:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr>
  <tr>
    <td width="77%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Imputed
      interest</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr>
  <tr>
    <td width="77%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Present
      value of minimum capital lease payments, net of current portion</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>25</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>At
      December 31, 2006, sublease rental amounts included in the future operating lease payments totaled $60 million, as follows (in
      millions): 2007&#151;$8, 2008&#151;$8, 2009&#151;$10, 2010&#151;$8, 2011&#151;$8 and
      thereafter&#151;$18.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Rental
expense for operating leases, net of sublease rental income, was $199 million in 2006, $141 million in 2005 and $120 million in
2004. Rental expense was net of sublease income of $7 million in both 2006 and 2005 and $8 million in 2004.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
7&nbsp;&nbsp;&nbsp;&nbsp;DERIVATIVE ACTIVITIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
market risk exposures relate mainly to commodity prices and, to a lesser extent, interest rates and foreign currency exchange rates.
Occidental has entered into derivative instrument transactions to reduce these price and rate fluctuations. A derivative is an
instrument that, among other characteristics, derives its value from changes in another instrument or variable.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
general, the fair value recorded for derivative instruments is based on quoted market prices, dealer quotes and the Black Scholes or
similar valuation models.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>COMMODITY
PRICE RISK</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
results are sensitive to fluctuations in crude oil and natural gas prices.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Marketing
and Trading Operations</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
periodically uses different types of derivative instruments to achieve the best prices for oil and gas. Derivatives have been used
by Occidental to reduce its exposure to price volatility and mitigate fluctuations in commodity-related cash flows. Occidental
enters into low-risk marketing and trading activities through its separate marketing organization, which operates under established
policy controls and procedures. With respect to derivatives used in its oil and gas marketing operations, Occidental utilizes a
combination of futures, forwards, options and swaps to offset various physical transactions. Occidental's use of derivatives in
marketing and trading activities primarily relates to managing cash flows from third-party purchases, which includes
Occidental&#146;s periodic gas storage activities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Production
Hedges</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental entered into a series of fixed price swaps and costless collar agreements that qualify as cash-flow hedges for the sale
of a portion of its crude oil production. Additionally, Occidental acquired oil and gas fixed price and basis swaps with the Vintage
acquisition. These hedges continue to the end of 2011. The 2006 volume that was hedged was less than four percent of
Occidental&#146;s 2006 crude oil and natural gas production.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>53</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Fair
Value of Marketing and Trading Derivative Contracts</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following tables reconcile the changes in the net fair value of Occidental&#146;s marketing and trading contracts, a portion of
which are hedges, during 2006 and 2005 and segregate the open contracts at December 31, 2006 by maturity periods.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="78%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style=' border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style=' border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Fair
      value of contracts outstanding at beginning of year &#150; unrealized (losses) gains</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(457</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>30</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Losses on
      changes for contracts realized or otherwise settled during the year</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>106</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="78%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Changes
      in fair value attributable to changes in valuation techniques and assumptions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="78%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Losses or
      other changes in fair values</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(543</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="78%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Fair
      value of contracts outstanding at end of year &#150; unrealized losses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(355</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(457</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Primarily
      relates to production hedges.</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="43%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="11" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Maturity
      Periods</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Source of
      Fair Value &#150; unrealized (losses) gains</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2007</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2008
        <br>to 2009</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2010
        <br>to 2011</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2012 and
        <br>thereafter</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
        <br>Fair Value</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Prices
      actively quoted</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(43</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(33</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="43%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Prices
      provided by other external sources</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>62</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>18</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>82</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Prices based
      on models and other valuation methods <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(63</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(187</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(154</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(404</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="43%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(44</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(163</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(149</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(355</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The
      underlying prices utilized for the 2007 through 2011 fair value calculations of the options are based on monthly NYMEX
      published prices. The underlying prices for years 2012 and thereafter are based on the year-end NYMEX published prices, as
      published monthly prices are not available. These prices are entered into an industry standard options pricing model to
      determine fair value.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>INTEREST
RATE RISK</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>General</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
exposure to changes in interest rates relates primarily to its long-term debt obligations.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental 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 recorded into income when the debt was paid in 2005 and 2006. The amount of
interest expense recorded in the income statement was lower, as a result of the swaps and recognition of the gain, by approximately
$13 million, $21 million and $56 million for the years ended December 31, 2006, 2005 and 2004, respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
was a party to a series of forward interest-rate locks, which qualified as cash-flow hedges. The hedges were related to the
construction of a cogeneration plant leased by Occidental that was completed in December 2002. The unamortized loss on the hedges at
December 31, 2006 was approximately $18 million after-tax, which is recorded in AOCI and is being recognized in earnings over the
lease term of 26 years on a straight-line basis.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>CREDIT
RISK</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
energy contracts are spread among several counterparties. Creditworthiness is reviewed before doing business with a new counterparty
and on an ongoing basis. Occidental monitors aggregated counterparty exposure relative to credit limits. Credit exposure for each
customer is monitored for outstanding balances, current month activity, and forward mark-to-market exposure. Losses associated with
credit risk have been immaterial for all years presented.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>FOREIGN
CURRENCY RISK</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A few of
Occidental&#146;s foreign operations have currency risk. Occidental manages its exposure primarily by balancing monetary assets and
liabilities and maintaining cash positions only at levels necessary for operating purposes. Most international crude oil sales are
denominated in U.S. dollars. Additionally, all of Occidental&#146;s consolidated foreign oil and gas subsidiaries have the U.S.
dollar as the functional currency. At December 31, 2006 and 2005, Occidental had not entered into any foreign currency derivative
instruments. The effect of exchange-rate transactions in foreign currencies is included in periodic income and is
immaterial.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>54</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>DERIVATIVE
AND FAIR VALUE DISCLOSURES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table shows derivative financial instruments included in the consolidated balance sheets:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="72%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
      December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Derivative
      financial instrument assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Receivables
      from joint ventures, partnerships and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>248</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>286</font></p></td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      receivables, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>61</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>178</font></p></td></tr>
  <tr>
    <td width="72%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>309</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>464</font></p></td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Derivative
      financial instrument liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accrued
      liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>291</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>387</font></p></td></tr>
  <tr>
    <td width="72%" valign=bottom>
      <p style='margin-left:15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      credits and other liabilities &#150; other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>384</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>564</font></p></td></tr>
  <tr>
    <td width="72%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>675</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>951</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table summarizes net after-tax derivative activity recorded in AOCI:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="71%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
      December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="71%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Beginning
      Balance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(347</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(17</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="71%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gains
      (losses) from changes in cash flow hedges</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(289</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="71%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Amount
      reclassified to income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="11%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(41</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="71%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Ending
      Balance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(259</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="11%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(347</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>During
the next twelve months, Occidental expects that approximately $11 million of net derivative after-tax losses included in AOCI, based
on their valuation at December 31, 2006, will be reclassified into earnings. Hedge ineffectiveness did not have a material impact on
earnings for the years ended December 31, 2006, 2005 and 2004.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
8&nbsp;&nbsp;&nbsp;&nbsp;ENVIRONMENTAL LIABILITIES AND EXPENDITURES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
operations are subject to stringent federal, state, local and foreign laws and regulations relating to improving or maintaining
environmental quality. Costs associated with environmental compliance have increased over time and are expected to rise in the
future. Environmental expenditures related to current operations are factored into the overall business planning process and are
considered an integral part of production in manufacturing quality products responsive to market demand.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>ENVIRONMENTAL
REMEDIATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The laws
that require or address environmental remediation may apply retroactively to past waste disposal practices and releases of
substances to the environment. In many cases, the laws apply regardless of fault, legality of the original activities or current
ownership or control of sites. OPC or certain of its subsidiaries are currently participating in environmental assessments and
cleanups under these laws at federal Superfund sites, comparable state sites and other domestic and foreign remediation sites,
including currently owned facilities and previously owned sites. Also, OPC or certain of its subsidiaries have been involved in a
substantial number of governmental and private proceedings involving historical practices at various sites including, in some
instances, having been named in proceedings under CERCLA and similar federal, state and local environmental laws. These proceedings
seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages and civil
penalties.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
manages its environmental remediation efforts through a wholly owned subsidiary, Glenn Springs Holdings, Inc., which reports its
results directly to Occidental&#146;s corporate management. The following table presents Occidental's environmental remediation
reserves, the current portion of which is included in accrued liabilities ($79  million in 2006, $83 million in 2005 and $76 million
in 2004) and the remainder in deferred credits and other liabilities &#151; other ($333 million in 2006, $335 million in 2005 and
$299 million in 2004). The reserves are grouped by three categories of environmental remediation sites:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="31%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$ amounts in
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="4" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="31%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Number
      of Sites</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Reserve
      Balance</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Number
      of Sites</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reserve
      Balance</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Number
      of Sites</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reserve
      Balance</font></p></td></tr>
  <tr>
    <td width="31%" valign=bottom>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>CERCLA
      &amp; equivalent sites</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>105</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>226</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>128</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>236</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>125</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>239</font></p></td></tr>
  <tr>
    <td width="31%" valign=bottom>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Active
      facilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>116</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>18</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>114</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>75</font></p></td></tr>
  <tr>
    <td width="31%" valign=bottom>
      <p style='margin-left:5pt;text-indent:-5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Closed
      or sold facilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>40</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>70</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>39</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>68</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>39</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>61</font></p></td></tr>
  <tr>
    <td width="31%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>166</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>412</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>185</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>418</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>180</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>375</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>55</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table shows environmental reserve activity for the past three years:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="58%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance -
      Beginning of Year</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>418</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>375</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>372</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Remediation
      expense and interest accretion</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>48</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>63</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>60</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Changes
      from acquisitions/dispositions</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17</b></font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>45</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Payments</font></p></td>
    <td width="4%"></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(71</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>(71</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="3%"></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>(63</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="58%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="4%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="4%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%"></td></tr>
  <tr>
    <td width="58%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance -
      End of Year</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>412</b></font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>418</font></p></td>
    <td width="4%"></td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>375</font></p></td>
    <td width="2%"></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
expects to expend funds equivalent to about half of the current environmental reserve over the next three years and the balance over
the next ten or more years. Occidental believes it is reasonably possible that it will continue to incur additional liabilities
beyond those recorded for environmental remediation at these sites. The range of reasonably possible loss for existing environmental
remediation matters could be up to $430 million beyond the amount accrued. For management&#146;s opinion, refer to Note
9.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>CERCLA
and Equivalent Sites</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As of
December&nbsp;31,&nbsp;2006, OPC or certain of its subsidiaries have been named in 105 CERCLA or state equivalent proceedings, as
shown below.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="74%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Description
      ($ amounts in millions)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Number
      of Sites</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Reserve
      Balance</b></font></p></td></tr>
  <tr>
    <td width="74%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minimal/No
      exposure <sup>(a)</sup></font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>85</b></font></p></td>
    <td width="3%"></td>
    <td width="5%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6</b></font></p></td></tr>
  <tr>
    <td width="74%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reserves
      between $1-10 MM</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14</b></font></p></td>
    <td width="3%"></td>
    <td width="5%"></td>
    <td width="5%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>55</b></font></p></td></tr>
  <tr>
    <td width="74%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reserves
      over $10 MM</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6</b></font></p></td>
    <td width="3%"></td>
    <td width="5%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>165</b></font></p></td></tr>
  <tr>
    <td width="74%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="3%"></td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>105</b></font></p></td>
    <td width="3%"></td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>226</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="2%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="98%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>Includes
      32 sites for which Maxus Energy Corporation has retained the liability and indemnified Occidental, 5 sites where Occidental
      has denied liability without challenge, 15 sites where Occidental&#146;s reserves are less than $50,000 each, and 33 sites
      where reserves are between $50,000 and $1 million each.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The six
sites with individual reserves over $10 million in 2006 include a former copper mining and smelting operation in Tennessee, two
closed landfills in western New York and groundwater treatment facilities at three closed chemical plants (Montague, Michigan,
western New York and Tacoma, Washington).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Active
Facilities</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
subsidiaries of OPC are currently addressing releases of substances from past operations at 21 active facilities. Five facilities
&#151; a chemical plant in Louisiana, a phosphorous recovery operation in Tennessee, a chemical plant in Texas, a chemical plant in
Kansas and certain oil and gas properties in the southwestern United States &#151; account for 69 percent of the reserves associated
with these facilities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Closed
or Sold Facilities</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>There are
40 sites formerly owned or operated by certain subsidiaries of OPC that have ongoing environmental remediation requirements in which
OPC or its subsidiaries are involved. Five sites account for 70 percent of the reserves associated with this group. The five sites
are: an active refinery in Louisiana where Occidental indemnifies the current owner and operator for certain remedial actions, a
water treatment facility at a former coal mine in Pennsylvania, a closed Occidental Chemical Corporation (OCC) chemical plant in
Pennsylvania, a closed landfill in western New York and a water-treatment facility at a former OCC chemical plant in North
Carolina.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>ENVIRONMENTAL
COSTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
costs, some of which may include estimates, relating to compliance with environmental laws and regulations are shown below for each
segment:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="73%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Operating
      Expenses</b></font></p></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and Gas</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>95</b></font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>65</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51</font></p></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>73</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>67</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td></tr>
  <tr>
    <td width="73%"></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>168</b></font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>132</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>110</font></p></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Capital
      Expenditures</b></font></p></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and Gas</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>55</b></font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44</font></p></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25</b></font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21</font></p></td>
    <td width="2%"></td>
    <td colspan=2 valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td></tr>
  <tr>
    <td width="73%"></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>80</b></font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>64</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td></tr>
  <tr>
    <td width="73%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Remediation
      Expenses</b></font></p></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td>
    <td width="2%"></td>
    <td width="1%"></td>
    <td width="6%"></td></tr>
  <tr>
    <td width="73%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Corporate</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47</b></font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>62</font></p></td>
    <td width="2%"></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>56</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Operating
expenses are incurred on a continual basis. Capital expenditures relate to longer-lived improvements in currently operating
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 are expected to increase.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
9&nbsp;&nbsp;&nbsp;&nbsp;LAWSUITS, CLAIMS, COMMITMENTS, CONTINGENCIES AND RELATED MATTERS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>OPC or
certain of its subsidiaries have been named in many lawsuits, claims and other legal proceedings. These actions seek, among other
things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other
losses, or injunctive or declaratory relief. OPC or certain of its subsidiaries also have been named in proceedings under CERCLA and
similar federal, state, local and foreign environmental 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 response costs with other
financially sound companies. With respect to all such lawsuits, claims and proceedings, including environmental proceedings,
Occidental accrues reserves when it is probable a liability has been incurred and the amount of loss can be reasonably
estimated.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since
2004, OCC has been served with ten lawsuits filed in Nicaragua by approximately 2,600 individual plaintiffs. These individuals
allege that they have sustained several billion dollars of personal injury damages as a result of their alleged exposure to a
pesticide. OCC is aware of, but has not been served in, 24 additional cases in Nicaragua, which Occidental understands make similar
allegations. In the opinion of management, the claims against OCC are without merit because, among other things, OCC believes that
none of the pesticide it manufactured was ever sold or used in Nicaragua. Under the applicable Nicaraguan statute, defendants are
required to pay pre-trial deposits so large as to effectively prohibit defendants from participating fully in their defense. OCC
filed a response to the complaints contesting jurisdiction without posting such pre-trial deposit. In 2004, the judge in one of the
cases (Osorio Case), ruled the court had jurisdiction over the defendants, including OCC, and that the plaintiffs had waived the
requirement of the pre-trial deposit. In order to preserve its jurisdictional defense, OCC elected not to make a substantive
appearance in the Osorio Case. In 2005, the judge in the Osorio Case entered judgment against several defendants, including OCC, for
damages totaling approximately $97 million. In December 2006, the court in a second case in Nicaragua (Rios Case) entered a judgment
against several defendants, including OCC, for damages totaling approximately $800 million. While preserving its jurisdictional
defenses, OCC has appealed the judgments in the Osorio and Rios Cases. OCC has no assets in Nicaragua and, in the opinion of
management, any judgment rendered under the statute, including in the Osorio and Rios Cases, would be unenforceable in the United
States.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>During
the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local
and foreign tax jurisdictions. Taxable years prior to 2001 are generally closed for U.S. federal corporate income tax purposes.
Corporate tax returns for taxable years 2001 through 2003 are in various stages of audit by the U.S. Internal Revenue Service.
Disputes may arise during the course of such audits as to facts and matters of law.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, commitments for major capital expenditures during 2007 and thereafter were approximately $787 million.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling services, electrical
power, steam and certain chemical raw materials. At December 31, 2006, the net present value of the fixed and determinable portion
of the obligations under these agreements, which were used to collateralize financings of the respective suppliers, aggregated $16
million, which was payable as follows (in millions): 2007&#151;$12 and 2008&#151;$4. Fixed payments under these agreements were $18
million in 2006, $17 million in 2005 and $19 million in 2004.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has certain other commitments under contracts, guarantees and joint ventures, including purchase commitments for goods and services
at market-related prices and certain other contingent liabilities. Some of these commitments, although not fixed or determinable,
involve capital expenditures and are part of the $3.3 to $3.4 billion in capital expenditures estimated for 2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 affiliates will
meet their various obligations (guarantees).</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, the notional amount of the guarantees that are subject to the reporting requirements of FIN 45 was approximately
$270 million, which consists of Occidental&#146;s guarantee of equity investees&#146; debt, primarily from the Dolphin Project
equity investment, and other commitments.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has indemnified various parties against specified liabilities that those parties might incur in the future in connection with
purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the
other party incurring liabilities that reach specified thresholds. As of December 31, 2006, Occidental is not aware of circumstances
it believes would reasonably be expected to lead to future indemnity claims against it in connection with these transactions that
would result in payments materially in excess of reserves.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>57</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>It is
impossible at this time to determine the ultimate liabilities that OPC and its subsidiaries may incur resulting from any lawsuits,
claims and proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities. If these matters
were to be ultimately resolved unfavorably at amounts substantially exceeding Occidental&#146;s reserves, an outcome not currently
anticipated, it is possible that such outcome could have a material adverse effect upon Occidental&#146;s consolidated financial
position or results of operations. However, after taking into account reserves, management does not expect the ultimate resolution
of any of these matters to have a material adverse effect upon Occidental&#146;s consolidated financial position or results of
operations.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
10&nbsp;&nbsp;&nbsp;&nbsp;DOMESTIC AND FOREIGN INCOME AND OTHER TAXES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
domestic and foreign components of income from continuing operations before domestic and foreign income and other taxes were as
follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Domestic</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,521</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,380</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,901</b></font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,547</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,420</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,967</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,412</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,633</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,045</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
provisions (credits) for domestic and foreign income and other taxes from continuing operations consisted of the
following:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="59%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>U.S.
        <br>Federal</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>State
        <br>and Local</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>1,457</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>120</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>1,804</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>3,381</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>149</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(13</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(51</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>85</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>1,606</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>107</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>1,753</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>3,466</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>612</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>126</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,263</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,001</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(63</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(9</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(74</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="59%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>549</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>117</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,261</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,927</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>695</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>45</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>726</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,466</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>184</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(28</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>173</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="59%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>879</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>62</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>698</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,639</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As a
result 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 change. The 2005 federal income tax provision includes a $619
million tax benefit related to the resolution of foreign tax credit issues with the Internal Revenue Service (IRS) and a $335
million tax benefit due to the reversal of tax reserves no longer required. The 2005 income tax provision also includes a net $10
million charge related to a state tax issue. The 2004 federal income tax provision includes tax benefits of $47 million resulting
from the reversal of tax contingency reserves no longer required due to the settlement of issues with the Internal Revenue
Service.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following is a reconciliation, stated as a percentage of pre-tax income, of the United States statutory federal income tax rate to
Occidental&#146;s effective tax rate on income from continuing operations:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
  <tr>
    <td width="76%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="76%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
      States federal statutory tax rate</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>35</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>35</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>35</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td></tr>
  <tr>
    <td width="76%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operations
      outside the United States </font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="76%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>State taxes,
      net of federal benefit</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="76%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Reversal of
      tax reserves</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="76%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td></tr>
  <tr>
    <td width="76%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Tax rate provided by Occidental</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>41</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>58</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The tax
effects of temporary differences resulting in deferred income taxes at December 31, 2006 and 2005 were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Tax effects
      of temporary differences (in millions)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Deferred
        <br>Tax Assets</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Deferred
        <br>Tax Liabilities</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
        <br>Tax Assets</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
        <br>Tax Liabilities</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment differences</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>189</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,174</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,554</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investments
      including partnerships</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>217</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>221</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Environmental
      reserves</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>162</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>184</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      benefit accruals</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>233</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>139</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      compensation and benefits</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>208</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>202</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Asset
      retirement obligations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>82</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>66</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Derivatives</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>70</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>184</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign tax
      credit carryforward</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>133</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>132</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>State income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>106</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>93</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>All
      other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>364</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>108</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>241</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>97</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Subtotal</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,547</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,499</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,285</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,872</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Valuation
      allowance</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(183</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(175</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      deferred taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,364</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,499</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,110</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,872</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Included
in total deferred tax assets was a current portion aggregating $190 million and $200 million as of December 31, 2006 and 2005,
respectively, that was reported in prepaid expenses and other.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has, as of December 31, 2006, foreign tax credit carryforwards of $133 million which expire in varying amounts through 2016 and
various state net operating loss carryforwards which have varying carryforward periods through 2025. Occidental established a
valuation allowance against these foreign tax credit carryforwards and state net operating losses as the Company believes these
assets will not be utilized in the statutory carryforward periods. In addition, Occidental establishes a valuation allowance against
deferred tax assets resulting from deductible temporary differences when it believes future benefit is unlikely to be
realized.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A
deferred tax liability has not been recognized for temporary differences related to Occidental&#146;s investment in certain foreign
subsidiaries primarily as a result of unremitted earnings of consolidated subsidiaries aggregating approximately $5.4 billion at
December 31, 2006, as it is Occidental&#146;s intention, generally, to reinvest such earnings permanently. If the earnings of these
foreign subsidiaries were not indefinitely reinvested, an additional deferred tax liability of approximately $200 million would be
required, assuming utilization of available foreign tax credits.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
discontinued operations include an income tax benefit of $209 million in 2006, and a charge of $96 million in 2005 and $46 million
in 2004.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
cumulative effect of changes in accounting principles was reduced by an income tax charge of $2 million in 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Additional
paid-in capital was credited $140 million in 2006, $74 million in 2005 and $75 million in 2004 for a tax benefit from the exercise
of certain stock based compensation awards.</font></p>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
11&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS' EQUITY</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following is an analysis of common stock:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="85%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(shares in
      thousands)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Common
      Stock</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance,
      December 31, 2003</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>774,096</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Issued</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,627</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Options
      exercised and other, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17,732</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance,
      December 31, 2004</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>793,455</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Issued</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,510</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Options
      exercised and other, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9,465</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance,
      December 31, 2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>804,430</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Issued</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>57,257</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Options
      exercised and other, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8,992</font></p></td></tr>
  <tr>
    <td width="85%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Balance,
      December 31, 2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>870,679</b></font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Occidental amended its Restated Certificate of Incorporation to increase the number of authorized shares of common stock to
1.1 billion. The par value per share remained unchanged.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>59</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>TREASURY
STOCK</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2006,
the Board of Directors authorized a treasury stock purchase program under which Occidental was authorized to purchase up to 40
million shares of its common stock, increased to 55 million in February 2007. Additionally, Occidental purchased shares from the
trustee of its defined contribution savings plan. In 2006, Occidental purchased 30.6 million shares under the programs at an average
cost of $48.20 per share.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>NONREDEEMABLE
PREFERRED STOCK</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has authorized 50,000,000 shares of preferred stock with a par value of $1.00 per share. At December 31, 2006, 2005 and 2004,
Occidental had no outstanding shares of preferred stock.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>EARNINGS
PER SHARE</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Basic
earnings per share was computed by dividing net income by the weighted average number of common shares outstanding during each year,
including vested but unissued share and share units. The computation of diluted earnings per share further reflects the dilutive
effect of stock options and stock-settled SARs.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following are the share amounts used to compute the basic and diluted earnings per share for the years ended December 31:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="55%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>In millions</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Basic
      Earnings per Share</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Weighted
      average shares outstanding</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>860.9</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>799.9</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>785.3</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Weighted
      average treasury shares</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>(15.9</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Vested/unissued
      restricted units</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>4.3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>3.2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2.4</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow, arial" style='font-size:9pt'>Deferred
      shares and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>3.3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>3.5</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>3.5</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font face="arial narrow, arial" style='font-size:9pt'>Basic
      Shares Outstanding</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>852.6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>806.6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>791.2</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'><b>Diluted
      Earnings per Share</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="13%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Basic
      shares outstanding</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>852.6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>806.6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>791.2</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Dilutive
      effect of options and stock-settled SARs outstanding</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>5.9</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>9.8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>9.5</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow, arial" style='font-size:9pt'>Dilutive
      effect of unvested/unissued restricted units</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>1.9</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>1.8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>1.6</font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom style='border-bottom: double black 2.25pt'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Dilutive
      Shares</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" color="#00009D" style='font-size:9pt'><b>860.4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>818.2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="13%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>802.3</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ACCUMULATED
OTHER COMPREHENSIVE LOSS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Accumulated
other comprehensive loss consisted of the following after-tax (losses) gains:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="69%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Balance at
      December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Foreign
      currency translation adjustments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(24</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(29</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Derivative
      mark-to-market adjustments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(259</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(347</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Pension and
      post-retirement adjustments <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(168</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Minimum
      pension liability adjustments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>3</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Unrealized
      gains on securities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>118</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="12%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(333</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>$</font></p></td>
    <td width="12%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>(373</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow, arial" style='font-size:7pt'>See Note
      13 for further information.</font></p></td></tr></table>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
12&nbsp;&nbsp;&nbsp;&nbsp;STOCK-BASED INCENTIVE PLANS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has established several Plans that provide for stock-based awards in the form of Options, restricted stock, RSUs, stock bonuses,
SARs, PSAs, PRSUs and dividend equivalents. These awards were granted under the 1995 Incentive Stock Plan (1995 ISP), 2001 Incentive
Compensation Plan (2001 ICP) and the 2005 Long-Term Incentive Plan (2005 LTIP). No further awards will be granted under the 1995 ISP
and 2001 ICP; however, certain 1995 ISP and 2001 ICP award grants were outstanding at December 31, 2006. An aggregate of 34 million
shares of Occidental common stock are reserved for issuance under the 2005 LTIP and at December 31, 2006, approximately 14.5 million
shares of Occidental common stock were available for future awards. Occidental also has a 1996 Restricted Stock Plan for
Non-Employee Directors (1996 DRSP), under which non-employee directors received awards of restricted stock as additional
compensation for their services as members of the Board of Directors. No further awards will be granted under the 1996 DRSP. All
non-employee director awards are now granted under the 2005 LTIP. During 2006, non-employee directors were granted awards for 59,800
shares of restricted stock that fully vested on the grant date. No awards that have been granted to directors may be sold or
transferred during the director&#146;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.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>60</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:10pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Adoption
of SFAS No. 123(R)</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As
discussed in Note 3, on July 1, 2005, Occidental changed its method of accounting for stock-based compensation from the APB Opinion
No. 25 intrinsic value accounting method to the fair value recognition provisions of SFAS No. 123(R). Prior to July 1, 2005,
Occidental had already been expensing its SARs, RSUs and PSAs. On July 1, 2005, Occidental began expensing its Options and recording
compensation expense for all its other stock-based incentive awards using fair value amounts in accordance with SFAS No.
123(R).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
table below summarizes certain stock-based incentive amounts for the year (all amounts in millions):</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Year Ended
      December 31,</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Compensation
      expense</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>211</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>186</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Income tax
      benefit recognized in the income statement</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>77</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>68</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Intrinsic
      value of options and stock-settled SAR exercises</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>168</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>217</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Liabilities
      paid <sup>(a)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Fair value
      of RSUs and PSAs vested during the year <sup>(b)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>107</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>80</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      liabilities paid under the cash-settled SARs.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>As
      measured on the vesting date for RSUs and the stock-settled portion of the PSAs.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As of
December 31, 2006, there was $256 million of pre-tax unrecognized compensation expense related to all unvested stock-based incentive
award grants. This expense is expected to be recognized over a weighted average period of 2.1 years.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>STOCK
OPTIONS AND SARS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
employees are granted Options that are settled in physical stock and SARs that are settled either only in stock or only in cash.
Exercise prices of the Options and SARs are equal to the quoted market value of Occidental&#146;s stock on the grant date.
Generally, the Options and SARs vest ratably over three years with a maximum term of ten years. These Options and SARs may be
forfeited or accelerated under certain circumstances.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The fair
value of each Option or stock-settled SAR is measured on the grant date using the Black Scholes option valuation model and expensed
on a straight-line basis over the vesting period. The expected life is estimated based on the actual weighted average life of
historical exercise activity of the grantee population at the grant date. The volatility factors are based on the historical
volatilities of Occidental common stock over the expected lives as estimated on the grant date. The risk-free interest rate is the
implied yield available on zero coupon (US Treasury Strip) T-notes at the grant date with a remaining term equal to the expected
life. The dividend yield is the expected annual dividend yield over the expected life, expressed as a percentage of the stock price
on the grant date. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by
employees who receive stock-based incentive awards, and subsequent events may not be indicative of the reasonableness of the
original estimates of fair value made by Occidental.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The grant
date assumptions used in the Black Scholes valuation for Options and stock-settled SARs were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="56%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Year
      Granted</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2003</font></p></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Assumptions
      used:</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:15.3pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Risk-free
      interest rate</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.0%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.7%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.4%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.6%</font></p></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:15.3pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Dividend
      yield</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.4%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.5%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.2%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.4%</font></p></td></tr>
  <tr>
    <td width="56%" valign=bottom>
      <p style='margin-left:15.3pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Volatility
      factor</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>26%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21%</font></p></td></tr>
  <tr>
    <td width="56%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.3pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Expected
      life (years)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.5</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.5</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.6</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.4</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
grant date fair value of each stock-settled SAR granted in 2006 and 2005 was $14.77 and $10.76, respectively. The grant date fair
value of each Option granted in 2004 and 2003 was $4.02 and $1.60, respectively. The fair value of the cash-settled SARs is also
estimated using the Black Scholes model and is recalculated using updated assumptions each quarter until they are exercised. Changes
in the fair value between the date of grant and the date when the cash-settled SARs are exercised are recognized as compensation
expense.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>61</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following is a summary of Option and SAR transactions during 2006:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="20%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="19" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td></tr>
  <tr>
    <td width="20%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Stock-
        <br>Settled
        <br>SARs &amp;
        <br>Options
        <br>(000's)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Weighted
        <br>Average
        <br>Exercise
        <br>Price</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Weighted
        <br>Average
        <br>Remaining
        <br>Contractual
        <br>Term (yrs)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Aggregate
        <br>Intrinsic
        <br>Value
        <br>(000&#146;s)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Cash-
        <br>Settled
        <br>SARs
        <br>(000's)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Weighted
        <br>Average
        <br>Exercise
        <br>Price</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Weighted
        <br>Average
        <br>Remaining
        <br>Contractual
        <br>Term (yrs)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Aggregate
        <br>Intrinsic
        <br>Value
        <br>(000&#146;s)</b></font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Beginning
      balance,
        <br>January 1, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22,980</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19.43</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,327</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24.66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Granted</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,138</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50.45</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exercised</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(13,224</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14.15</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,068</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24.66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Forfeited or
      expired</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(42</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14.91</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(49</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24.66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Ending
      balance,
        <br>December 31, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12,852</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32.45</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.8</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>210,481</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,210</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24.66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.5</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>125,916</b></font></p></td></tr>
  <tr>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Exercisable
      at
        <br>December 31, 2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,537</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21.23</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6.6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>180,400</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,908</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24.66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.5</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>70,276</b></font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>RSUS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
employees are awarded the right to receive RSUs that vest ratably three and five years after the grant date and can be forfeited or
accelerated under 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 2006 and 2005 were $50.45 and $40.91, respectively.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A summary
of changes in Occidental&#146;s unvested RSUs during the year ended December 31, 2006, is presented below:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="53%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="6" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td></tr>
  <tr>
    <td width="53%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>RSUs
        <br>(000&#146;s)</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Weighted
      Average Grant
        <br>Date Fair Value</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unvested at
      January 1</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,781</b></font></p></td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32.94</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Granted</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>926</b></font></p></td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50.45</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Vested</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,602</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29.68</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Forfeitures</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(23</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>46.18</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unvested at
      December 31</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,082</b></font></p></td>
    <td width="7%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>39.79</b></font></p></td>
    <td width="6%" style='border-bottom:black 2.25pt double'>&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>PERFORMANCE-BASED
AWARDS</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>PRSUs</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
executives are awarded PRSUs with a performance measure based on Occidental&#146;s three-year cumulative return on equity with
payout amounts varying from zero to 200 percent of the target award. The PRSUs vest at the end of the three-year period following
the grant date if performance targets are certified as being met. Compensation expense is measured on the grant date using the
quoted market price of Occidental&#146;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 paid in cash at the end of the performance period for the number of shares certified for payout.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A summary
of Occidental&#146;s PRSUs issued during the year ended December 31, 2006, is presented below:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="53%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="6" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td></tr>
  <tr>
    <td width="53%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PRSUs
        <br>(000&#146;s)</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Weighted
      Average Grant
        <br>Date Fair Value</b></font></p></td></tr>
  <tr>
    <td width="53%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unvested at
      January 1</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Granted or
      issued</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>758</b></font></p></td>
    <td width="7%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50.45</b></font></p></td>
    <td width="6%">&nbsp;</td></tr>
  <tr>
    <td width="53%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unvested at
      December 31</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>758</b></font></p></td>
    <td width="7%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50.45</b></font></p></td>
    <td width="6%" style='border-bottom:black 1.0pt solid'>&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>PSAs</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Certain
executives are awarded PSAs that vest at the end of the four-year period following the grant date if performance targets are
certified as being met, with payouts that range from zero to 200 percent of the target award. Dividend equivalents for target shares
are paid during the performance period. In June 2005, the holders of substantially all of Occidental&#146;s unvested PSAs agreed to
modify the settlement provisions to provide that the first 100 percent payout will be settled only in stock and any payout in excess
of 100 percent will be settled only in cash. There was no incremental compensation expense recorded at the time of the
modification.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>62</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The fair
values of the stock settled portion of PSAs are measured on the grant date using a Monte Carlo simulation model that uses the
assumptions noted in the following table. The expected life is based on the vesting period (Term). The volatility factors are based
on the historical volatilities of Occidental stock over the Term. The risk-free interest rate is the implied yield available on zero
coupon (US Treasury Strip) T-notes at the time of grant with a remaining term equal to the Term. The dividend yield is the expected
annual dividend yield over the Term, expressed as a percentage of the stock price on the grant date. Estimates of fair value are not
intended to predict actual future events or the value ultimately realized by the employees who receive the awards, and subsequent
events may not be indicative of the reasonableness of the original estimates of fair value made by Occidental. The fair values of
the underlying Occidental stock as of the grant dates of the PSAs granted in 2006 and 2005 were $39.94 and $29.18,
respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
grant-date assumptions used in the Monte Carlo simulation model for stock-settled PSAs were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="52%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Year
      Granted</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2003</font></p></td></tr>
  <tr>
    <td width="52%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Assumptions
      used:</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td></tr>
  <tr>
    <td width="52%" valign=bottom>
      <p style='margin-left:15.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Risk-free
      interest rate</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.0%</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.3%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.0%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.1%</font></p></td></tr>
  <tr>
    <td width="52%" valign=bottom>
      <p style='margin-left:15.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dividend
      yield</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.7%</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.9%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.5%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.5%</font></p></td></tr>
  <tr>
    <td width="52%" valign=bottom>
      <p style='margin-left:15.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Volatility factor</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32%</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>29%</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>31%</font></p></td></tr>
  <tr>
    <td width="52%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Expected life (years)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The fair
value of the cash-settled portion of PSAs is also estimated using a Monte Carlo simulation model each quarter, through vesting,
using updated assumptions. Changes in fair value of the cash-settled portion of the PSAs are recorded as compensation
expense.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A summary
of Occidental&#146;s unvested PSAs as of December 31, 2006 and changes during the year ended December 31, 2006, is presented
below:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="55%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="6" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td></tr>
  <tr>
    <td width="55%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PSAs
        <br>(000&#146;s)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Grant
      Date Fair Value
        <br>of Occidental Stock</b></font></p></td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>Unvested
      at January 1 <sup>(a)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,838</b></font></p></td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17.51</b></font></p></td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Granted
      <sup>(a, b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>199</b></font></p></td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>39.94</b></font></p></td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Vested
      <sup>(c)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(620</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>13.27</b></font></p></td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Forfeitures</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(15</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>N/A</b></font></p></td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="55%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unvested
      at December 31 <sup>(a)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,402</b></font></p></td>
    <td width="7%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19.69</b></font></p></td>
    <td width="7%" style='border-bottom:black 2.25pt double'>&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Unvested
      awards and award grants are presented at the target payouts.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Actual
      payout may be up to 200 percent of this amount.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The
      weighted-average payout at vesting was 161 percent of the target.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>PRO-FORMA
INFORMATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
adopted SFAS No. 123(R) on July 1, 2005. The following table shows the pro forma net income and earnings per share that Occidental
would have recorded if compensation expense were determined using SFAS No. 123(R) for these periods (amounts in millions, except per
share amounts).</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="69%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net Income</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Add:
      Stock-based compensation included in net income, net of tax, under
        <br>APB Opinion No. 25 <sup>(a)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>104</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deduct:
      Stock-based compensation, net of tax, determined under
        <br>SFAS No. 123(R) fair value method <sup>(a)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(112</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(61</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pro forma
      net income</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,273</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,554</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Earnings per
      share:</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      &#151; as reported</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.55</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.24</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      &#151; pro forma</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.54</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.23</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      &#151; as reported</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.45</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.20</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted &#151;
      pro forma</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.44</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.18</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The 2005
      amounts include only the first six months of 2005 before SFAS 123(R) was adopted.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>63</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
13&nbsp;&nbsp;&nbsp;&nbsp;RETIREMENT PLANS AND POSTRETIREMENT BENEFITS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has various benefit plans for its salaried, domestic union and nonunion hourly, and certain foreign national employees.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Defined
Contribution Plans</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>All
domestic employees and certain foreign national employees are eligible to participate in one or more of the defined contribution
retirement or savings plans that provide for periodic contributions by Occidental based on plan-specific criteria, such as base pay,
age level and employee contributions. Certain salaried employees participate in a supplemental retirement plan that provides
restoration of benefits lost due to governmental limitations on qualified retirement benefits. The accrued liabilities for the
supplemental retirement plan were $70 million, $61 million and $60 million as of December 31, 2006, 2005 and 2004, respectively, and
Occidental expensed $74 million in 2006, $66 million in 2005 and $59 million in 2004 under the provisions of these defined
contribution and supplemental retirement plans.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Defined
Benefit Plans</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Participation
in the defined benefit plans is limited and approximately 1,400 domestic and 1,100 foreign national employees, mainly union,
nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently
accruing benefits under these plans.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Pension
costs for Occidental&#146;s defined benefit pension plans, determined by independent actuarial valuations, are generally funded by
payments to trust funds, which are administered by independent trustees.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Other
Postretirement Benefit Plans</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>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 cost of providing
these benefits is based on claims filed and insurance premiums paid for the period. The total benefit costs, including the
postretirement costs, were approximately $120 million in 2006, $104 million in 2005 and $98 million in 2004.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Adoption
of SFAS No. 158</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>As
discussed in Note 3, on December 31, 2006, Occidental adopted the provisions of SFAS No. 158. This statement requires an employer to
recognize the overfunded or underfunded amounts of its defined benefit pension and postretirement plans as an asset or liability and
recognize changes in the funded status of these plans in the year in which the changes occur through OCI, if they are not recognized
in the income statement. The following table shows the effect of adopting SFAS No. 158 on the consolidated balance sheet:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="86%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>As of
      December 31, 2006 (in millions)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>Debit/(Credit)</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="86%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      assets</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>(42</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="86%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      credits and other liabilities &#150; other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>(233</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="86%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred and
      other domestic and foreign income taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>104</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="86%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minority
      interest</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>3</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="86%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accumulated
      other comprehensive loss</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D"style='font-size:9pt'><b>168</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>64</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Obligations
and Funded Status</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
uses a measurement date of December 31 for all defined benefit pension and postretirement benefit plans.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="11" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unfunded
      Plans</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Changes
      in benefit obligation:</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Benefit
      obligation &#151; beginning of year</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>492</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>448</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>614</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>586</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>26</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>25</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Service
      cost &#151; benefits earned during the period</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest
      cost on projected benefit obligation</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>25</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Actuarial
      (gain) loss</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(6</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>16</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      currency exchange rate changes</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Acquisitions
      <sup>(a)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>28</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Benefits
      paid</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(30</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(24</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(54</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(51</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Special
      termination benefits <sup>(b)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Plan
      amendments</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Benefit
      obligation &#151; end of year</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>523</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>492</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>619</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>614</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Changes
      in plan assets:</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Fair value
      of plan assets &#151; beginning of year</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>424</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>398</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Actual
      return on plan assets</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>68</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      currency exchange rate changes</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Employer
      contribution</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>66</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Benefits
      paid</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(30</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(24</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Acquisitions
      <sup>(a)</sup></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Fair value
      of plan assets &#151; end of year</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>556</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>424</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Funded
      (unfunded) status:</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(68</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(619</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(614</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(26</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(24</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Relates
      to the acquisition of Tidelands in 2006 and Vulcan operating assets in 2005.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Relates
      to the Pottstown plant closure.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an
accumulated benefit obligation in excess of plan assets were $96 million, $90 million and $0, respectively, as of December 31, 2006,
and $94 million, $91 million and $4 million, respectively, as of December 31, 2005. The projected benefit obligation, accumulated
benefit obligation and fair value of plan assets for defined benefit pension plans with plan assets in excess of the accumulated
benefit obligation were $427 million, $404 million and $556 million, respectively, as of December 31, 2006, and $398 million, $377
million, and $420 million, respectively, as of December 31, 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has 401(h) accounts established within certain defined benefit pension plans. These plans allow Occidental to fund postretirement
medical benefits for employees at two of its operations. Contributions to these 401(h) accounts are made at Occidental's discretion.
All of Occidental's other postretirement benefit plans are unfunded.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Amounts
recognized in the consolidated balance sheets consist of:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="11" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unfunded
      Plans</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>As of
      December 31, (in millions)</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      assets</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>135</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>116</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accrued
      liabilities</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(53</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(50</font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deferred
      credits and other liabilities &#150; other</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(99</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(92</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(566</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(348</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(26</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(12</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="48%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(619</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(398</font></p></td>
    <td width="5%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(26</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(12</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Amount
      includes $4 million classified as prepaid expenses and other.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>65</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, AOCI included the following after-tax balances:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unfunded
      Plans</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(in
      millions)</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      loss</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>28</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>128</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Prior
      service cost</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="48%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>132</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
does not expect any plan assets to be returned during 2007.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Components
of Net Periodic Benefit Cost and Other Amounts Recognized in OCI</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="30%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="8" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="17" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="8" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unfunded
      Plans</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="8" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Net
      periodic benefit costs:</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Service cost
      &#151; benefits earned during the period</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest
      cost on benefit obligation</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>25</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Expected
      return on plan assets</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(33</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(32</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(25</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Amortization
      of prior service cost</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Recognized
      actuarial loss</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>16</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cost
      of special termination benefits <sup>(a)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Currency
      adjustments</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="30%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Net
      periodic benefit cost</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>60</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Relates
      to the Pottstown plant closure.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from AOCI into net periodic
benefit cost over the next fiscal year are both $1 million. The estimated net loss and prior service cost for the other defined
benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year are $13
million and $1 million, respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Additional
Information</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
defined benefit pension and postretirement defined benefit plan obligations are determined based on various assumptions and discount
rates. Occidental uses the fair value of assets to determine expected return on plan assets in calculating pension expense.
Occidental funds and expenses negotiated pension increases for domestic union employees over the terms of the applicable collective
bargaining agreements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth the weighted average assumptions used to determine Occidental's benefit obligation and net periodic
benefit cost for domestic plans:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="49%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="7" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td></tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unfunded
      Plans</font></p></td>
    <td width="5%">&nbsp;</td>
    <td colspan="3" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Benefit
      Obligation Assumptions:</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discount
      rate</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.53%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.33%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.53%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.33%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.53%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.33%</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Rate
      of compensation increase</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.00%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.00%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Net
      Periodic Benefit Cost Assumptions:</b></font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discount
      rate</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.33%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.50%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.33%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.50%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.33%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.50%</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Assumed
      long term rate of return on assets</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.50%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.00%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.50%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.00%</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:10pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Rate
      of compensation increase</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.00%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.00%</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
domestic pension plans, Occidental bases the discount rate on the average yield provided by the Moody&#146;s Aaa Corporate Bond
Index. The weighted average rate of increase in future compensation levels is consistent with Occidental&#146;s past and anticipated
future compensation increases for employees participating in retirement plans that determine benefits using compensation. The
assumed long-term rate of return on assets is estimated with regard to current market factors but within the context of historical
returns. Historical returns and correlation of equities and fixed income securities are studied. Current market factors such as
inflation and interest rates are also evaluated.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>66</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
pension plans outside of the United States, the assumptions used in determining the benefit obligation vary by country. For
countries in hyperinflationary environments, real discount rates were used. The real discount rates used in these countries ranged
from a low of 4.8 percent to a high of 5.5 percent at both December 31, 2006 and 2005. For countries under a more stable
inflationary environment, the nominal discount rates were used in determining the benefit obligation. The nominal discount rates
used ranged from a low of 3 percent to a high of 11 percent at December 31, 2006 and a low of 3 percent to a high of 6.8 percent at
December 31, 2005. Occidental bases its discount rate for foreign pension plans on rates indicative of government and/or investment
grade corporate debt in the applicable country. The average rate of increase in future compensation levels ranged from a low of 2
percent to a high of 10 percent in 2006 and from a low of 2 percent to a high of 6 percent in 2005, dependent on local economic
conditions and salary budgets. The expected long-term rate of return on plan assets was 5.5 percent in excess of local inflation in
both 2006 and 2005.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
postretirement benefit obligation was determined by application of the terms of medical and dental benefits and life insurance
coverage, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and health
care cost trend rates projected at a Consumer Price Index (CPI) increase of 2.5 percent and 3 percent as of December 31, 2006 and
2005 (beginning in 1993, participants other than certain union employees have paid for all medical cost increases in excess of
increases in the CPI). For certain union employees, the health care cost trend rates were projected at annual rates ranging ratably
from 11 percent in 2006 to 6 percent through the year 2010 and level thereafter. A 1-percent increase or a 1-percent decrease in
these assumed health care cost trend rates would result in an increase of $20 million or a reduction of $19 million, respectively,
in the postretirement benefit obligation as of December 31, 2006, and a corresponding increase or reduction of $1 million in
interest cost in 2006. The annual service costs would not be materially affected by these changes.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that,
depending on the nature of the changes, could cause increases or decreases in the plan liabilities accrued.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Asset
allocations of Occidental&#146;s defined benefit pension and funded postretirement benefit plans are as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="44%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension Benefits</font></p></td>
    <td width="12%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement Benefit</font></p></td></tr>
  <tr>
    <td width="44%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Funded
      Plans</font></p></td></tr>
  <tr>
    <td width="44%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>As of
      December 31,</font></p></td>
    <td width="12%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="12%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td></tr>
  <tr>
    <td width="44%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Asset
      Category:</b></font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="44%" valign=bottom>
      <p style='margin-left:10.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Equity
      securities</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>60</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>55</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>58</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td></tr>
  <tr>
    <td width="44%" valign=bottom>
      <p style='margin-left:10.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Debt securities</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>40</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>45</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>42</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td></tr>
  <tr>
    <td width="44%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>100</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>100</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>100</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>%</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>100</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>%</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
employs a total return investment approach that uses a mix of equity and fixed income investments to maximize the long-term return
of plan assets at a prudent level of risk. The investments are monitored by Occidental&#146;s Investment Committee in its role as
fiduciary. The Investment Committee, consisting of senior Occidental executives, selects and employs various external professional
investment management firms to manage specific assignments across the spectrum of asset classes. The resulting aggregate investment
portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified
across United States and non-United States stocks, as well as differing styles and market capitalizations. Other asset classes such
as private equity and real estate may be used to enhance long-term returns while improving portfolio diversification. Investment
performance is measured and monitored on an ongoing basis through quarterly investment and manager guideline compliance reviews,
annual liability measurements, and periodic studies.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
expects to contribute $3 million to its defined benefit pension plans during 2007. All of the contributions are expected to be in
the form of cash.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Estimated
future benefit payments, which reflect expected future service, as appropriate, are as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="45%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="10%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pension
      Benefits</font></p></td>
    <td width="12%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Postretirement
      Benefits</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2007</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2008</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>55</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2009</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>55</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2010</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>30</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>54</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2011</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>54</font></p></td></tr>
  <tr>
    <td width="45%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2012 &#151; 2016</font></p></td>
    <td width="10%">&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>199</font></p></td>
    <td width="12%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-right:.25in;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>265</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>67</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
14&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS AND RELATED-PARTY TRANSACTIONS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006 and 2005, investments in unconsolidated entities comprised $498 million and $906 million of equity method
investments and $294 million and $303 million of advances to equity method investees, respectively. The remainder of the 2006
investments in unconsolidated entities reflects available-for-sale securities.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>EQUITY
INVESTMENTS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, Occidental&#146;s equity investments consist mainly 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
$113 million, $161 million and $91 million to Occidental in 2006, 2005 and 2004, respectively. At December 31, 2006, cumulative
undistributed earnings of equity-method investees since acquisition were $104 million. At December 31, 2006, Occidental&#146;s
investments in equity investees exceeded the underlying equity in net assets by $255 million, of which $135 million represents
goodwill that will not be amortized and $115 million represents intangible assets, which will be amortized over the life of the
underlying assets, when placed into service.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table presents Occidental&#146;s percentage interest in the summarized financial information of its equity method
investments:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31, (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,569</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,637</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,785</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Costs and
      expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,387</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,405</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,672</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>232</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>113</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>As of
      December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>151</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>690</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Non-current
      assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>812</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,043</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>101</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>450</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      debt</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>562</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,128</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      non-current liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>26</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>600</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Stockholders&#146;
      equity</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>274</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>554</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental&#146;s
investment in the Dolphin Project consists of two separate economic interests: a 24.5-percent undivided interest in a Development
and Production Sharing Agreement, which is proportionately consolidated in the financial statements, and a 24.5-percent ownership
interest in the stock of Dolphin Energy, which is accounted for as an equity investment. In July 2005, Dolphin Energy entered into a
bridge loan in an amount of $2.45 billion. The proceeds of the new bridge loan were used to pay off amounts outstanding on a
previous bridge loan and are being used to fund the construction of the Dolphin Project. The new bridge loan has a term of four
years, is a revolving credit facility for the first two years and may be converted to a term loan thereafter. In September 2005,
Dolphin Energy entered into an agreement with banks to provide a $1.0 billion Islamic-law-compliant facility to fund the
construction of a certain portion of the Dolphin Project. This four-year financing facility is structured as a transaction in which
Dolphin Energy constructs part of the midstream portion of the Dolphin Project on behalf of a group of Islamic investors and enters
into a lease to use such assets upon construction completion. Occidental guarantees 24.5 percent of both of these obligations of
Dolphin Energy. At December 31, 2006, Occidental&#146;s portion of the bridge loan and Islamic-law-compliant facility draw downs
were $469 million and $184 million, respectively. Occidental had recorded $473 million on the balance sheet at December 31, 2006,
for the combined bridge loan and Islamic-law-compliant facility. The remaining amounts of the bridge loan and Islamic-law-compliant
facility drawdowns are included in the guarantee amounts discussed in Note 9.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
Ecuador, Occidental has a 14-percent interest in the OCP oil export pipeline. As of December 31, 2006, Occidental&#146;s net
investment in and advances to the project totaled $72 million. Occidental reports this investment in its consolidated financial
statements using the equity method of accounting. The project was funded in part by senior project debt. The senior project debt is
to be repaid with the proceeds of ship-or-pay tariffs of certain upstream producers in Ecuador. In May 2006, Ecuador terminated
Occidental&#146;s contract for the operation of Block 15, which comprised all of its oil-producing operations in the country, and
seized Occidental&#146;s Block 15 assets. Occidental&#146;s guarantee of its share of the ship-or-pay obligations provides the
lenders the right to require Occidental to make an advance tariff payment as a result of the expropriation. At December 31, 2006,
the total pre-tax advance tariff payment of approximately $95 million was accrued in Occidental&#146;s consolidated financial
statements and was included in the net after-tax charge of $296 million discussed in Note 2. This advance tariff would be used by
the pipeline company to service or prepay project debt. At December 31, 2006, Occidental also had obligations relating to
performance bonds totaling $14 million.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>68</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has a 50-percent interest in Elk Hills Power LLC (EHP), a limited liability company that operates a gas-fired, power-generation
plant in California. OCP and EHP are VIEs under the provisions of FIN&nbsp;46. Occidental has concluded it is not the primary
beneficiary of OCP or EHP and, therefore, accounts for these investments using the equity method.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>ADVANCES
TO EQUITY INVESTEES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2004,
Occidental entered into a note receivable (Note) with an equity method investee. The Note bears interest at 2 percent and is due
December 31, 2007. At December 31, 2006, the outstanding balance on the Note was $196 million. In 2004, Occidental converted a
contribution to an equity method investee into a subordinated revolving credit agreement (Revolver). The Revolver bears interest at
18 percent and expires on December 31, 2021. At December 31, 2006, the outstanding balance on the Revolver and related accrued
interest were $55 million and $1 million, respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>AVAILABLE-FOR-SALE
SECURITIES</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Lyondell</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Starting
2002, when Occidental acquired an equity investment in Lyondell Chemical Company (Lyondell), two senior executives of Occidental
held seats on Lyondell&#146;s board of directors. One of Occidental&#146;s senior executives did not stand for re-election to
Lyondell&#146;s board of directors at its annual meeting on May 4, 2006. As a result, Occidental management believes that it no
longer has the ability to exercise significant influence over Lyondell&#146;s financial and operating policies and has discontinued
accruing its share of Lyondell earnings or losses under equity-method accounting. Subsequent to May 4, 2006, Occidental classified
its Lyondell shares as an available-for-sale investment.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
October 2006, Occidental sold 10 million shares of Lyondell's common stock in a registered public offering for a pre-tax gain of $90
million and gross proceeds of $250 million. At December 31, 2006, Occidental owned 20.3 million Lyondell shares of common stock
(8-percent ownership), with a carrying value of $519 million, and warrants to purchase an additional five million shares of Lyondell
common stock. In February 2007, Occidental exercised these warrants and received approximately 700,000 shares of Lyondell stock.
Following this transaction, Occidental owned approximately 21 million shares of Lyondell common stock. Occidental has no current
plans to divest the remaining Lyondell shares. However, Occidental regularly reviews and analyzes its investments and other
operations in order to determine how its stockholders&#146; interests are best served.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2005,
Occidental sold 11 million shares of Lyondell stock for gross proceeds of approximately $300 million. This sale resulted in a 2005
pre-tax gain of $140 million.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In 2004,
Lyondell acquired Millennium Chemicals Inc. by issuing additional shares of Lyondell common stock. Under SAB 51, Occidental was
required to record its share of the increase in Lyondell's net equity resulting from this issuance. Occidental increased its
carrying value in Lyondell and recorded a pre-tax gain of $121 million.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:10pt'><b>Premcor</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Valero
Energy Corp.&#146;s (Valero) acquisition of Premcor, Inc. resulted in a $704 million pre-tax gain and the subsequent sale of all of
the Valero common shares received resulted in an additional $22 million pre-tax gain in 2005.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>RELATED-PARTY
TRANSACTIONS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
purchases power, steam and chemicals from its equity investees and sells chemicals and power to its equity investees at
market-related prices. During 2006, 2005 and 2004, Occidental entered into the following related-party transactions and had the
following amounts due from or to its related parties:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>December 31,
      (in millions)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td  colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>688</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,275</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,035</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>589</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>980</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>529</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Services</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Advances and amounts due from</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>216</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>256</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>315</font></p></td></tr>
  <tr>
    <td width="70%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Amounts due to</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>In 2006,
      2005 and 2004, purchases from Lyondell accounted for 38, 59 and 61 percent, respectively.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>69</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:12pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
15&nbsp;&nbsp;&nbsp;&nbsp;INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has identified two reportable segments through which subsidiaries and affiliates of OPC conduct Occidental's continuing operations:
oil and gas and chemical. The factors for determining the reportable segments were based on the distinct nature of their operations.
They are managed as separate business units because each requires and is responsible for executing a unique business
strategy.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Earnings
of industry segments and geographic areas generally exclude income taxes, interest income, interest expense, environmental
remediation expenses, unallocated corporate expenses, discontinued operations and cumulative effect of changes in accounting
principles, but include gains and losses from dispositions of segment and geographic area assets and results and other earnings from
the segments&#146; equity investments (except as noted below).</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Identifiable
assets are those assets used in the operations of the segments. Corporate and other assets consist of cash, short-term investments,
certain corporate receivables, an 8-percent available-for-sale investment in Lyondell, 12-percent ownership interest in Premcor
(sold in 2005), a leased cogeneration facility in Taft, Louisiana, a cogeneration facility at Ingleside, Texas (consolidated in
October 2006) and a common carrier oil pipeline company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Industry
Segments</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="51%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil and
      Gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Corporate
        <br>and Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:10pt'><b>YEAR
      ENDED DECEMBER 31, 2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12,676</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'>&nbsp;<b><sup>(a)</sup></b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,815</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'>&nbsp;<b><sup>(b)</sup></b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>170</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,661</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pretax
      operating profit (loss)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,239</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>901</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(239</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)
      <sup>(c)</sup></b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,901</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,466</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)
      <sup>(f)</sup></b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,466</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(253</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(253</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income (loss)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,239</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>901</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,958</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)
      <sup>(f)</sup></b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unconsolidated
      equity investments</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>515</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>103</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>726</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,344</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment additions, net <sup>(g)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,721</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>251</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,005</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,761</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>260</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,042</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      assets</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25,418</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,762</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,175</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><b><font face="arial narrow,arial" style='font-size:10pt'>YEAR
      ENDED DECEMBER 31, 2005</font></b></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9,805</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,641</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>151</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,597</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pretax
      operating profit<sup></sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,968</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>607</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>392</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;
      <sup>(c)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,967</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,927</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)
      <sup>(f)</sup></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,927</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>238</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>238</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cumulative
      effect of changes in accounting principles, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income (loss)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,968</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>607</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;
      <sup>(e)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,294</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)
      <sup>(f)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,281</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unconsolidated
      equity investments</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>436</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>92</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>681</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,209</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment additions, net <sup>(g)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,137</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>173</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,324</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,151</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>251</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,422</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      assets</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>18,394</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,845</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,869</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26,108</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><b><font face="arial narrow,arial" style='font-size:10pt'>YEAR
      ENDED DECEMBER 31, 2004</font></b></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,093</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,675</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>111</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,879</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pretax
      operating profit (loss)<sup></sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,021</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>414</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(390</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)
      <sup>(c)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,045</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,639</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)
      <sup>(e,f)</sup></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,639</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>162</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>162</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income (loss)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,021</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>414</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,867</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)
      <sup>(f)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,568</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unconsolidated
      equity investments</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>426</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>83</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,218</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,727</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment additions, net <sup>(g)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,526</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>155</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>39</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,720</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>989</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>243</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,251</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="51%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      assets</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,549</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,470</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,372</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21,391</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:3pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'>(See footnotes on
next page)</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>70</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:3pt;margin-bottom:0pt;text-align:left'><font face="arial narrow,arial" style='font-size:8pt'><u>Footnotes:</u></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil sales
      represented approximately 80 percent, 76 percent and 76 percent of net sales for the years ended December 31, 2006, 2005 and
      2004, respectively. In 2004, sales to a major oil and gas company totaled approximately 10.5 percent of consolidated net
      sales.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total
      product sales for the chemical segment were as follows:</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="80%" align=center>
  <tr>
    <td width="37%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Basic
      Chemicals</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Vinyls</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Performance
      Chemicals</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>Year
      ended December 31, 2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>48%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>48%</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>4%</b></font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Year ended
      December 31, 2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>42%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>50%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>8%</font></p></td></tr>
  <tr>
    <td width="37%" valign=bottom>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Year ended
      December 31, 2004</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>33%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>57%</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>10%</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      unallocated net interest expense, administration expense, environmental remediation and other pre-tax special items noted in
      footnote (f) below.</font></p></td></tr>
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Oil &amp;
      Gas includes a 2005 contract settlement charge of $26 million and a hurricane insurance charge of $18
      million.</font></p></td></tr>
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(e)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Chemical
      includes the 2005 write-off of plants of $159 million and a hurricane insurance charge of $11 million.</font></p></td></tr>
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(f)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      the following significant items affecting earnings for the years ended December 31:</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="80%" align=center>
  <tr>
    <td width="60%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Benefit
      (Charge) </font><font face="arial narrow,arial" style='font-size:7pt'>(In millions)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>2004</font></p></td>
        <td width="9">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>CORPORATE</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Pre-tax
      operating profit (loss)</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Debt
      purchase expense</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(31</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(42</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Litigation
      settlements</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>108</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Trust
      preferred redemption charge</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(11</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on sale of Lyondell shares</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>90</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>140</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on Premcor-Valero shares</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>726</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Gain
      on Lyondell stock issuance</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>121</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Equity
      investment impairment</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(15</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Equity
      investment hurricane insurance charge</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(2</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Hurricane
      insurance charge</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(10</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(15</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="60%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>167</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>797</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>95</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Income
      taxes</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>State
      tax issue charge *</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(10</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Settlement
      of federal tax issues *</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>619</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>47</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Deferred
      tax write-off due to compensation program changes *</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(40</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Reversal
      of tax reserves *</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>335</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='margin-left:6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Tax
      effect of pre-tax adjustments</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(41</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(219</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(35</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>)</font></p></td></tr>
  <tr>
    <td width="60%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(81</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>725</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>12</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Discontinued
      operations, net *</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>(253</b></font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>)</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>238</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>162</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="60%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'><b>Changes
      in accounting principles, net *</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>3</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:8pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="80%" align=center>
  <tr>
    <td width="1.5%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>*</font></p></td>
    <td width="98.5%" valign=bottom>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:7pt'>Amounts
      shown after-tax.</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(g)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Excludes
      acquisitions. Amounts include capitalized interest of $51 million in 2006, $26 million in 2005 and $10 million in
      2004.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Geographic
Areas</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="34%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td colspan="8" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net sales
      <sup>(a)</sup></font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="8" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment, net</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="1%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United States</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11,857</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,553</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8,055</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>16,657</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13,550</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11,612</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Qatar</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,639</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,299</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>900</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,727</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,671</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,497</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Colombia</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>995</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>829</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>629</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>304</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>214</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>207</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Yemen</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>877</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>678</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>537</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>495</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>276</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>329</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oman</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>633</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>489</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>253</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>815</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>489</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>271</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Libya</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>549</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>183</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>244</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>223</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Argentina</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>527</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,993</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Canada</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>249</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>276</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>230</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>29</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pakistan</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>198</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>182</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>171</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>73</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>92</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>123</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
      Arab Emirates</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>825</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>568</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>240</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      Foreign</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>137</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>108</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>104</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>154</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-indent:12pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      Foreign</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,804</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,044</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,824</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,659</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,621</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,731</font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,661</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,597</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,879</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,316</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17,171</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,343</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=bottom>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Sales are
      shown by individual country based on the location of the entity making the sale.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>71</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
16&nbsp;&nbsp;&nbsp;&nbsp;CONDENSED CONSOLIDATING FINANCIAL INFORMATION</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Vintage
Petroleum, LLC is the Occidental subsidiary into which Vintage merged. Payment of the Vintage Petroleum, LLC 8.25-percent senior
notes due 2012 is guaranteed by OPC (Guarantor). The following condensed supplemental consolidating financial information reflects
the summarized financial information of Vintage Petroleum, LLC, and its Guarantor and the Guarantor&#146;s non-guarantor
subsidiaries (in millions):</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td colspan="17" valign=bottom>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CONDENSED
      CONSOLIDATING BALANCE SHEET</b>
        <br>As of December 31, 2006</font></p></td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
        <br>Petroleum
        <br>Corporation</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Vintage
        <br>Petroleum,
        <br>LLC</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Non-
        <br>Guarantor
        <br>Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Eliminations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>ASSETS</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,686</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>202</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,118</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,006</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investments
      in subsidiaries and unconsolidated entities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>37,093</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,127</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(36,897</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,344</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property,
      plant and equipment, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,910</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19,403</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,316</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      non-current assets</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,530</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>717</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22,891</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(29,449</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>689</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>45,312</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,850</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47,539</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(66,346</b></font></p></td>
    <td width="2%" style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>LIABILITIES
      AND EQUITY</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Current
      liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>521</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>166</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,037</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,724</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Long-term
      debt, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,706</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>294</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>619</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,619</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      long-term liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>23,901</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,796</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9,239</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(29,449</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,487</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minority
      interest</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>341</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>341</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Stockholders&#146;
      equity</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19,184</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,594</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33,303</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(36,897</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19,184</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>45,312</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,850</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47,539</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(66,346</b></font></p></td>
    <td width="2%" style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,355</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td colspan="17" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CONDENSED
      CONSOLIDATING STATEMENT OF INCOME</b>
        <br>For the year ended December 31, 2006</font></p></td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
        <br>Petroleum
        <br>Corporation</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Vintage
        <br>Petroleum,
        <br>LLC</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Non-
        <br>Guarantor
        <br>Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Eliminations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>REVENUES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>868</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>16,793</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,661</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest,
      dividends and other income</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>128</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>624</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(254</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>499</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>128</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>869</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,417</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(254</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,160</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>COSTS
      AND OTHER DEDUCTIONS</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cost of
      sales</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>517</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,778</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8,295</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Selling,
      general and administrative and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>283</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>92</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,369</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,744</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest and
      debt expense, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>478</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>23</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(254</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>291</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>761</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>632</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9,191</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(254</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10,330</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      before taxes and other items</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(633</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>237</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8,226</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,830</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:18pt;text-indent:-9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Provision
      for domestic and foreign income and other taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(231</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>86</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,611</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,466</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Minority
      interest</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>111</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>111</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(Income)/loss
      from equity investments</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,584</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(182</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,584</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(182</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income from
      continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>151</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,686</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,584</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,435</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='text-indent:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>41</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(294</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(253</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>NET
      INCOME</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>192</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,392</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,584</b></font></p></td>
    <td width="2%" style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,182</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>72</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td colspan="17" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>CONDENSED
      CONSOLIDATING STATEMENT OF CASH FLOWS</b>
        <br>For the year ended December 31, 2006</font></p></td></tr>
  <tr>
    <td width="34%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
        <br>Petroleum
        <br>Corporation</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Vintage
        <br>Petroleum,
        <br>LLC</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Non-
        <br>Guarantor
        <br>Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Eliminations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>CASH
      FLOW FROM OPERATING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operating
      cash flow from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,907</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>289</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,799</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,181</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Operating
      cash flow from discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>74</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>98</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>172</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      cash provided (used) by operating activities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,907</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>363</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,897</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,353</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>CASH
      FLOW FROM INVESTING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Capital
      expenditures</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(225</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,777</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,005</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchase
      of businesses, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,413</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(132</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,545</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      investing, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>944</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>213</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,172</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investing
      cash flow from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,401</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>719</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,696</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,378</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Investing
      cash flow from discontinued operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(11</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      cash provided (used) by investing activities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,401</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>725</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,707</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,383</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%">
      <p style='text-align:left;margin-top:6pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>CASH
      FLOW FROM FINANCING ACTIVITIES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proceeds
      from long-term debt</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>173</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>173</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Payments
      on long-term debt and capital lease liabilities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(557</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(274</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(235</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,066</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchase
      of treasury stocks</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,473</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,473</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      dividends paid</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(646</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(646</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Intercompany</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,846</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(810</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5,036</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      financing, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>193</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>193</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      cash provided (used) by financing activities</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,363</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,084</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5,098</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,819</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(Decrease)
      Increase in cash and cash equivalents</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(945</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>92</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(849</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="34%" valign=bottom>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      and cash equivalents &#151; beginning of period</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,161</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="10%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,188</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="34%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cash
      and cash equivalents &#151; end of period</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,216</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>119</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="10%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,339</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='text-align:left;margin-top:24pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
17&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2007, Occidental sold its 50-percent interest in the Russian Vanyoganneft joint venture to TNK-BP for approximately $485
million. At December 31, 2006, Occidental's net proved Vanyoganneft reserves were an estimated 33 million BOE (unaudited) and its
net production was approximately 27,000 BOE per day in 2006. Occidental recorded a gain of approximately $400 million resulting from
the sale in the first quarter of 2007.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In
January 2007, Occidental completed a cash tender offer for its 10.125-percent senior debentures due 2009, 9.25-percent senior
debentures due 2019, 8.75-percent senior notes due 2023, 7.2-percent senior debentures due 2028 and 8.45-percent senior notes due
2029, resulting in the repurchase of a portion of these debt instruments totaling $659 million. The repurchases were funded with
Occidental&#146;s cash on hand and resulted in a debt repurchase expense of $165 million.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Since
December 31, 2006, Occidental has resolved certain legal disputes that it expects will result in a gain of approximately $108
million in the first quarter of 2007.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>73</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt;border-bottom:#00009D 1.25pt solid'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>NOTE
18&nbsp;&nbsp;&nbsp;&nbsp;COSTS AND RESULTS OF OIL AND GAS PRODUCING ACTIVITIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Ecuador terminated Occidental&#146;s contract for the operation of Block 15, which comprised all of its oil-producing
operations in the country, and seized Occidental&#146;s Block 15 assets. As a result of the seizure, Occidental has classified its
Block 15 operations as discontinued operations on a retrospective basis and excluded them from all tables in Note 18.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Capitalized
costs relating to oil and gas producing activities and related accumulated DD&amp;A were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="24%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(c)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>DECEMBER
      31, 2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,085</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,493</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,395</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>259</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27,232</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>76</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      properties <sup>(a)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>802</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>655</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>265</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>37</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,759</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      property costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17,887</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,148</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,660</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>296</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>28,991</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>77</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Support
      facilities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>890</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>95</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>148</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>106</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,239</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>19</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      capitalized costs </b></font><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,777</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,243</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6,808</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>402</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30,230</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>96</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-3.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Accumulated
      depreciation, depletion and amortization <sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5,217</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(888</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,701</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(293</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(9,099</b></font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(36</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      capitalized costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>13,560</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,355</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,107</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>109</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21,131</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>60</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DECEMBER
      31, 2005</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13,756</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>791</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,923</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>247</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19,717</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      properties <sup>(a)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>475</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>385</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>896</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      property costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,231</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>791</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,308</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>283</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20,613</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Support
      facilities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>700</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>109</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>103</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>948</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      capitalized costs </b><sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,931</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>827</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,417</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>386</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21,561</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>64</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-3.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Accumulated
      depreciation, depletion and amortization <sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(4,292</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(613</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(2,189</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(259</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(7,353</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(26</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net capitalized costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,639</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>214</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,228</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>127</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14,208</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>38</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>DECEMBER
      31, 2004</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11,480</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>730</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,048</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>256</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16,514</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      properties <sup>(a)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>457</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>18</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>476</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      property costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11,937</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>731</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,066</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>256</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16,990</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Support
      facilities</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>500</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>42</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>100</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>86</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>728</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Total
      capitalized costs </b></font><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12,437</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>773</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,166</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>342</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17,718</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:.25in;text-indent:-3.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accumulated
      depreciation, depletion and amortization <sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(3,553</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(565</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(1,829</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(217</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(6,164</font></p></td>
    <td width="4%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      capitalized costs</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8,884</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>208</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,337</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>125</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11,554</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34</font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The 2006
      amount primarily consists of additions in Argentina, California and Yemen from the Vintage acquisition as well as existing
      unproved properties in California, Libya and Oman. The 2005 amount primarily consists of California, Libya and Oman. The 2004
      amount consists of California and Oman.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      costs related to leases, exploration costs, lease and well equipment, pipelines and terminals, gas plant, other equipment and
      capitalized interest.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      capitalized costs for equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a
      Colombian affiliate.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      accumulated valuation allowance for unproved properties of $108 million in 2006, $108 million in 2005 and $28 million in
      2004.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>74</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Costs
incurred in oil and gas property acquisition, exploration and development activities, whether capitalized or expensed, were as
follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="24%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>FOR
      THE YEAR ENDED
        <br>DECEMBER 31,2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property
      Acquisition Costs <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,094</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,408</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>397</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,899</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>377</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>655</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>107</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,142</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>40</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>61</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>177</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>37</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>315</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,344</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>320</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>792</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,470</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Costs
      Incurred </b><sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,855</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,444</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,473</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>54</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8,826</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2005</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property
      Acquisition Costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,744</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>38</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,782</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>343</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>398</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>39</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>102</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>244</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>942</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>834</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,846</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Costs
      Incurred </b><sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,776</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>112</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,262</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>120</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,270</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2004</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Property
      Acquisition Costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Proved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>94</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>158</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(12</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unproved
      Properties</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>31</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>26</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>52</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>137</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>581</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>54</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>715</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,361</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:solid black 1.0pt'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:solid black 1.0pt'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Costs
      Incurred </b><sup>(d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>659</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>174</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>764</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>67</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,664</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      equity investees&#146; costs in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a Colombian
      affiliate.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      acquisition costs and related step-up for deferred income taxes of $1.34 billion for the purchase of Vintage. There was no
      goodwill recorded for this transaction.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      asset retirement costs of $76 million in 2006, $12 million in 2005 and $25 million in 2004.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:2pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Excludes
      capitalized
      CO</font><font face="arial narrow,arial" style='font-size:5pt'>2</font><font face="arial narrow,arial" style='font-size:8pt'>
      of $64 million in 2006, $59 million in 2005 and $54 million in 2004.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>75</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
results of operations of Occidental&#146;s oil and gas producing activities, which exclude oil and gas trading activities and items
such as asset dispositions, corporate overhead, interest and royalties, were as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="24%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>In
      millions</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>FOR
      THE YEAR ENDED
        <br>DECEMBER 31, 2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,066</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,358</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,659</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(d)</sup></b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>173</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12,256</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>223</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(d)</sup></b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,717</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>280</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>351</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,365</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>149</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>88</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>140</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>35</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>295</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>410</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>121</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>600</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>926</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>275</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>525</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>35</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,761</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,925</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>724</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,522</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>64</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,235</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>55</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense<sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,151</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>310</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,424</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(d)</sup></b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>26</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,911</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(d)</sup></b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,774</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>414</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,098</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>38</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,324</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2005</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,000</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>666</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,633</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>159</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9,458</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>286</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,311</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>74</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>207</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,607</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>203</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>132</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>53</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>72</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>313</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>291</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>112</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>422</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>706</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>55</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>347</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>42</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,150</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,560</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>478</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,911</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,966</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>67</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense<sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>982</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>224</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,028</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,250</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,578</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>254</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>883</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,716</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>64</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2004</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,467</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>505</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,690</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>149</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,811</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>200</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,016</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>70</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>175</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,277</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>122</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>117</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>22</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>49</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>208</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>226</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>77</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>334</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>622</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>276</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>988</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,486</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>354</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,142</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>22</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,004</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>59</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense<sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>689</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>179</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>525</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,407</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,797</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>175</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>617</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,597</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50</font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      results of operations for equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests
      in a Colombian affiliate.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Revenues
      from net production exclude royalty payments and other adjustments.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>United
      States federal income taxes reflect certain expenses related to oil and gas activities allocated for United States income tax
      purposes only, including allocated interest and corporate overhead. Foreign income taxes were included in geographic areas on
      the basis of operating results.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Revenues and
      income tax expense include taxes owed by Occidental but paid by governmental entities on its
      behalf.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>76</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:12pt'><b>Results per Unit
of Production </b></font><font face="arial narrow,arial" style='font-size:9pt'>(Unaudited)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="24%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>FOR
      THE YEAR ENDED
        <br>DECEMBER 31, 2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      from net production</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      ($/bbl.)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>58.13</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>51.57</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>61.43</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56.56</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>57.87</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34.25</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      gas ($/Mcf)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6.51</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.99</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.97</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.94</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.70</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.14</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Barrel
      of oil equivalent ($/bbl.)<sup>(c,d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>52.78</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>48.63</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>59.40</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27.62</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>52.83</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29.75</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12.83</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10.02</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.22</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.76</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11.23</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15.40</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.66</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.15</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3.27</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.65</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.40</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.19</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3.06</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.69</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.84</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3.47</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.85</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.86</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6.91</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9.84</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12.30</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.52</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.35</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.30</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29.32</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25.93</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32.77</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10.22</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29.00</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11.00</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense <sup>(e)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.60</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11.11</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7.06</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.11</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.49</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.49</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b><sup>(b)</sup></b></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>20.72</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14.82</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25.71</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6.11</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>20.51</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.51</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2005</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      from net production</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      ($/bbl.)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50.80</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51.20</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>49.77</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46.75</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50.50</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34.75</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      gas ($/Mcf)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.52</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.21</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.16</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Barrel
      of oil equivalent ($/bbl.)<sup>(c,d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>47.80</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51.20</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46.77</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24.04</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46.97</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33.28</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10.44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.69</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.54</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.27</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.81</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19.76</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.05</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.07</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.50</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10.89</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.72</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.32</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.46</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.00</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.97</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.31</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.75</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.62</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.23</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.30</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.35</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.30</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.77</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28.37</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.75</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27.43</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27.83</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11.00</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense <sup>(e)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.82</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17.21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.78</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.42</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.47</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.86</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20.55</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19.54</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23.65</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.14</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20.36</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.14</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='text-align:left;margin-top:0in;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>FOR THE
      YEAR ENDED
        <br>DECEMBER 31, 2004</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revenues
      from net production</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      ($/bbl.)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37.72</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.99</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34.88</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33.13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.82</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23.94</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:17.25pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      gas ($/Mcf)</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.35</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.97</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.25</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.60</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Barrel
      of oil equivalent ($/bbl.)<sup>(c,d)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>35.97</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.99</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32.16</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20.63</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34.68</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23.94</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.18</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.83</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.04</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12.11</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploration
      expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.94</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.61</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.55</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.78</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.15</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.09</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      operating expenses</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.82</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.10</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.84</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.83</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:15.1pt;text-indent:-6.1pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Depreciation,
      depletion and amortization</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.01</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.22</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.62</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.37</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.45</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.66</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Pretax
      income</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20.02</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>25.93</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17.03</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.06</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19.20</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.25</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      tax expense <sup>(e)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.55</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.94</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.87</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.40</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="24%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Results
      of operations</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14.47</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12.82</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17.03</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.12</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>14.33</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.85</font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      results of operations for equity investees in Russia (sold in January 2007) and Yemen.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Revenues and
      income tax expense exclude taxes owed by Occidental but paid by governmental entities on its behalf.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural gas
      volumes have been converted to equivalent barrels based on energy content of six Mcf of gas to one barrel of
      oil.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Revenues
      from net production exclude royalty payments and other adjustments.</font></p></td></tr>
  <tr>
    <td width="4%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(e)</font></p></td>
    <td width="96%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>United
      States federal income taxes reflect certain expenses related to oil and gas activities allocated for United States income tax
      purposes only, including allocated interest and corporate overhead. Foreign income taxes were included in geographic areas on
      the basis of operating results.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>77</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>2006
      Quarterly Financial Data </b></font><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'>(Unaudited)</font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions, except per-share amounts</font></p></td>
    <td width="30%">
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Three months
      ended</font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>March
      31</b></font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>June
      30</b></font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>September
      30</b></font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>December
      31</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%">
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Segment
      net sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,125</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,292</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,207</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,052</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,241</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,273</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,265</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,036</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,396</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,599</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,522</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,144</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      profit</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,457</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,465</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,424</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,021</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:14.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Segment earnings</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,910</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,953</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,877</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,499</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>248</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>250</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>247</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>156</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,158</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,203</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,124</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,655</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unallocated
      corporate items</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest
      expense, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(29</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(33</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(18</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(51</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(905</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(882</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(885</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(794</b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(73</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(84</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(62</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>111</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,151</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,204</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,159</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>921</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>78</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(347</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,229</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>857</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,168</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>928</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.36</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.40</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.36</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.09</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.09</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(0.40</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.01</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.01</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.45</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.00</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.37</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.10</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.34</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.39</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.35</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.08</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.09</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(0.40</b></font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.01</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.01</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.43</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.99</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.36</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.09</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dividends
      per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.18</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.18</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.22</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.22</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Market
      price per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>High</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>49.00</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>54.26</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>55.45</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>52.40</b></font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Low</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>40.94</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44.78</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44.01</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>43.75</b></font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>78</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>2005
      Quarterly Financial Data </b></font><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'>(Unaudited)</font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions, except per-share amounts</font></p></td>
    <td width="30%">
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Three months
      ended</font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>March
      31</font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>June
      30</font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>September
      30</font></p></td>
    <td width="3%" valign=bottom>&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>December
      31</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%">
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Segment
      net sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,089</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,220</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,617</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,879</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,061</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,128</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,190</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,262</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>41</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      sales</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,173</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,385</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,857</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4,182</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      profit</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,675</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,797</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,066</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,251</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:14.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Segment earnings</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil
      and gas</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,279</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,255</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,638</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,796</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Chemical</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>214</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>225</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>165</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,493</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,480</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,641</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,961</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Unallocated
      corporate items</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Interest
      expense, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(61</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(47</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(70</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(23</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      taxes</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(584</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(26</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(574</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(743</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(51</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>73</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>660</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(89</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>797</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,480</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,657</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,106</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>49</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>87</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Cumulative
      effect of changes in accounting principles</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      income</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>846</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,536</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,747</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,152</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.00</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.84</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.05</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.36</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.06</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.07</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.06</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Basic
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.06</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.91</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.16</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.42</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Income
      from continuing operations</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.98</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.82</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.01</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.34</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Discontinued
      operations, net</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.06</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.07</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.06</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Diluted
      earnings per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.04</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.89</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.12</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.40</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dividends
      per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.155</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.155</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.155</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.18</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='text-align:left;margin-top:20.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Market
      price per common share</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>High</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37.45</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>40.50</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44.90</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43.43</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="47%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Low</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27.09</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32.03</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>38.74</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34.40</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>79</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Supplemental
Oil and Gas Information </b></font><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'>(Unaudited)</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following tables set forth Occidental&#146;s net interests in quantities of proved developed and undeveloped reserves of crude oil,
condensate and natural gas and changes in such quantities. Crude oil reserves include condensate. The reserves are stated after
applicable royalties. These estimates include reserves in which Occidental holds an economic interest under PSCs and other economic
arrangements.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
reserve estimation process involves reservoir engineers, geoscientists, planning engineers and financial analysts. As part of this
process, all reserve volumes are estimated by a forecast of production rates, operating costs and capital expenditures. Price
differentials between benchmark prices and prices realized and specifics of each operating agreement are then used to estimate the
net reserves. Production rate forecasts are derived by a number of methods, including estimates from decline curve analyses,
material balance calculations that take into account the volume of substances replacing the volumes produced and associated
reservoir pressure changes, or computer simulation of the reservoir performance. Operating costs and capital costs are forecast
based on past experience combined with expectations of future cost for the specific reservoirs. In 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.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>A senior
corporate officer of Occidental is responsible for the internal audit and review of its oil and gas reserves data. In addition, a
Corporate Reserves Review Committee (the Reserves Committee) has been established, consisting of senior corporate officers, to
monitor and review Occidental's oil and gas reserves. The Reserves Committee reports to the Audit Committee of Occidental's Board of
Directors periodically throughout the year. Occidental has retained Ryder Scott Company, L.P. (Ryder Scott), independent petroleum
engineering consultants, to review its annual oil and gas reserve estimation processes since 2004.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Again in
2006, Ryder Scott has compared Occidental&#146;s methods and procedures for estimating oil and gas reserves to generally accepted
industry standards and has reviewed certain data, methods and procedures used in estimating reserves volumes, the economic
evaluations and reserves classifications. Ryder Scott reviewed the specific application of such methods and procedures for a
selection of oil and gas fields considered to be a valid representation of Occidental&#146;s total reserves portfolio. In 2006,
Ryder Scott reviewed 10.5 percent of Occidental&#146;s oil and gas reserves. Since being engaged in 2004, Ryder Scott has reviewed
Occidental&#146;s reserve estimation methods and procedures for approximately 49 percent of Occidental&#146;s oil and gas
reserves.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Based on
this review, including the data, technical processes and interpretations presented by Occidental, Ryder Scott has concluded that the
methodologies used by Occidental in preparing the relevant estimates generally comply with current SEC standards. Ryder Scott has
not been engaged to render an opinion as to the reserves volumes reported by Occidental.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Estimates
of proven reserves are collected in a database and changes in this database are reviewed by engineering personnel to ensure
accuracy. Finally, reserve volumes and changes are reviewed and approved by Occidental's senior management.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>In May
2006, Ecuador terminated Occidental&#146;s contract for the operation of Block 15, which comprised all of its oil-producing
operations in the country, and seized Occidental&#146;s Block 15 assets. As a result of this seizure, Occidental has classified its
Block 15 operations as discontinued operations on a retrospective basis and excluded them from all tables in the Supplemental Oil
and Gas Information section.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>80</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Oil
Reserves</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions of barrels</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(b)</sup></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0in;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PROVED
      DEVELOPED AND UNDEVELOPED RESERVES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2003</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,500</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>326</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,884</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>48</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>16</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>72</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>88</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>29</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>39</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(93</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(33</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(142</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(9</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2004</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,494</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>67</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>322</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,889</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>29</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(34</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(18</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>98</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>107</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>108</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>112</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(8</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(8</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(92</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(13</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(35</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(142</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(7</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2005</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,636</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>50</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>296</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,986</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>45</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(28</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>39</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(7</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>71</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>118</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>98</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>152</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>254</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(98</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(26</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(40</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(166</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(7</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Balance at December 31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,678</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>226</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>327</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,234</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.4pt;margin-bottom:0in;line-height:108%'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PROVED
      DEVELOPED RESERVES</b> <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2003</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,262</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>227</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,543</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>35</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,260</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>65</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>208</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,539</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,336</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>174</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,558</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>December
      31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,396</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>140</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>249</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,788</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>23</b></font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>All
      Middle East/North Africa amounts are related to PSCs, and do not include amounts related to taxes owed by Occidental but paid
      by governmental entities on its behalf.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      reserves applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in
      a Colombian affiliate.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Approximately
      four percent of the proved developed reserves at December 31, 2006 are nonproducing. Over half of these reserves are located
      in Latin America and the remainder is in the United States and Middle East/North Africa. Plans are to begin producing these
      reserves in 2007.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>81</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Gas
Reserves</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In billions of cubic feet</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0in;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PROVED
      DEVELOPED AND UNDEVELOPED RESERVES</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" style='border-bottom:black 1.0pt solid'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;</font></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2003</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,826</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>654</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>105</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,585</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>94</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>134</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>241</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(9</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>180</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>185</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>181</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>191</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%">
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(186</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(20</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(27</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(233</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2004</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,101</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>768</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>106</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,975</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>53</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(32</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>30</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>129</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>131</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>96</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>331</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>427</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>164</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>164</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(202</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(16</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(28</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(246</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(6</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'><b>Balance
      at December 31, 2005</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,338</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,051</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>89</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,478</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of previous estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(132</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>45</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>59</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(28</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Improved
      recovery</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>123</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>136</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions
      and discoveries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>58</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>59</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>274</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>161</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>435</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      of proved reserves</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(217</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(12</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(11</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(28</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(268</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(8</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>Balance
      at December 31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,442</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>194</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,106</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>68</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,810</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>PROVED
      DEVELOPED RESERVES</b> <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2003</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,618</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>91</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>94</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,803</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,644</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>100</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>95</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,839</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:9pt'>December
      31, 2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,846</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>73</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>80</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,999</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:13.5pt;text-align:left;margin-top:2.4pt;margin-bottom:0in'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>December
      31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,953</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>137</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>560</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>68</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,718</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:2.4pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>All
      Middle East/North Africa amounts are related to PSCs, and do not include amounts related to taxes owed by Occidental but paid
      by governmental entities on its behalf.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Approximately
      twenty-two percent of the proved developed reserves at December 31, 2006 are nonproducing. Plans are to begin producing these
      reserves in 2007.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>82</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>STANDARDIZED
MEASURE, INCLUDING YEAR-TO-YEAR CHANGES THEREIN, OF DISCOUNTED FUTURE NET CASH FLOWS</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>For
purposes of the following disclosures, estimates were made of quantities of proved reserves and the periods during which they are
expected to be produced. Future cash flows were computed by applying year-end prices to Occidental&#146;s share of estimated annual
future production from proved oil and gas reserves, net of royalties. Future development and production costs were computed by
applying year-end costs to be incurred in producing and further developing the proved reserves. Future income tax expenses were
computed by applying, generally, year-end statutory tax rates (adjusted for permanent differences, tax credits, allowances and
foreign income repatriation considerations) to the estimated net future pre-tax cash flows. The discount was computed by application
of a 10-percent discount factor. The calculations assumed the continuation of existing economic, operating and contractual
conditions at each of December 31, 2006, 2005 and 2004. However, such arbitrary assumptions have not necessarily proven to be the
case in the past. Other assumptions of equal validity would give rise to substantially different results.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
year-end prices used to calculate future cash flows vary by producing area and market conditions. For the 2006, 2005 and 2004
disclosures, the West Texas Intermediate oil prices used were $61.05 per barrel, $61.04 per barrel and $43.45 per barrel,
respectively. The Henry Hub gas prices used for the 2006, 2005 and 2004 disclosures were $5.64/MMBtu, $10.08/MMBtu and $6.03/MMBtu,
respectively.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Standardized
Measure of Discounted Future Net Cash Flows</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" style='border-bottom:double black 2.25pt'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><br><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>AT
      DECEMBER 31, 2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      cash flows</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>102,873</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9,279</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,436</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>346</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>130,934</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,139</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      costs</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:29pt;text-indent:-6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(49,797</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,002</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,676</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(129</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(57,604</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,301</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:23pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,274</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,213</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,359</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(13</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(6,859</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(85</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows before income taxes</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>48,802</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5,064</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12,401</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>204</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>66,471</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(247</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      income tax expense</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(16,451</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,778</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(325</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(99</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(18,653</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>32,351</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,286</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12,076</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>105</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>47,818</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(203</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Ten
      percent discount factor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(17,579</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1,178</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(4,441</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(10</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(23,208</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(54</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Standardized
      measure</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14,772</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,108</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,635</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>95</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,610</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(257</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>AT
      DECEMBER 31, 2005</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      cash flows</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>105,307</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,675</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,574</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>441</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>123,997</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,695</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      costs</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:29pt;text-indent:-6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(43,772</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(830</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,559</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(111</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(48,272</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,317</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:23pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,224</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(86</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,096</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(23</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4,429</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(118</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows before income taxes</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>58,311</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,759</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,919</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>307</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>71,296</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>260</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      income tax expense</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(19,509</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(880</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(102</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(20,491</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(8</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>38,802</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>879</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,919</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>205</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50,805</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>252</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Ten
      percent discount factor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(21,608</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(223</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4,463</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(36</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(26,330</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(53</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Standardized
      measure</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17,194</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>656</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6,456</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>169</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24,475</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:double black 2.25pt'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>199</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>AT
      DECEMBER 31, 2004</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      cash flows</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>67,273</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,478</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12,042</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>438</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>82,231</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>959</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      costs</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:29pt;text-indent:-6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Production
      costs and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(28,518</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,099</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,236</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(147</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(33,000</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(633</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:23pt;text-align:left;margin-top:0pt;margin-bottom: 0in'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(2,214</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(63</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,421</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(30</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,728</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(55</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows before income taxes</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36,541</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,316</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,385</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>261</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>45,503</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>271</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Future
      income tax expense</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(11,751</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(547</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(89</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(12,387</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>40</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Future
      net cash flows</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24,790</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>769</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7,385</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>172</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33,116</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>311</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="38%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Ten
      percent discount factor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(14,104</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(192</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,389</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(27</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(17,712</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(59</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="38%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Standardized
      measure</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10,686</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>577</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,996</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>145</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,404</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>252</font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      future net cash flows applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority
      interests in a Colombian affiliate.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      dismantlement and abandonment costs.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>83</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Changes
in the Standardized Measure of Discounted Future
  <br>Net Cash Flows From Proved Reserve Quantities</b></font>
  <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="69%" style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>For the
      years ended December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Beginning
      of year</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,475</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,404</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12,160</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Sales
      and transfers of oil and gas produced, net of production costs and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(8,758</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(6,804</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(5,007</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      change in prices received per barrel, net of production costs and other operating expenses</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(3,511</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13,373</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5,796</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Extensions,
      discoveries and improved recovery, net of future production and development costs</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,723</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,024</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,763</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Change
      in estimated future development costs</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,596</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,568</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(960</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Revisions
      of quantity estimates</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,285</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,129</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>142</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development
      costs incurred during the period</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,465</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,824</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,332</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Accretion
      of discount</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,232</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,983</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,579</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      change in income taxes</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>357</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(3,950</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(795</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Purchases
      and sales of reserves in place, net</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,186</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2,041</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>565</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Changes
      in production rates and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>752</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>277</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(1,171</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="69%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>Net
      change</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>135</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9,071</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3,244</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="69%" valign=bottom style='border-bottom: black 2.25pt double'>
      <p style='text-align:justify;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><b>End
      of year</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>24,610</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24,475</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>15,404</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Average
Sales Prices and Average Production Costs of Oil and Gas</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, for each of the three years in the period ended December 31, 2006, Occidental&#146;s approximate average
sales prices and average production costs of oil and gas. Production costs are the costs incurred in lifting the oil and gas to the
surface and include gathering, treating, primary processing, field storage, property taxes and insurance on proved properties, but
do not include depreciation, depletion and amortization, royalties, income taxes, interest, general and administrative and other
expenses.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="32%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(c)</sup></font></p></td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/bbl.)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>58.13</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>52.40</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>61.58</b></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#00009D"><font face="arial narrow,arial" style='font-size:9pt'><sup>(d)</sup></font></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56.70</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>57.95</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34.25</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/Mcf)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>6.51</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.00</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.97</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.94</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.66</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.14</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Average
      oil and gas production cost ($/bbl.) <sup>(b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12.83</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>10.02</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.22</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.76</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11.23</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15.40</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/bbl.)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50.21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51.18</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>49.88</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(d)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>46.84</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>50.19</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.16</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/Mcf)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.96</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.16</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Average
      oil and gas production cost ($/bbl.) <sup>(b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10.44</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.69</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.54</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.27</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.81</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19.76</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/bbl.)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37.72</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.85</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34.88</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(d)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>33.13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.79</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>23.83</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas&nbsp;&nbsp;&nbsp;&#151;&nbsp;&nbsp;&nbsp;&nbsp;Average
      sales price ($/Mcf)</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.35</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.97</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.25</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.56</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="32%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='margin-left:15.0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Average
      oil and gas production cost ($/bbl.) <sup>(b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.18</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.13</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.83</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.21</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7.04</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>12.11</font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Sales
      prices include royalties with respect to certain of Occidental&#146;s interests.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      gas volumes have been converted to equivalent barrels based on energy content of six Mcf of gas to one barrel of
      oil.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      prices and costs applicable to equity investees in Russia (sold in January 2007) and Yemen.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Excludes
      taxes owed by Occidental but paid by governmental entities on its behalf.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>84</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Net
Productive and Dry &#151; Exploratory and Development Wells Completed</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, for each of the three years in the period ended December 31, 2006, Occidental&#146;s net productive and
dry&#150;exploratory and development wells completed.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="4%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="14%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td></tr>
  <tr>
    <td colspan="3" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.5</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>11.0</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.4</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.2</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14.1</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>437.9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>173.9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>75.6</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.5</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>688.9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(1.4</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.1</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.8</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>124.7</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1.5</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>126.2</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dry</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5.0</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.4</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2.3</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.3</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>8.0</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.4</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21.5</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4.0</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3.7</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>0.5</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29.7</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td colspan="3" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.6</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.2</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(0.3</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>374.4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>20.2</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>102.6</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.3</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>499.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(0.1</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>104.3</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.8</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>105.1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dry</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.8</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.9</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.2</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(0.4</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="7%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13.1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>4.9</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td colspan="3" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.8</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>345.9</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>66.4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>425.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5.0</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.4</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3.1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.6</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.2</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>41.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Dry</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="14%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.6</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.1</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2.5</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6.7</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="7%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="14%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Development</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>9.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1.0</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>0.3</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>10.3</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(0.1</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="98%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      amounts applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a
      Colombian affiliate.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Productive
Oil and Gas Wells</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, as of December 31, 2006, Occidental&#146;s productive oil and gas wells (both producing and capable of
production). The numbers in parentheses indicate the number of wells with multiple completions.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="4%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td  colspan="14" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Wells at
      December 31, 2006</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(c)</sup></font></p></td></tr>
  <tr>
    <td width="4%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oil</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      <sup>(a)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>21,698</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(675)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,640</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,283)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,201</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(31)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>58</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25,597</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,989)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>442</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(50)</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="4%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="12%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      <sup>(b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15,796</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(479)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,222</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,031)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>582</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(24)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>26</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18,626</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2,534)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>195</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(25)</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="4%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gas</font></p></td>
    <td width="4%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      <sup>(a)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,181</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(208)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>190</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(161)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>37</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,435</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(371)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="5%" valign=bottom>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="4%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="4%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:justify;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      <sup>(b)</sup></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,712</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(149)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>188</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(161)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>22</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(2)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2,937</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(312)</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="5%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(&#151;)</b></font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The total
      number of wells in which interests are owned.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>The sum
      of fractional interests.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      amounts applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a
      Colombian affiliate.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>85</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Participation
in Exploratory and Development Wells Being Drilled</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, as of December 31, 2006, Occidental&#146;s participation in exploratory and development wells being
drilled.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="11%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Wells at
      December 31, 2006</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(a)</sup></font></p></td></tr>
  <tr>
    <td colspan="3" valign=bottom>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Exploratory
      and development wells</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="11%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>56</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>41</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>106</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="11%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>39</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>63</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      amounts applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a
      Colombian affiliate.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>At
December 31, 2006, Occidental was participating in 107 pressure maintenance projects in the United States, 24 in Latin America, 29
in the Middle East/North Africa and 7 in the Other Eastern Hemisphere.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Oil
and Gas Acreage</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, as of December 31, 2006, Occidental&#146;s holdings of developed and undeveloped oil and gas
acreage.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="11%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td colspan="9" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Consolidated
      Subsidiaries</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td colspan="3" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Thousands of
      acres at
        <br>December 31, 2006</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
        <br>States</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
        <br>America</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
        <br>East/
        <br>North Africa</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Eastern
        <br>Hemisphere</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total</font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
        <br>Interests</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><sup>(e)</sup></font></p></td></tr>
  <tr>
    <td width="11%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Developed
      <sup>(a)</sup></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,597</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>576</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>936</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,183</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7,292</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>114</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="11%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      <sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,097</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>498</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>449</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>269</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4,313</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>35</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="11%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Undeveloped
      <sup>(d)</sup></font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Gross
      <sup>(b)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,687</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25,333</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34,695</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>9,278</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>70,993</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5</b></font></p></td>
    <td width="2%">&nbsp;</td></tr>
  <tr>
    <td width="11%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="3%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="12%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Net
      <sup>(c)</sup></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1,118</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>14,512</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>25,027</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3,681</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>44,338</b></font></p></td>
    <td width="4%">&nbsp;</td>
    <td width="8%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(444</b></font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Acres
      spaced or assigned to productive wells.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Total
      acres in which interests are held.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Sum of
      the fractional interests owned based on working interests, or interests under PSCs and other economic
      arrangements.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Acres on
      which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and
      gas, regardless of whether the acreage contains proved reserves.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(e)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      amounts applicable to equity investees in Russia (sold in January 2007) and Yemen, partially offset by minority interests in a
      Colombian affiliate.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>86</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>Oil
and Natural Gas Production Per Day</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>The
following table sets forth, for each of the three years in the period ended December 31, 2006, Occidental&#146;s oil, NGLs and
natural gas production per day.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="66%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:5.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>United
      States</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Crude
      oil and liquids (MBBL)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>California</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>86</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>76</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>78</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Permian</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>167</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>161</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>154</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Horn
      Mountain</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>12</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>19</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Hugoton
      and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>3</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>TOTAL</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>268</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>253</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>254</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>California</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>256</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>242</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>237</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Hugoton
      and other</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>138</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>133</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>127</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Permian</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>194</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>170</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>130</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Horn
      Mountain</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>7</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>TOTAL</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>595</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>553</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>507</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Latin
      America</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Argentina</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>33</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Colombia</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>38</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>TOTAL</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>71</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>36</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>37</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Argentina</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Bolivia</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>TOTAL</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>34</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Middle
      East/North Africa</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oman</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>18</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>17</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>13</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Qatar</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>43</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>42</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>45</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Yemen</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>29</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>32</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Libya</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>23</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>TOTAL</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>113</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>95</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>90</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Oman</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>30</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>44</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>55</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Other
      Eastern Hemisphere</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Crude
      oil (MBBL)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pakistan</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>4</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>5</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>7</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:15.0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Natural
      Gas (MMCF)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Pakistan</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>76</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>77</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>75</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'><u>Barrels
      of Oil Equivalent (MBOE)</u> <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Subtotal
      consolidated subsidiaries</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>578</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>501</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>494</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Colombia
      &#150; minority interest</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(5</b></font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4</font></p></td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(4</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Russia
      &#150; Occidental net interest <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>28</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>29</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom>
      <p style='text-indent:28.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Yemen
      &#150; Occidental net interest</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>1</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="66%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Total
      worldwide production <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>601</b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>526</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="9%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>520</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Natural
      gas volumes have been converted to equivalent BOE based on energy content of 6,000 cubic feet (one thousand cubic feet is
      referred to as a &#147;Mcf&#148;) of gas to one barrel of oil.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Sold in
      January 2007.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Occidental
      has classified its Ecuador Block 15 operations as discontinued operations on a retrospective application basis and excluded
      them from this table. Excluded production from the Block 15 operations averaged 43,000 BOE per day for the first five months
      of 2006, 42,000 BOE per day in 2005 and 46,000 BOE per day in 2004.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>87</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="97%">
  <tr>
    <td width="70%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" color="#00009D" style='font-size:15pt'><b>Schedule
      II &#150; Valuation and Qualifying Accounts</b></font>
        <br><font face="arial narrow,arial" style='font-size:8pt'>In millions</font></p></td>
    <td width="30%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Occidental
      Petroleum Corporation
        <br>and Subsidiaries</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="42%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="5" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Additions</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
        <br>Beginning
        <br>of Period</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Charged to
        <br>Costs and
        <br>Expenses</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Charged to
        <br>Other
        <br>Accounts</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Deductions</font></p></td>
    <td width="3%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Balance at
        <br>End of
        <br>Period</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>2006</b></font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Allowance
      for doubtful accounts</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>27</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&#151;</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>5</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(17</b></font></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>15</b></font></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Environmental</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>418</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>48</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>17</b></font></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(a)</sup></b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(71</b></font></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)<sup>(b)</sup></b></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>412</b></font></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      and other taxes, litigation and other reserves</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>227</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>20</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>100</b></font></td>
    <td width="3%" valign=bottom style='border-top:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(c)</sup></b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(24</b></font></td>
    <td width="3%" valign=bottom style='border-top:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>323</b></font></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>645</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>68</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>117</b></font></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>(95</b></font></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>)</b></font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>$</b></font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>735</b></font></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" color="#00009D" style='font-size:9pt'><b>&nbsp;<sup>(d)</sup></b></font></p></td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2005</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Allowance
      for doubtful accounts</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Environmental</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>375</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>63</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>51</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(a)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(71</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)<sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>418</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      and other taxes, litigation and other reserves</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,061</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>43</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>11</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(888</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)<sup>(e)</sup></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>227</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,436</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>106</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>62</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(959</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>645</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='text-align:left;margin-top:5pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>2004</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="7%">&nbsp;</td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Allowance
      for doubtful accounts</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>24</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>3</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>27</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Environmental</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>372</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>60</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(63</font></p></td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)<sup>(b)</sup></font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>375</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" valign=bottom>
      <p style='margin-left:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>Foreign
      and other taxes, litigation and other reserves</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,153</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>34</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&#151;</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(126</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)<sup>(f)</sup></font></p></td>
    <td width="1%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="7%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,061</font></p></td>
    <td width="3%">&nbsp;</td></tr>
  <tr>
    <td width="42%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,525</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>94</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>6</font></p></td>
    <td width="3%">&nbsp;</td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(189</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>)</font></p></td>
    <td width="1%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>$</font></p></td>
    <td width="7%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:12pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>1,436</font></p></td>
    <td width="3%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>&nbsp;<sup>(d)</sup></font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="97%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:3pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Primarily
      represents acquisitions.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Primarily
      represents payments.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Primarily
      represents acquisitions and balance sheet reclassifications.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(d)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Of these
      amounts, $139 million, $138 million and $154 million in 2006, 2005 and 2004, respectively, are classified as
      current.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(e)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Includes
      reversal of tax reserves of $874 million.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>(f)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:8pt'>Primarily
      represents balance sheet reclassifications.</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>88</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
9&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Not
applicable.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
9A&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES</b></font>
  <br><font face="arial narrow,arial" color="#00009D" style='font-size:11pt'><b>DISCLOSURE CONTROLS AND PROCEDURES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental's
Chief Executive Officer and Chief Financial Officer supervised and participated in Occidental's evaluation of its disclosure
controls and procedures as of the end of the period covered by this report. Disclosure controls and procedures are controls and
procedures designed to ensure that information required to be disclosed in Occidental's periodic reports filed or submitted under
the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms. Based upon that evaluation, Occidental's Chief Executive Officer and
Chief Financial Officer concluded that Occidental's disclosure controls and procedures were effective as of December 31,
2006.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>There has
been no change in Occidental's internal control over financial reporting during the fourth quarter of 2006 that has materially
affected, or is reasonably likely to materially affect, Occidental's internal control over financial reporting. Management&#146;s
Annual Assessment of and Report on Occidental&#146;s Internal Control over Financial Reporting and the Report of Independent
Registered Public Accounting Firm on Internal Control over Financial Reporting, set forth in Item 8, are incorporated by reference
herein.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:13pt'><b>Part
III</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM 10&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE
  OFFICERS AND CORPORATE GOVERNANCE</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental
has adopted a Code of Business Conduct (Code). The Code applies to the Chief Executive Officer, Chief Financial Officer, Chief
Accounting Officer and persons performing similar functions (Key Personnel). The Code also applies to Occidental's directors, its
employees and the employees of entities it controls. The Code is posted on the Occidental website www.oxy.com. Occidental will
satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, any provision of the Code
with respect to its Key Personnel or directors by disclosing the nature of that amendment or waiver on its website.</font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This item
incorporates by reference the information regarding Occidental's directors appearing under the caption "Election of Directors" and
&#147;Nominations for Directors for Term Expiring in 2008&#148; in Occidental's definitive proxy statement filed in connection with
its May 4, 2007, Annual Meeting of Stockholders (2007 Proxy Statement). See also the list of Occidental's executive officers and
significant employees and related information under "Executive Officers" in Part I of this report.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
11&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This item
incorporates by reference the information appearing under the captions "Executive Compensation" and "Election of Directors &#151;
Information Regarding the Board of Directors and Its Committees" in the 2007 Proxy Statement.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
12&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This item
incorporates by reference the information with respect to security ownership appearing under the caption "Security Ownership of
Certain Beneficial Owners and Management" in the 2007 Proxy Statement.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
13&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This item
incorporates by reference the information appearing under the caption &#147;Election of Directors &#150; Information Regarding the
Board of Directors and its Committees &#150; Independence&#148; in the 2007 Proxy Statement.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM
14&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>This item
incorporates by reference the information with respect to accountant fees and services appearing under the sub-captions "Audit and
Other Fees" and "Report of the Audit Committee" in the 2007 Proxy Statement.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>89</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" color="#00009D" style='font-size:13pt'><b>Part
IV</b></font>
  <br><font face="times new roman" color="#00009D" style='font-size:12pt'><b>ITEM 15&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS AND FINANCIAL
  STATEMENT SCHEDULES</b></font></p>

<p style='margin-top:6pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'><b>(a) (1) and (2).
Financial Statements and Financial Statement Schedule</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Reference is made to the
Index to Financial Statements and Related Information under Item 8 in Part II hereof, where these documents are listed.</font></p>

<p style='margin-top:6pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'><b>(a) (3).
Exhibits</b></font></p>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>2.1*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Agreement and Plan of
      Merger among Occidental Petroleum Corporation, Occidental Transaction 1, LLC and Vintage Petroleum, Inc., dated as of October
      13, 2005. (Disclosure schedules to this agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K) (filed as
      Exhibit 2.1 to Occidental's Current Report on Form 8-K dated October 13, 2005 (filed October 17, 2005), File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>3.(i)*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Restated Certificate
      of Incorporation of Occidental, dated November 12, 1999 (filed as Exhibit 3.(i) to the Annual Report on Form 10-K of
      Occidental for the fiscal year ended December 31, 1999, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>3.(i)(a)*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Certificate of Change
      of Location of Registered Office and of Registered Agent, dated July 6, 2001 (filed as Exhibit 3.1(i) to the Registration
      Statement on Form S-3 of Occidental, File No. 333-82246).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>3.(i)(b)</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Certificate of
      Amendment of Restated Certificate of Incorporation of Occidental Petroleum Corporation, dated May 5,
      2006.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>3.(ii)*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Bylaws of Occidental,
      as amended through July 20, 2006 (filed as Exhibit 3.(ii) to the Quarterly Report on Form 10-Q of Occidental for the fiscal
      quarter ended June 30, 2006, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>4.1*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Amended and Restated Five-Year Credit Agreement, dated as of September 27, 2006, among Occidental; J.P. Morgan
      Securities Inc. and Citigroup Global Markets Inc., as Co-Arrangers and Joint Bookrunners; JPMorgan Chase Bank, N.A. and
      Citibank, N.A., as Co-Syndication Agents, BNP Paribas, Bank of America, N.A., Barclays Bank PLC and The Royal Bank of Scotland
      plc, as Co-Documentation Agents, The Bank of Nova Scotia, as Administrative Agent (filed as Exhibit 4.1 to the Quarterly
      Report on Form 10-Q of Occidental for the fiscal quarter ended September 30, 2006, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>4.2*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Indenture (Senior Debt
      Securities), dated as of April 1, 1998, between Occidental and The Bank of New York, as Trustee (filed as Exhibit 4 to the
      Registration Statement on Form S-3 of Occidental, File No. 333-52053).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>4.3*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Specimen certificate
      for shares of Common Stock (filed as Exhibit 4.9 to the Registration Statement on Form S-3 of Occidental, File No.
      333-82246).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>4.4</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Instruments defining
      the rights of holders of other long-term debt of Occidental and its subsidiaries are not being filed since the total amount of
      securities authorized under each of such instruments does not exceed 10 percent of the total assets of Occidental and its
      subsidiaries on a consolidated basis. Occidental agrees to furnish a copy of any such instrument to the Commission upon
      request.</font></p></td></tr></table>

<p style='margin-top:2pt;margin-bottom:0pt;text-indent:0.21in;text-align:justify'><font face="arial" style='font-size:9pt'>All of
the Exhibits numbered 10.1 to 10.70 are management contracts and compensatory plans required to be identified specifically as
responsive to Item 601(b)(10)(iii)(A) of Regulation S-K pursuant to Item 15(c) of Form 10-K.</font></p>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.1*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended and Restated
      Employment Agreement, dated as of February 10, 2005, between Occidental and Dr. Ray R. Irani (filed as Exhibit 10.1 to the
      Annual Report on Form 10-K of Occidental for the fiscal year ended December 31, 2004, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.2*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Employment Agreement,
      dated as of January 13, 2005, between Occidental and Stephen I. Chazen (filed as Exhibit 10.5 to the Annual Report on Form
      10-K of Occidental for the fiscal year ended December 31, 2004, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.3*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Employment Agreement,
      dated May 19, 2003, between Occidental and Donald P. de Brier (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q of
      Occidental for the quarterly period ended June 30, 2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.4*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of
      Indemnification Agreement between Occidental and 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).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.5*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Split Dollar Life Insurance Program and Related Documents (filed as Exhibit 10.2 to the Quarterly Report on Form
      10-Q of Occidental for the quarterly period ended September 30, 1994, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.6*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Split Dollar Life
      Insurance Agreement, dated January 24, 2002, by and between Occidental and Donald P. de&nbsp;Brier (filed as Exhibit 10.1 to
      the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended March 31, 2002, File No.
      1-9210).</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>_________________________</font></p>

<p style='margin-top:2pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>* Incorporated herein by
reference</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>90</font></p>

<p style='page-break-before:always'></p>

<page>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.7*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Insured Medical Plan, as amended and restated effective April 29, 1994, amending and restating the Occidental Petroleum
      Corporation Executive Medical Plan (as amended and restated effective April 1, 1993) (filed as Exhibit 10 to the Quarterly
      Report on Form 10-Q of Occidental for the quarterly period ending March 31, 1994, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.8*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Modified Deferred Compensation Plan (filed as Exhibit 10.12 to the Current Report on Form 8-K of Occidental dated
      October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.9</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amendment No. 1 to
      Occidental Petroleum Corporation Modified Deferred Compensation Plan, effective as of January 1, 2007.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.10*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Senior Executive Supplemental Life Insurance Plan (effective as of January 1, 1986, as amended and restated
      effective as of January 1, 1996) (filed as Exhibit 10.25 to the Annual Report on Form 10-K of Occidental for the fiscal year
      ended December 31, 1995, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.11*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Senior Executive Survivor Benefit Plan (effective as of January 1, 1986, as amended and restated effective as of
      January 1, 1996) (filed as Exhibit 10.27 to the Annual Report on Form 10-K of Occidental for the fiscal year ended December
      31, 1995, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.12*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amendment No. 1 to
      Occidental Petroleum Corporation Senior Executive Survivor Benefit Plan, dated February 28, 2002 (filed as Exhibit 10.2 to the
      Quarterly Report on Form 10-Q of Occidental for the quarterly period ended March 31, 2002, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.13*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation 1996 Restricted Stock Plan for Non-Employee Directors, amended as of February 10, 2005 (filed as Exhibit 10.2 to
      the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended March 31, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.14*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Restricted
      Stock Option Assignment under Occidental Petroleum Corporation 1996 Restricted Stock Plan for Non-Employee Directors (filed as
      Exhibit 99.2 to the Registration Statement on Form S-8 of Occidental, File No. 333-02901).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.15*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Restricted
      Stock Agreement under Occidental Petroleum Corporation 1996 Restricted Stock Plan for Non-Employee Directors (filed as Exhibit
      10.3 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended March 31, 2003, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.16*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Supplemental Retirement Plan, Amended and Restated Effective as of January 1, 1999, reflecting amendments
      effective through March 1, 2001 (filed as Exhibit 10.3 to the Quarterly Report on Form 10-Q of Occidental for the quarterly
      period ended March 31, 2001, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.17*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amendment Number 2 to
      the Occidental Petroleum Corporation Supplemental Retirement Plan (As Amended and Restated Effective January&nbsp;1,&nbsp;1999
      Reflecting Amendments Effective through March 1, 2001) (filed as Exhibit 10.1 to the Current Report on Form 8-K of Occidental
      dated December 7, 2004 (date of earliest event reported), filed December 8, 2004, File No. 1-9210.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.18*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Summary of Material
      Terms and Conditions of Supplemental Retirement Allocations (effective as of January 1, 2005) (filed as Exhibit 10.39 to the
      Current Report on Form 8-K of Occidental dated April 6, 2005 (date of earliest event reported), filed April 6, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.19*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation 2001 Incentive Compensation Plan (as amended through September 12, 2002) (filed as Exhibit 10.2 to the Quarterly
      Report on Form 10-Q of Occidental for the quarterly period ended September 30, 2002, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.20*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Incentive
      Stock Option Agreement under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (filed as Exhibit 10.1 to the
      Quarterly Report on Form 10-Q of Occidental for the quarterly period ended September 30, 2001, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.21*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Nonqualified
      Stock Option Agreement under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (filed as Exhibit 10.2 to the
      Quarterly Report on Form 10-Q of Occidental for the quarterly period ended September 30, 2001, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.22*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Incentive
      Stock Option Agreement under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (July 2002 version) (filed as
      Exhibit 10.4 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2002, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.23*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Nonqualified
      Stock Option Agreement under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (July 2002 version) (filed as
      Exhibit 10.5 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2002, File No.
      1-9210).</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>_________________________</font></p>

<p style='margin-top:2pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>* Incorporated herein by reference</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>91</font></p>

<p style='page-break-before:always'></p>

<page>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.24*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Restricted
      Common Share Agreement (with mandatory deferred issuance of shares) under Occidental Petroleum Corporation 2001 Incentive
      Compensation Plan (December 2002 version) (filed as Exhibit 10.47 to the Annual Report on Form 10-K of Occidental for the
      fiscal year ended December 31, 2002, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.25*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the 2002 Terms and Conditions (filed as Exhibit 10.2 to the Current Report on Form 8-K of Occidental
      dated October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.26*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2003 Grant (Effective June 20, 2005) (Corporate) (filed as
      Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.27*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2003 Grant (Effective June 20, 2005) (Chemicals) (filed as
      Exhibit 10.5 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.28*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      for Incentive Stock Option Award under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (July 2003 version)
      (filed as Exhibit 10.3 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2003, File
      No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.29*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      for Nonqualified Stock Option Award under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (July 2003
      version) (filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30,
      2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.30*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award (with mandatory deferred issuance of shares) under Occidental Petroleum Corporation 2001
      Incentive Compensation Plan (July 2003 version) (filed as Exhibit 10.5 to the Quarterly Report on Form 10-Q of Occidental for
      the quarterly period ended June 30, 2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.31*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award (with mandatory deferred issuance of shares) under Occidental Petroleum Corporation 2001
      Incentive Compensation Plan (December 2003 version) (filed as Exhibit 10.45 to the Annual Report on Form 10-K of Occidental
      for the fiscal year ended December 31, 2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.32*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the 2003 Terms and Conditions (filed as Exhibit 10.3 to the Current Report on Form 8-K of Occidental
      dated October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.33*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2004 Grant (Effective June 20, 2005) (Corporate) (filed as
      Exhibit 10.6 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.34*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2004 Grant (Effective June 20, 2005) (Chemicals) (filed as
      Exhibit 10.7 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.35*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2004 Grant (Effective June 20, 2005) (Oil and Gas) (filed as
      Exhibit 10.8 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.36*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Stock Appreciation Rights Award under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (filed as Exhibit
      10.3 to the Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended June 30, 2004, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.37*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award (without deferred issuance of shares) under Occidental Petroleum Corporation 2001 Incentive
      Compensation Plan (filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended June
      30, 2004, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.38*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the July 2004 Terms and Conditions (filed as Exhibit 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).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.39*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award under Occidental Petroleum Corporation 2001 Incentive Compensation Plan (December 2004 version)
      (filed as Exhibit 10.57 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2004, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.40*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the 2004 Terms and Conditions (filed as Exhibit 10.4 to the Current Report on Form 8-K of Occidental
      dated October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>_________________________</font></p>

<p style='margin-top:2pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>* Incorporated herein by reference</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>92</font></p>

<p style='page-break-before:always'></p>

<page>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.41*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2005 Grant (Effective June 20, 2005) (Corporate) (filed as
      Exhibit 10.9 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.42*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2005 Grant (Effective June 20, 2005) (Chemicals) (filed as
      Exhibit 10.10 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.43*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amended And Restated
      Performance-Based Stock Award Terms And Conditions For January 1, 2005 Grant (Effective June 20, 2005) (Oil and Gas) (filed as
      Exhibit 10.11 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.44*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation 2005 Long-Term Incentive Plan (filed as Exhibit 99.1 to Occidental's Registration Statement on Form S-8, File No.
      333-124732).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.45*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Stock Appreciation Rights Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit
      10.12 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.46*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit 10.13 to
      the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2005, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.47*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award (mandatory deferred issuance of shares) under Occidental Petroleum Corporation 2005 Long-Term
      Incentive Plan (filed as Exhibit 10.14 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June
      30, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.48*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the July 2005 Terms and Conditions (filed as Exhibit 10.7 to the Current Report on Form 8-K of
      Occidental dated October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.49*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Agreement to Amend
      Outstanding Option Awards, dated October 26, 2005 (filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q of Occidental
      for the quarterly period ended September 30, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.50*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award (mandatory deferred issuance of shares) under Occidental Petroleum Corporation 2005 Long-Term
      Incentive Plan (December 2005 version) (filed as Exhibit 10.62 to the Annual Report on Form 10-K of Occidental for the fiscal
      year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.51*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global Restricted
      Stock Unit Amendment to the 2005 Terms and Conditions (filed as Exhibit 10.5 to the Current Report on Form 8-K of Occidental
      dated October 12, 2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.52*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award (deferred issuance of shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
      Plan (January 2006 version &#150; Corporate) (filed as Exhibit 10.63 to the Annual Report on Form 10-K of Occidental for the
      fiscal year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.53*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award (deferred issuance of shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
      Plan (January 2006 version &#150; Oil and Gas) (filed as Exhibit 10.64 to the Annual Report on Form 10-K of Occidental for the
      fiscal year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.54*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award (deferred issuance of shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
      Plan (January 2006 version &#150; Chemicals) (filed as Exhibit 10.65 to the Annual Report on Form 10-K of Occidental for the
      fiscal year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.55*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Target Performance-Based Restricted Share Unit Award Under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan
      (filed as Exhibit 10.1 to the Current Report on Form 8-K of Occidental dated July 19, 2006 (date of earliest event reported),
      File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.56*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Stock Appreciation Rights (SARs) under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (July 2006 version)
      (filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2006, File
      No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.57*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Restricted Share Unit Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (July 2006 version) (filed
      as Exhibit 10.5 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended June 30, 2006, File No.
      1-9210).</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>_________________________</font></p>

<p style='margin-top:2pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>* Incorporated herein by reference</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>93</font></p>

<p style='page-break-before:always'></p>

<page>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.58*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Global
      Performance-Based Stock Amendment (filed as Exhibit 10.8 to the Current Report on Form 8-K of Occidental dated October 12,
      2006 (date of earliest event reported), File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.59*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation 2005 Deferred Stock Program (Restatement Effective as of January 1, 2005) (filed as Exhibit 10.68 to the Annual
      Report on Form 10-K of Occidental for the fiscal year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.60*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amendment to
      Occidental Petroleum Corporation 2005 Deferred Stock Program (filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q for
      the fiscal quarter ended June 30, 2006, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.61*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Amendment No. 2 to 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).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.62*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Petroleum
      Corporation Executive Incentive Compensation Plan (filed as Exhibit 10.69 to the Annual Report on Form 10-K of Occidental for
      the fiscal year ended December 31, 2005, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.63*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Description of
      financial counseling program (filed as Exhibit 10.50 to the Annual Report on Form 10-K of Occidental for the fiscal year ended
      December 31, 2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.64*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Description of group
      excess liability insurance program (filed as Exhibit 10.51 to the Annual Report on Form 10-K of Occidental for the fiscal year
      ended December 31, 2003, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.65*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Executive Stock
      Ownership Guidelines (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31,
      2005, File No. 1-9210)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.66*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Form of Restricted
      Stock Award for Non-Employee Directors under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit
      10.1 to the Current Report on Form 8-K of Occidental dated February 16, 2006 (date of earliest event reported), filed
      February 22, 2006, File No. 1-9210)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.67*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Director Retainer and
      Attendance Fees (filed as Exhibit 10.2 to the Current Report on Form 8-K of Occidental dated February 16, 2006 (date of
      earliest event reported), filed February 22, 2006, File No. 1-9210)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.68</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007 version
      &#150; Corporate)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.69</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007 version
      &#150; Oil and Gas)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.70</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Terms and Conditions
      of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007 version
      &#150; Chemicals)</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.71*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Securities Purchase
      Agreement, dated as of July 8, 2002, by and between Lyondell Chemical Company and Occidental Chemical Holding Corporation
      (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of Occidental dated August 22, 2002 (date of
      earliest event reported), filed September 6, 2002, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.72*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Stockholders
      Agreement, dated as of August 22, 2002, by and among Lyondell Chemical Company and the Stockholders as defined therein
      (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of Occidental dated August 22, 2002 (date of
      earliest event reported), filed September 6, 2002, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.73*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Registration Rights
      Agreement, dated as of August 22, 2002, by and between Occidental Chemical Holding Corporation and Lyondell Chemical Company
      (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K of Occidental dated August 22, 2002 (date of
      earliest event reported), filed September 6, 2002, File No. 1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>10.74*</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Occidental Partner Sub
      Purchase Agreement, dated July 8, 2002, by and among Lyondell Chemical Company, Occidental Chemical Holding Corporation, Oxy
      CH Corporation and Occidental Chemical Corporation (incorporated by reference to Exhibit 10.5 to the Current Report on Form
      8-K of Occidental dated August 22, 2002 (date of earliest event reported), filed September 6, 2002, File No.
      1-9210).</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>12</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Statement regarding
      computation of total enterprise ratios of earnings to fixed charges for each of the five years in the period ended December
      31, 2006.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>21</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>List of subsidiaries
      of Occidental at December 31, 2006.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>23.1</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Independent Registered
      Public Accounting Firm's Consent.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>23.2</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Expert
      Consent.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>31.1</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Certification of CEO
      Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>31.2</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Certification of CFO
      Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr>
  <tr>
    <td width="9%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.15in;text-align:left'><font face="arial" style='font-size:9pt'><b>32.1</b></font></p></td>
    <td width="91%" valign=top>
      <p style='margin-top:2pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:9pt'>Certifications of CEO
      and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr></table>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>_________________________</font></p>

<p style='margin-top:2pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>* Incorporated herein by reference</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>94</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'><b>SIGNATURES</b></font>
  <br><font face="arial" style='font-size:9pt'>Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
  1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
  authorized.</font></p>

<table width="100%" cellpadding=0 cellspacing=0 border=0>
  <tr>
    <td width="57%">&nbsp;</td>
    <td colspan="2" valign=bottom>
      <p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>OCCIDENTAL
      PETROLEUM CORPORATION</font></p></td></tr>
  <tr>
    <td width="57%" valign=bottom>
      <p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td>
    <td width="2%" valign=bottom>
      <p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:10pt'>By:</font></p></td>
    <td width="41%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ RAY R.
      IRANI</font></p></td></tr>
  <tr>
    <td width="57%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="41%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Ray R.
      Irani
        <br>Chairman of the Board of Directors,
        <br>President and Chief Executive Officer</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:9pt'>Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Signature</u></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Title</u></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Date</u></b></font></p></td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ RAY R.
      IRANI</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Chairman of
      the Board of Directors,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Ray R.
      Irani</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>President
      and Chief Executive Officer</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ STEPHEN
      I. CHAZEN</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Senior
      Executive Vice President</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Stephen I.
      Chazen</font><u></u></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>and Chief
      Financial Officer</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ JIM A.
      LEONARD</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Vice
      President and Controller</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Jim A.
      Leonard</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>(Principal
      Accounting Officer)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ SPENCER
      ABRAHAM</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Spencer
      Abraham</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ RONALD
      W. BURKLE</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Ronald W.
      Burkle</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ JOHN S.
      CHALSTY</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>John S.
      Chalsty</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ EDWARD
      P. DJEREJIAN</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Edward P.
      Djerejian</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ R. CHAD
      DREIER</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>R. Chad
      Dreier</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ JOHN E.
      FEICK</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>John E.
      Feick</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>95</font></p>

<p style='page-break-before:always'></p>

<page>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Signature</u></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Title</u></b></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=top>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:8pt'><b><u>Date</u></b></font></p></td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ IRVIN
      W. MALONEY</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:18pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Irvin W.
      Maloney</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ RODOLFO
      SEGOVIA</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Rodolfo
      Segovia</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ AZIZ D.
      SYRIANI</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Aziz D.
      Syriani</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ ROSEMARY
      TOMICH</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Rosemary
      Tomich</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr>
  <tr>
    <td width="43%" valign=top style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>/s/ WALTER
      L. WEISMAN</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%" valign=bottom>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Director</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="18%" valign=bottom>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>February 27,
      2007</font></p></td></tr>
  <tr>
    <td width="43%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:10pt'>Walter L.
      Weisman</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="18%">&nbsp;</td></tr></table>



<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><img src="recycled.gif">
  <br><font face="arial narrow,arial" style='font-size:9pt'>This report was printed on recycled paper.
  <br>&copy; 2006 Occidental Petroleum Corporation</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'>96</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:6pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:11pt'><b>EXHIBITS</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>3.(i)(b)</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Certificate of
      Amendment of Restated Certificate of Incorporation of Occidental Petroleum Corporation, dated May 5,
      2006.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>10.9</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Amendment No. 1 to
      Occidental Petroleum Corporation Modified Deferred Compensation Plan, effective as of January 1, 2007.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>10.68</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Terms and
      Conditions of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007
      version &#150; Corporate)</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>10.69</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Terms and
      Conditions of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007
      version &#150; Oil and Gas).</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>10.70</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Terms and
      Conditions of Performance-Based Stock Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (January 2007
      version &#150; Chemicals).</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>12</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Statement
      regarding computation of total enterprise ratios of earnings to fixed charges for each of the five years in the period ended
      December 31, 2006.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>21</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>List of
      subsidiaries of Occidental at December 31, 2006.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>23.1</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Independent
      Registered Public Accounting Firm's Consent.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>23.2</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Expert
      Consent.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>31.1</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Certification of
      CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>31.2</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Certification of
      CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr>
  <tr>
    <td width="13%" valign=top>
      <p style='text-align:left;text-indent:.25in;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>32.1</b></font></p></td>
    <td width="87%" valign=top>
      <p style='text-align:justify;margin-top:12.0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Certifications of
      CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></p></td></tr></table>


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<DOCUMENT>
<TYPE>EX-3.(I)
<SEQUENCE>14
<FILENAME>ex3ib-200610k.htm
<DESCRIPTION>EXHIBIT 3.(I)(B)
<TEXT>
<html>

<head>
  <title>Exhibit 3.(i)(b)</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:12pt'><b>EXHIBIT
3.(i)(b)</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'><b>CERTIFICATE OF
AMENDMENT
  <br>OF
  <br>RESTATED CERTIFICATE OF INCORPORATION
  <br>OF
  <br>OCCIDENTAL PETROLEUM CORPORATION</b></font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'>Occidental
Petroleum Corporation, a corporation organized and existing under and by virtue of the General Corporation Law of the State of
Delaware (the &#147;Corporation&#148;),</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'><b>DOES
HEREBY CERTIFY:</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'><b>FIRST:</b>
That at a meeting of the Board of Directors of the Corporation on February 16, 2006, at which a quorum was present and acted
throughout, resolutions were duly adopted setting forth a proposed amendment of the Restated Certificate of Incorporation of the
Corporation to increase the number of authorized shares of common stock (the &#147;Amendment&#148;), declaring the Amendment to be
advisable, and directing that the Amendment be considered at the next annual meeting of the stockholders of the
Corporation.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'><b>SECOND:</b>
That thereafter on May 5, 2006, the 2006 annual meeting of the Corporation was duly held in accordance with the by-laws of the
Corporation and the General Corporation Law of the State of Delaware, at which meeting the necessary number of shares of stock as
required by statute were voted in favor of the following resolution adopting the Amendment:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>AMENDMENT TO
RESTATED CERTIFICATE OF INCORPORATION
  <br>INCREASING AUTHORIZED CAPITAL STOCK</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>RESOLVED</b>,
that Article IV of the Restated Certificate of Incorporation, as amended, of this Corporation be amended so that in its entirety,
said Article IV shall read as set forth below:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-align:center'><font face="times new roman" style='font-size:12pt'>&#147;ARTICLE
IV</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>The
Corporation is authorized to issue two classes of capital stock, designated Common Stock and Preferred Stock. The amount of total
authorized capital stock of the Corporation is 1,150,000,000 shares, of which 1,100,000,000 shares shall be shares of Common Stock,
par value $.20 per share, and 50,000,000 shares shall be shares of Preferred Stock, par value $1.00 per share.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>The
Preferred Stock may be issued in one or more series. The Board of Directors is hereby authorized to issue the shares of Preferred
Stock in such series and to fix, from time to time, before issuance, the number of shares to be included in any series and the
designation, relative powers, preferences and rights and qualifications, limitations or restrictions of all shares of such series.
The authority of the Board of Directors with respect to each series shall include, without</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-bottom:0pt;margin-top:4pt;margin-left:0.25in;margin-right:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>limiting
the generality of the foregoing, the determination of any or all of the following:</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(a)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the number of shares of any series and the designation to distinguish
the shares of such series from the shares of all other series;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the voting powers, if any, and whether such voting powers are full or
limited, in any such series;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(c)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the redemption provisions, if any, applicable to such series, including
the redemption price or prices to be paid;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(d)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;whether dividends, if any, shall be cumulative or noncumulative, the
dividend rate, or method of determining the dividend rate of such series, and the dates and preferences of dividends on such
series;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(e)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the rights of such series upon the voluntary or involuntary dissolution
of, or upon any distribution of, the assets of the Corporation;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(f)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the provisions, if any, pursuant to which the shares of such
series are convertible into, or exchangeable for, shares of any other class or classes or of any other series of the same or any
other class or classes of stock, or any other security, of the Corporation or any other corporation, and the price or prices or the
rates of exchange applicable thereto;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(g)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the right, if any, to subscribe for or to purchase any securities of the
Corporation or any other corporation;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(h)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the provisions, if any, of a sinking fund applicable to such series;
and</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>(i)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other relative, participating, optional or other special
powers, preferences, rights, qualifications, limitations or restrictions thereof;</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>all
as shall be determined from time to time by the Board of Directors and shall be stated in a resolution or resolutions providing for
the issuance of such Preferred Stock (a "Preferred Stock Designation").</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>The
number of authorized shares of Preferred Stock may be increased or decreased (but not below the number of shares then outstanding)
by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, with all such holders voting
as a single class.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>Each
holder of Common Stock of the Corporation entitled to vote shall have one vote for each share thereof held.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>Except
as may be provided by the Board of Directors in a Preferred Stock Designation or by law, the Common Stock shall have the exclusive
right to vote for the election of directors and for all other purposes, and holders of Preferred Stock shall not be entitled to
receive notice of any meeting of stockholders at which they are not entitled to vote or consent.</font></p>

<p style='margin-top:4pt;margin-bottom:0pt;margin-left:0.25in;margin-right:0.25in;text-indent:0.25in;text-align:left'><font face="times new roman" style='font-size:12pt'>The
Corporation shall be entitled to treat the person in whose name any share of its stock is registered as the owner thereof, for all
purposes, and shall not be bound to recognize any equitable or other claim to, or interest in, such share on the part of any other
person, whether or not the Corporation shall have notice thereof, except as expressly provided by applicable law."</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'><b>THIRD:</b>
That the Amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of
Delaware.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:12pt'><b>IN
WITNESS WHEREOF,</b> the Corporation has caused this Certificate of Amendment of Restated Certificate of Incorporation to be signed
by Donald P. de Brier, its Executive Vice President and Secretary, this 5th day of May, 2006.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="3%" valign=bottom>
      <p style='text-align:left;margin-top:36pt;margin-bottom:0pt'><font face="times new roman" style='font-size:12pt'>By</font></p></td>
    <td colspan="2" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:36pt;margin-bottom:0pt'><font face="times new roman" style='font-size:12pt'>/s/ DONALD P.
      DE BRIER</font></p></td>
    <td width="10%">&nbsp;</td></tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="34%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="times new roman" style='font-size:12pt'>Donald P. de
      Brier
        <br>Executive Vice President
        <br>and Secretary</font></p></td></tr></table>






</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>15
<FILENAME>ex109-200610k.htm
<DESCRIPTION>EXHIBIT 10.9
<TEXT>
<html>

<head>
  <title>Exhibit 10.9</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
10.9</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'><b>AMENDMENT
NUMBER 1
  <br>OCCIDENTAL PETROLEUM CORPORATION
  <br>MODIFIED DEFERRED COMPENSATION PLAN</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>WHEREAS</b>,
Occidental Petroleum Corporation (the &#147;Corporation&#148;) maintains the Occidental Petroleum Corporation Modified Deferred
Compensation Plan (the &#147;MDCP&#148;) for the purpose of providing a tax-deferred opportunity for key management and highly
compensated employees of the Corporation and its affiliates to accumulate additional retirement income through deferrals of cash
compensation;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>WHEREAS</b>,
the Corporation maintains the Occidental Petroleum Corporation Savings Plan (the &#147;Savings Plan&#148;);</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>WHEREAS</b>,
the MDCP provides for a Savings Plan Restoration Contribution to the MDCP of an amount equal to the contribution that would have
been made to the Savings Plan but for a reduction in the participant&#146;s Base Salary due to a deferral under the MDCP;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>WHEREAS</b>,
effective January&nbsp;1, 2007, the Savings Plan was amended to permit an Annual Bonus (as defined therein) to be included in the
definition of Compensation for purposes of determining the amount of the employee&#146;s matching contribution under the Savings
Plan; </font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>WHEREAS</b>,
it is desirable to amend the MDCP to include in the Savings Plan Restoration Contribution an amount equal to the contribution that
would have been made to the Savings Plan but for a reduction in the participant&#146;s Annual Bonus due to a deferral under the
MDCP.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>NOW,
THEREFORE</b>, effective January&nbsp;1, 2007, the MDCP is amended as follows:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>ARTICLE IV
  <br>PARTICIPANTS</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;margin-left:1in;margin-right:1in;text-align:left'><font face="times new roman" style='font-size:12pt'>Section
4.6(a) is amended in its entirety to read as follows:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;margin-left:1in;margin-right:1in;text-align:left'><font face="times new roman" style='font-size:12pt'>(a)
&#147;<u>General Rule </u>. For each Plan Year, the Company shall credit to the Savings Plan Restoration Account of any Participant,
an amount equal to the amount by which the contribution that would otherwise have been made by the Company on behalf of the
Participant to the Savings Plan for such Plan Year is reduced by reason of the reduction in the Participant&#146;s Base Salary for
such Plan Year and/or the Participant&#146;s Annual Bonus (as defined in the Savings Plan) paid in such Plan Year because of
deferrals under this Plan. The Savings Plan Restoration Contribution shall be credited to the Savings Plan Restoration Account of
each Participant for each Plan Year at the same time as the Company contribution for such Plan Year is made to the Savings Plan. A
Participant&#146;s interest in any credit to his Savings Plan Restoration</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;margin-left:1in;margin-right:1in;text-align:left'><font face="times new roman" style='font-size:12pt'>Account
and earnings thereon shall vest at the same rate and at the same time as would have been the case had such contribution been made to
the Savings Plan. Notwithstanding anything contained herein to the contrary, if, upon a Participant&#146;s termination of
employment, the Participant has not or does not become 100% vested in his Savings Plan Restoration Account, the unvested portion of
his Savings Plan Restoration Account shall be forfeited prior to the determination of the amount of any benefits under Sections 5.1,
5.5, or 5.6.&#148;</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-indent:1in;text-align:left'><font face="times new roman" style='font-size:12pt'><b>IN
WITNESS WHEREOF</b>, the Corporation has caused its duly authorized officer to execute this amendment this 15th day of February,
2007.</font></p>

<table width="100%" cellpadding=0 cellspacing=0 border=0>
  <tr>
    <td width="30%">&nbsp;</td>
    <td colspan="2" valign=top>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:12pt'><b>OCCIDENTAL
      PETROLEUM CORPORATION</b></font></p></td>
    <td width="15%">&nbsp;</td></tr>
  <tr>
    <td width="30%">&nbsp;</td>
    <td width="4%" valign=bottom>
      <p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:12pt'>By:</font></p></td>
    <td width="51%" style='border-bottom:black 1.0pt solid'>
      <p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:12pt'>/s/ RICHARD
      W. HALLOCK</font></p></td>
    <td width="15%">&nbsp;</td></tr>
  <tr>
    <td width="30%">&nbsp;</td>
    <td colspan="2" valign=top>
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:12pt'>Richard W.
      Hallock
        <br>Executive Vice-President, Human Resources</font></p></td>
    <td width="15%">&nbsp;</td></tr></table>

<p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="times new roman" style='font-size:12pt'>2</font></p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>16
<FILENAME>ex1068-200610k.htm
<DESCRIPTION>EXHIBIT 10.68
<TEXT>
<html>

<head>
  <title>Exhibit 10.68</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
10.68</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:11pt'><b>OCCIDENTAL PETROLEUM
CORPORATION
  <br>2005 LONG-TERM INCENTIVE PLAN
  <br>PERFORMANCE-BASED STOCK AWARD TERMS AND CONDITIONS</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>DATE OF
      GRANT:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1,
      2007</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>TARGET PERFORMANCE
      SHARES</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>See &#147;Shares
      Granted/Awarded&#148;
        <br>(Grant Acknowledgment screen)</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>PERFORMANCE
      PERIOD</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1, 2007
      through December 31, 2010</b></font></td></tr></table>

<p style='margin-top:36pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>These <b>Terms and
Conditions</b>(these &#147;Terms and Conditions&#148;) are set forth as of the Date of Grant between OCCIDENTAL PETROLEUM
CORPORATION, a Delaware corporation ("Occidental") and, with its subsidiaries, (the "Company"), and Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>1.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANT OF TARGET PERFORMANCE SHARES.</b> In accordance with
these Terms and Conditions and the Occidental Petroleum Corporation 2005 Long-Term Incentive Plan, as the same may be amended from
time to time (the "Plan"), Occidental grants to the Grantee as of the Date of Grant, the right to receive in Common Shares and cash
up to 200% of the number/value of Target Performance Shares.  For the purposes of these Terms and Conditions, "Target Performance
Shares" means a bookkeeping entry that records the equivalent of Common Shares awarded pursuant to Section 4.2 of the Plan that is
payable upon the achievement of the Performance Goals. Target Performance Shares are not Common Shares and have no voting rights or,
except as stated in Section 6, dividend rights.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RESTRICTIONS ON TRANSFER.</b> Neither these Terms and
Conditions nor any right to receive Common Shares or cash pursuant to these Terms and Conditions may be transferred or assigned by
the Grantee other than (i) to a beneficiary designated on a form approved by the Company (if permitted by local law), by will or, if
the Grantee dies without designating a beneficiary of a valid will, by the laws of descent and distribution, or (ii) pursuant to a
domestic relations order, if applicable, (if approved or ratified by the Administrator).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>3.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PERFORMANCE GOALS.</b> The Performance Goal for the Performance
Period is a peer company comparison based on Total Stockholder Return, as set forth on Exhibit 1. Total Stockholder Return shall be
calculated for each peer company using the average of its last reported sale price per share of common stock on the New York Stock
Exchange - Composite Transactions for the last ten trading days of December 2006 and the average of its last reported sale price per
share of common stock on the New York Stock Exchange - Composite Transactions for the last ten trading days of 2010. In addition to
the Company, the peer companies are: Anadarko Petroleum Corporation, Apache Corporation, Chevron Corporation, ConocoPhillips, Devon
Energy Corporation, ExxonMobil Corporation, and Hess Corporation. If a peer company ceases to be a publicly-traded company at any
time during the Performance Period or the Administrator determines pursuant to Section 7 of these Terms and Conditions to reflect a
change in circumstances with respect to any peer company, then such company will be removed as a peer company and the achievement of
the Performance Goal will be determined with respect to the remaining peer companies as set forth on Exhibit 1.</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>4.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>VESTING AND FORFEITURE OF TARGET PERFORMANCE SHARES</b>. (a) The
Grantee must remain in the continuous employ of the Company through the last day of the Performance Period to receive payment of
this award. The continuous employment of the Grantee will not be deemed to have been interrupted by reason of the transfer of the
Grantee&#146;s employment among the Company and its affiliates or an approved leave of absence. However, if, prior to the end of the
Performance Period, the Grantee dies or becomes permanently disabled while in the employ of the Company, retires with the consent of
the Company, or terminates employment for the convenience of the Company (each of the foregoing, a &#147;Forfeiture Event&#148;),
then the number of Target Performance Shares upon which the Grantee's award is based will be reduced on a pro rata basis based upon
the number of days remaining in the Performance Period following the date of the Forfeiture Event.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Grantee's right to receive payment of this award in an amount not to exceed 200%
of the Target Performance Shares, rounded up to the nearest whole share, will be based and become nonforfeitable upon the
Administrator&#146;s certification of the attainment of the Performance Goals.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(c)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of Section 4(b), if prior to the end of the Performance Period, the
Grantee transfers his employment among the Company and its affiliates, the amount of the award attained by the Grantee shall be
determined by assessing the level of achievement of the Performance Goals certified by the Administrator for each employing entity
and multiplying the number of Target Performance Shares attainable at such level by a fraction equal to the number of months in the
Performance Period that the Grantee worked for the entity divided by the total number of months in the Performance
Period.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(d)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section 4(b), if a Change in Control Event occurs prior to the end
of the Performance Period, the Grantee's right to receive Common Shares equal to the number of Target Performance Shares (as
adjusted for any Forfeiture Event pursuant to Section 4(a)) will become nonforfeitable. The right to receive cash in excess of the
number of Target Performance Shares (as adjusted for any Forfeiture Event pursuant to Section 4(a)) will be forfeited.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>5.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PAYMENT OF AWARDS</b>. Up to and including 100% of the Target
Performance Shares as adjusted pursuant to Sections 4 and 7 of these Terms and Conditions will be settled in Common Shares and the
amount, if any, above 100% of the Target Performance Shares as so adjusted will be settled in cash. The cash payment will equal the
closing price of the Common Shares on the New York Stock Exchange on the date of the Administrator&#146;s certification (the
&#147;Certification Date Value&#148;) of the attainment of the Performance Goals and will be paid as promptly as possible after such
date.  The Common Shares covered by these Terms and Conditions or any prorated portion thereof shall be issued to the Grantee as
promptly as practicable after the Administrator's certification of the attainment of the Performance Goals or the Change in Control
Event, as the case may be.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>6.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CREDITING AND PAYMENT OF DIVIDEND EQUIVALENTS</b>. With respect to
the number of Target Performance Shares listed above, the Grantee will be credited on the books and records of Occidental with an
amount (the "Dividend Equivalent") equal to the amount per share of any cash dividends declared by the Board on the outstanding
Common Shares during the period beginning on the Date of Grant and ending with respect to any portion of the Target Performance
Shares covered by these Terms and Conditions on the date on which the Grantee's right to receive such portion becomes
nonforfeitable, or, if earlier, the date on which the Grantee forfeits the right to receive such portion. Occidental will pay in
cash to the Grantee an amount equal to</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>2</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>the Dividend Equivalents
credited to such Grantee as promptly as may be practicable after the Grantee has been credited with a Dividend
Equivalent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>7.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ADJUSTMENTS</b>. (a) The number or kind of shares of stock covered by
these Terms and Conditions shall be adjusted as the Administrator determines pursuant to Section 7.2 of the Plan in order to prevent
dilution or expansion of the Grantee's rights under these Terms and Conditions as a result of events such as stock dividends, stock
splits or other changes in the capital structure of Occidental, or any merger, consolidation, spin-off, liquidation or other
corporate transaction having a similar effect.  If any such adjustment occurs, the Company will give the Grantee written notice of
the adjustment.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Administrator may adjust the Performance Goal or other features of
this Grant as permitted by Section 5.2.3 of the Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>8.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>NO EMPLOYMENT CONTRACT.</b> Nothing in these Terms and Conditions
confers upon the Grantee any right with respect to continued employment by the Company, nor limits in any manner the right of the
Company to terminate the employment or adjust the compensation of the Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>9.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>TAXES AND WITHHOLDING.</b> The Grantee is responsible for any
federal, state, local or foreign tax, including income tax, social insurance, payroll tax, payment on account or other tax-related
withholding with respect to the grant of Target Performance Shares (including the grant, the vesting, the receipt of Common Shares
or cash, the sale of Common Shares and the receipt of dividends or dividend equivalents, if any). If the Company must withhold any
tax in connection with the issuance of any Common Shares or the payment of cash or any other consideration pursuant to the grant of
Target Performance Shares (other than the payment of Dividend Equivalents), the Grantee shall satisfy all or any part of any such
withholding obligation first from any cash amount payable under these Terms and Conditions and second by surrendering to the Company
a portion of the Common Shares that are issued or transferred to the Grantee pursuant to these Terms and Conditions. Any Common
Shares so surrendered by the Grantee shall be credited against the Grantee&#146;s withholding obligation at their Certification Date
Value. If the Company must withhold any tax in connection with granting or vesting of Target Performance Shares or the payment of
Dividend Equivalents pursuant to this grant of Target Performance Shares, the Grantee by acknowledging these Terms and Conditions
agrees that, so long as the Grantee is an employee of the Company for tax purposes, all or any part of any such withholding
obligation shall be deducted from the Grantee&#146;s wages or other cash compensation (including regular pay). The Grantee shall pay
to the Company any amount that cannot be satisfied by the means previously described.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>10.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMPLIANCE WITH LAW.</b> The Company will make reasonable efforts to comply
with all applicable federal, state and foreign securities laws; however, the Company will not issue any Common Shares or other
securities pursuant to these Terms and Conditions if their issuance would result in a violation of any such law.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>11.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO OTHER BENEFITS.</b> The benefits received by the Grantee under
these Terms and Conditions will not be taken into account in determining any benefits to which the Grantee may be entitled under any
profit sharing, retirement or other benefit or compensation plan maintained by the Company, including the amount of any life
insurance coverage available to any beneficiary of the Grantee under any life insurance plan covering employees of the Company.
Additionally, the Target Performance Shares are not part of normal or expected compensation or salary for any purposes, including,
but not limited to, calculation of any</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>3</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>severance, resignation,
termination, redundancy, end of service payments, bonuses or long-service awards. This grant of Target Performance Shares does not
create any contractual or other right to receive future grants of Target Performance Shares, or benefits in lieu of Target
Performance Shares, even if Grantee has a history of receiving Target Performance Shares or other stock awards.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>12.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>AMENDMENTS.</b> The Plan may be modified, amended, suspended or terminated
by the Company at any time, as provided in the Plan. Any amendment to the Plan will be deemed to be an amendment to these Terms and
Conditions to the extent it is applicable to these Terms and Conditions; however, no amendment will adversely affect the rights of
the Grantee under these Terms and Conditions without the Grantee's consent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>13.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SEVERABILITY.</b> If one or more of the provisions of these Terms and
Conditions is invalidated for any reason by a court of competent jurisdiction, the invalidated provisions shall be deemed to be
separable from the other provisions of these Terms and Conditions, and the remaining provisions of these Terms and Conditions will
continue to be valid and fully enforceable.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>14.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO PLAN; INTERPRETATION.</b> These Terms and Conditions are
subject to the terms and conditions of the Plan. In the event of any inconsistent provisions between these Terms and Conditions and
the Plan, the provisions of the Plan control. Capitalized terms used in these Terms and Conditions without definition have the
meanings assigned to them in the Plan. References to Sections are to Sections of these Terms and Conditions unless otherwise
noted.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>15.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SUCCESSORS AND ASSIGNS.</b> Subject to Sections 2 and 4, the provisions of
these Terms and Conditions shall be for the benefit of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of the Grantee, and the successors and assigns of the Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>16.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GOVERNING LAW.</b> The laws of the State of Delaware govern the
interpretation, performance, and enforcement of these Terms and Conditions.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>17.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PRIVACY RIGHTS.</b> By accepting this award, the Grantee explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee&#146;s personal data as
described in these Terms and Conditions by and among, as applicable, the Company and its affiliates for the exclusive purpose of
implementing, administering and managing the Grantee&#146;s participation in the Plan. The Company holds or may receive from any
agent designated by the Company certain personal information about the Grantee, including, but not limited to, the Grantee&#146;s
name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any shares of stock or directorships held in Occidental, details of this Target Performance Share award or any other
entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Grantee&#146;s favor, for the
purpose of implementing, administering and managing the Plan, including complying with applicable tax and securities laws
(&#147;Data&#148;). Data may be transferred to any third parties assisting in the implementation, administration and management of
the Plan.  These recipients may be located in the Grantee&#146;s country or elsewhere, and may have different data privacy laws and
protections than the Grantee&#146;s country. By accepting these Terms and Conditions, the Grantee authorizes the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes described above. The Grantee may,
at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to
Data or refuse or withdraw the consents herein, in any</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>4</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>case without cost, by
contacting the Administrator in writing. Refusing or withdrawing consent may affect the Grantee&#146;s ability to participate in the
Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>18.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ELECTRONIC DELIVERY.</b> The Company may, in its sole discretion, decide to
deliver any documents related to this Target Performance Share award granted under the Plan or future awards that may be granted
under the Plan (if any) by electronic means or to request the Grantee&#146;s consent to participate in the Plan by electronic means.
The Grantee hereby consents to receive such documents by electronic delivery and, if requested, to participate in the Plan through
an on-line or electronic system established and maintained by the Company or another third party designated by the
Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>19.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANTEE'S REPRESENTATIONS AND RELEASES.</b> By accepting this award, the
Grantee acknowledges that the Grantee has read these Terms and Conditions and understands that (i) the grant of this Target
Performance Share award is made voluntarily by Occidental in its discretion with no liability on the part of any of its direct or
indirect subsidiaries and that, if the Grantee is not an employee of Occidental, the Grantee is not, and will not be considered, an
employee of Occidental but the Grantee is a third party (employee of a subsidiary) to whom this Target Performance Share award is
granted; (ii) the Grantee&#146;s participation in the Plan is voluntary; (iii) the future value of any Common shares issued pursuant
to this Target Performance Share award cannot be predicted and Occidental does not assume liability in the event such Common Shares
have no value in the future; and (iv) subject to the terms of any tax equalization agreement between the Grantee and the entity
employing the Grantee, the Grantee will be solely responsible for the payment or nonpayment of taxes imposed or threatened to be
imposed by any authority of any jurisdiction.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>In consideration of the
grant of this Target Performance Share award, no claim or entitlement to compensation or damages shall arise from termination of
this Target Performance Share award or diminution in value of this Target Performance Share award or Common Shares issued pursuant
to this Target Performance Share award resulting from termination of the Grantee&#146;s employment by the Company (for any reason
whatsoever and whether or not in breach of local labor laws) and the Grantee irrevocably releases the Company from any such claim
that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen,
then, by accepting these Terms and Conditions, the Grantee shall be deemed irrevocably to have waived his or her entitlement to
pursue such claim.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>5</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
1</b></font>
  <br><font face="arial" style='font-size:12pt'><b>2005 Long-Term Incentive Plan</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:14pt'><b>2007 Grant to OPC
Participants</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>Performance up to and at
target pays in shares; performance over target pays in cash</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'>(% of Number of Target
Shares of Performance Stock that become Nonforfeitable based on Comparison of Total Stockholder Return for the Peer Companies for
the Performance Period)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>Ranking</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1 Co.</b></font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>200%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>167%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>167%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>150%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>150%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>133%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>133%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>133%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>67%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>67%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>67%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
</table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>*&nbsp;&nbsp;Committee
discretion</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>6</font></p>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>17
<FILENAME>ex1069-200610k.htm
<DESCRIPTION>EXHIBIT 10.69
<TEXT>
<html>

<head>
  <title>Exhibit 10.69</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
10.69</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:11pt'><b>OCCIDENTAL PETROLEUM
CORPORATION
  <br>2005 LONG-TERM INCENTIVE PLAN
  <br>PERFORMANCE-BASED STOCK AWARD TERMS AND CONDITIONS</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>DATE OF
      GRANT:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1,
      2007</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>TARGET PERFORMANCE
      SHARES:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>See &#147;Shares
      Granted/Awarded&#148;
        <br>(Grant Acknowledgment screen)</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>PERFORMANCE
      PERIOD:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1, 2007
      through December 31, 2010</b></font></p></td></tr></table>

<p style='margin-top:36pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>These <b>Terms and
Conditions</b> (these &#147;Terms and Conditions&#148;) are set forth as of the Date of Grant between OCCIDENTAL PETROLEUM
CORPORATION, a Delaware corporation ("Occidental") and, with its subsidiaries, (the "Company"), and Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>1.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANT OF TARGET PERFORMANCE SHARES</b>. In accordance with
these Terms and Conditions and the Occidental Petroleum Corporation 2005 Long-Term Incentive Plan, as the same may be amended from
time to time (the "Plan"), Occidental grants to the Grantee as of the Date of Grant, the right to receive in Common Shares and cash
up to 200% of the number/value of Target Performance Shares. For the purposes of these Terms and Conditions, &#147;Target
Performance Shares&#148; means a bookkeeping entry that records the equivalent of Common Shares awarded pursuant to Section 4.2 of
the Plan that is payable upon the achievement of the Performance Goals. Target Performance Shares are not Common Shares and have no
voting rights or, except as stated in Section 6, dividend rights.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RESTRICTIONS ON TRANSFER.</b> Neither these Terms and
Conditions nor any right to receive Common Shares or cash pursuant to these Terms and Conditions may be transferred or assigned by
the Grantee other than (i) to a beneficiary designated on a form approved by the Company (if permitted by local law), by will or, if
the Grantee dies without designating a beneficiary of a valid will, by the laws of descent and distribution, or (ii) pursuant to a
domestic relations order, if applicable, (if approved or ratified by the Administrator).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>3.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PERFORMANCE GOALS.</b> The Performance Goal for the Performance
Period is based on (i) Return on Assets and (ii) a peer company comparison based on Total Stockholder Return, as set forth on
Exhibit 1.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>For the
purposes of these Terms and Conditions, &#147;Return on Assets&#148; means the percentage obtained by dividing (A) the sum of the
Oil &amp; Gas after-tax earnings for each year in the Performance Period by (B) the sum of the December 31 Oil &amp; Gas assets for
each year in the Performance Period. For the purposes of the foregoing sentence, &#147;Assets&#148; generally will reflect all
acquisitions, divestitures and write-downs during the Performance Period. Total Stockholder Return shall be calculated for each peer
company using the average of its last reported sale price per share of common stock on the New York Stock Exchange - Composite
Transactions for the last ten trading days of December 2006 and the average of its last reported sale price per share of common
stock on the New York Stock Exchange - Composite Transactions for the last ten trading days of 2010. In addition to the Company, the
peer companies are: Anadarko Petroleum Corporation, Apache Corporation, Chevron Corporation, ConocoPhillips, Devon Energy
Corporation, Exxon Mobil Corporation, and Hess Corporation.  If a peer company ceases to be a publicly-traded company at any time
during the Performance Period or the Administrator determines pursuant to Section 7 of these Terms and Conditions to</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>reflect a change in
circumstances with respect to any peer company, then such company will be removed as a peer company and the achievement of the
Performance Goal will be determined with respect to the remaining peer companies as set forth on Exhibit 1.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>4.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>VESTING AND FORFEITURE OF TARGET PERFORMANCE SHARES</b>. (a)
The Grantee must remain in the continuous employ of the Company through the last day of the Performance Period to receive payment of
this award. The continuous employment of the Grantee will not be deemed to have been interrupted by reason of the transfer of the
Grantee&#146;s employment among the Company and its affiliates or an approved leave of absence. However, if, prior to the end of the
Performance Period, the Grantee dies or becomes permanently disabled while in the employ of the Company, retires with the consent of
the Company, or terminates employment for the convenience of the Company (each of the foregoing, a &#147;Forfeiture Event&#148;),
then the number of Target Performance Shares upon which the Grantee's award is based will be reduced on a pro rata basis based upon
the number of days remaining in the Performance Period following the date of the Forfeiture Event.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Grantee's right to receive payment of this award in an amount not to exceed 200%
of the Target Performance Shares, rounded up to the nearest whole share, will be based and become nonforfeitable upon the
Administrator&#146;s certification of the attainment of the Performance Goals.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(c)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of Section 4(b), if prior to the end of the Performance Period, the
Grantee transfers his employment among the Company and its affiliates, the amount of the award attained by the Grantee shall be
determined by assessing the level of achievement of the Performance Goals certified by the Administrator for each employing entity
and multiplying the number of Target Performance Shares attainable at such level by a fraction equal to the number of months in the
Performance Period that the Grantee worked for the entity divided by the total number of months in the Performance
Period.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(d)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section 4(b), if a Change in Control Event occurs prior to the end
of the Performance Period, the Grantee's right to receive Common Shares equal to the number of Target Performance Shares (as
adjusted for any Forfeiture Event pursuant to Section 4(a)) will become nonforfeitable. The right to receive cash in excess of the
number of Target Performance Shares (as adjusted for any Forfeiture Event pursuant to Section 4(a)) will be forfeited.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>5.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PAYMENT OF AWARDS</b>. Up to and including 100% of the Target
Performance Shares as adjusted pursuant to Sections 4 and 7 of these Terms and Conditions will be settled in Common Shares and the
amount, if any, above 100% of the Target Performance Shares as so adjusted will be settled in cash. The cash payment will equal the
closing price of the Common Shares on the New York Stock Exchange on the date of the Administrator&#146;s certification (the
&#147;Certification Date Value&#148;) of the attainment of the Performance Goals and will be paid as promptly as possible after such
date. The Common Shares covered by these Terms and Conditions or any prorated portion thereof shall be issued to the Grantee as
promptly as practicable after the Administrator's certification of the attainment of the Performance Goals or the Change in Control
Event, as the case may be.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>6.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CREDITING AND PAYMENT OF DIVIDEND EQUIVALENTS</b>. With respect
to the number of Target Performance Shares listed above, the Grantee will be credited on the books and records of Occidental with an
amount (the "Dividend Equivalent") equal to the amount per share of any</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>2</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>cash dividends declared by
the Board on the outstanding Common Shares during the period beginning on the Date of Grant and ending with respect to any portion
of the Target Performance Shares covered by these Terms and Conditions on the date on which the Grantee's right to receive such
portion becomes nonforfeitable, or, if earlier, the date on which the Grantee forfeits the right to receive such portion. Occidental
will pay in cash to the Grantee an amount equal to the Dividend Equivalents credited to such Grantee as promptly as may be
practicable after the Grantee has been credited with a Dividend Equivalent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>7.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ADJUSTMENTS</b>. (a) The number or kind of shares of stock
covered by these Terms and Conditions shall be adjusted as the Administrator determines pursuant to Section 7.2 of the Plan in order
to prevent dilution or expansion of the Grantee's rights under these Terms and Conditions as a result of events such as stock
dividends, stock splits or other changes in the capital structure of Occidental, or any merger, consolidation, spin-off, liquidation
or other corporate transaction having a similar effect.  If any such adjustment occurs, the Company will give the Grantee written
notice of the adjustment.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Administrator may adjust the Performance Goal or other features of
this Grant as permitted by Section 5.2.3 of the Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>8.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>NO EMPLOYMENT CONTRACT.</b> Nothing in these Terms and
Conditions confers upon the Grantee any right with respect to continued employment by the Company, nor limits in any manner the
right of the Company to terminate the employment or adjust the compensation of the Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>9.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>TAXES AND WITHHOLDING.</b> The Grantee is responsible for any
federal, state, local or foreign tax, including income tax, social insurance, payroll tax, payment on account or other tax-related
withholding with respect to the grant of Target Performance Shares (including the grant, the vesting, the receipt of Common Shares
or cash, the sale of Common Shares and the receipt of dividends or dividend equivalents, if any). If the Company must withhold any
tax in connection with the issuance of any Common Shares or the payment of cash or any other consideration pursuant to the grant of
Target Performance Shares (other than the payment of Dividend Equivalents), the Grantee shall satisfy all or any part of any such
withholding obligation first from any cash amount payable under these Terms and Conditions and second by surrendering to the Company
a portion of the Common Shares that are issued or transferred to the Grantee pursuant to these Terms and Conditions. Any Common
Shares so surrendered by the Grantee shall be credited against the Grantee&#146;s withholding obligation at their Certification Date
Value. If the Company must withhold any tax in connection with granting or vesting of Target Performance Shares or the payment of
Dividend Equivalents pursuant to this grant of Target Performance Shares, the Grantee by acknowledging these Terms and Conditions
agrees that, so long as the Grantee is an employee of the Company for tax purposes, all or any part of any such withholding
obligation shall be deducted from the Grantee&#146;s wages or other cash compensation (including regular pay). The Grantee shall pay
to the Company any amount that cannot be satisfied by the means previously described.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>10.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMPLIANCE WITH LAW.</b> The Company will make reasonable efforts to comply
with all applicable federal, state and foreign securities laws; however, the Company will not issue any Common Shares or other
securities pursuant to these Terms and Conditions if their issuance would result in a violation of any such law.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>3</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>11.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO OTHER BENEFITS.</b> The benefits received by the Grantee under
these Terms and Conditions will not be taken into account in determining any benefits to which the Grantee may be entitled under any
profit sharing, retirement or other benefit or compensation plan maintained by the Company, including the amount of any life
insurance coverage available to any beneficiary of the Grantee under any life insurance plan covering employees of the Company.
Additionally, the Target Performance Shares are not part of normal or expected compensation or salary for any purposes, including,
but not limited to, calculation of any severance, resignation, termination, redundancy, end of service payments, bonuses or
long-service awards. This grant of Target Performance Shares does not create any contractual or other right to receive future grants
of Target Performance Shares, or benefits in lieu of Target Performance Shares, even if Grantee has a history of receiving Target
Performance Shares or other stock awards.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>12.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>AMENDMENTS.</b> The Plan may be modified, amended, suspended or terminated
by the Company at any time, as provided in the Plan.  Any amendment to the Plan will be deemed to be an amendment to these Terms and
Conditions to the extent it is applicable to these Terms and Conditions; however, no amendment will adversely affect the rights of
the Grantee under these Terms and Conditions without the Grantee's consent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>13.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SEVERABILITY.</b> If one or more of the provisions of these Terms and
Conditions is invalidated for any reason by a court of competent jurisdiction, the invalidated provisions shall be deemed to be
separable from the other provisions of these Terms and Conditions, and the remaining provisions of these Terms and Conditions will
continue to be valid and fully enforceable.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>14.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO PLAN; INTERPRETATION.</b> These Terms and Conditions are
subject to the terms and conditions of the Plan. In the event of any inconsistent provisions between these Terms and Conditions and
the Plan, the provisions of the Plan control. Capitalized terms used in these Terms and Conditions without definition have the
meanings assigned to them in the Plan. References to Sections are to Sections of these Terms and Conditions unless otherwise
noted.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>15.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SUCCESSORS AND ASSIGNS.</b> Subject to Sections 2 and 4, the provisions of
these Terms and Conditions shall be for the benefit of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of the Grantee, and the successors and assigns of the Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>16.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GOVERNING LAW.</b> The laws of the State of Delaware govern the
interpretation, performance, and enforcement of these Terms and Conditions.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>17.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PRIVACY RIGHTS.</b> By accepting this award, the Grantee explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee&#146;s personal data as
described in these Terms and Conditions by and among, as applicable, the Company and its affiliates for the exclusive purpose of
implementing, administering and managing the Grantee&#146;s participation in the Plan.  The Company holds or may receive from any
agent designated by the Company certain personal information about the Grantee, including, but not limited to, the Grantee&#146;s
name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any shares of stock or directorships held in Occidental, details of this Target Performance Share award or any other
entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>4</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>the Grantee&#146;s favor,
for the purpose of implementing, administering and managing the Plan, including complying with applicable tax and securities laws
(&#147;Data&#148;). Data may be transferred to any third parties assisting in the implementation, administration and management of
the Plan. These recipients may be located in the Grantee&#146;s country or elsewhere, and may have different data privacy laws and
protections than the Grantee&#146;s country. By accepting these Terms and Conditions, the Grantee authorizes the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes described above. The Grantee may,
at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to
Data or refuse or withdraw the consents herein, in any case without cost, by contacting the Administrator in writing. Refusing or
withdrawing consent may affect the Grantee&#146;s ability to participate in the Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>18.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ELECTRONIC DELIVERY.</b> The Company may, in its sole discretion, decide to
deliver any documents related to this Target Performance Share award granted under the Plan or future awards that may be granted
under the Plan (if any) by electronic means or to request the Grantee&#146;s consent to participate in the Plan by electronic means.
The Grantee hereby consents to receive such documents by electronic delivery and, if requested, to participate in the Plan through
an on-line or electronic system established and maintained by the Company or another third party designated by the
Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>19.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANTEE'S REPRESENTATIONS AND RELEASES.</b> By accepting this award, the
Grantee acknowledges that the Grantee has read these Terms and Conditions and understands that (i) the grant of this Target
Performance Share award is made voluntarily by Occidental in its discretion with no liability on the part of any of its direct or
indirect subsidiaries and that, if the Grantee is not an employee of Occidental, the Grantee is not, and will not be considered, an
employee of Occidental but the Grantee is a third party (employee of a subsidiary) to whom this Target Performance Share award is
granted; (ii) the Grantee&#146;s participation in the Plan is voluntary; (iii) the future value of any Common shares issued pursuant
to this Target Performance Share award cannot be predicted and Occidental does not assume liability in the event such Common Shares
have no value in the future; and (iv) subject to the terms of any tax equalization agreement between the Grantee and the entity
employing the Grantee, the Grantee will be solely responsible for the payment or nonpayment of taxes imposed or threatened to be
imposed by any authority of any jurisdiction.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>In consideration of the
grant of this Target Performance Share award, no claim or entitlement to compensation or damages shall arise from termination of
this Target Performance Share award or diminution in value of this Target Performance Share award or Common Shares issued pursuant
to this Target Performance Share award resulting from termination of the Grantee&#146;s employment by the Company (for any reason
whatsoever and whether or not in breach of local labor laws) and the Grantee irrevocably releases the Company from any such claim
that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen,
then, by accepting these Terms and Conditions, the Grantee shall be deemed irrevocably to have waived his or her entitlement to
pursue such claim.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>5</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
1</b></font>
  <br><font face="arial" style='font-size:12pt'><b>2005 Long-Term Incentive Plan</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:14pt'><b>2007 Grant to Oil &amp;
Gas Participants</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>Performance up to and at
target pays in shares; performance over target pays in cash</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'>(% of Number of Target
Shares of Performance Stock that become Nonforfeitable based on Comparison of Total Stockholder Return for the Peer Companies for
the Performance Period)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>Ranking</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1 Co.</b></font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>83.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>83.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>75%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>75%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>25%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>25%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>16.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>16.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
</table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>*&nbsp;&nbsp;Committee
discretion</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>PLUS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'>(% of Number of Target
Shares of Performance Stock that become Nonforfeitable based on Return on Assets for the Performance Period)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>Return on
      Assets</b></font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>Payout
      Percentage</b></font></p></td></tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>15%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td></tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>11%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p> </td> </tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>8%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>0%</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>If actual ROA falls between
stated ROA&#146;s, payout percentages will be interpolated.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>6</font></p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>18
<FILENAME>ex1070-200610k.htm
<DESCRIPTION>EXHIBIT 10.70
<TEXT>
<html>

<head>
  <title>Exhibit 10.70</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
10.70</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:11pt'><b>OCCIDENTAL PETROLEUM
CORPORATION
  <br>2005 LONG-TERM INCENTIVE PLAN
  <br>PERFORMANCE-BASED STOCK AWARD TERMS AND CONDITIONS</b></font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>DATE OF
      GRANT:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1,
      2007</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>TARGET PERFORMANCE
      SHARES:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>See &#147;Shares
      Granted/Awarded&#148;
        <br>(Grant Acknowledgment screen)</b></font></p></td></tr>
  <tr>
    <td width="40%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>PERFORMANCE
      PERIOD:</b></font></p></td>
    <td width="60%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:11pt'><b>January 1, 2007
      through December 31, 2010</b></font></p></td></tr></table>

<p style='margin-top:36pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>These <b>Terms and
Conditions</b> (these &#147;Terms and Conditions&#148;) are set forth as of the Date of Grant between OCCIDENTAL PETROLEUM
CORPORATION, a Delaware corporation ("Occidental") and, with its subsidiaries, (the "Company"), and Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>1.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANT OF TARGET PERFORMANCE SHARES</b>. In accordance with
these Terms and Conditions and the Occidental Petroleum Corporation 2005 Long-Term Incentive Plan, as the same may be amended from
time to time (the "Plan"), Occidental grants to the Grantee as of the Date of Grant, the right to receive in Common Shares and cash
up to 200% of the number/value of Target Performance Shares. For the purposes of these Terms and Conditions, &#147;Target
Performance Shares&#148; means a bookkeeping entry that records the equivalent of Common Shares awarded pursuant to Section 4.2 of
the Plan that is payable upon the achievement of the Performance Goals. Target Performance Shares are not Common Shares and have no
voting rights or, except as stated in Section 6, dividend rights.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RESTRICTIONS ON TRANSFER.</b> Neither these Terms and
Conditions nor any right to receive Common Shares or cash pursuant to these Terms and Conditions may be transferred or assigned by
the Grantee other than (i) to a beneficiary designated on a form approved by the Company (if permitted by local law), by will or, if
the Grantee dies without designating a beneficiary of a valid will, by the laws of descent and distribution, or (ii) pursuant to a
domestic relations order, if applicable, (if approved or ratified by the Administrator).</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>3.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PERFORMANCE GOALS.</b> The Performance Goal for the Performance
Period is based on (i) Return on Assets and (ii) a peer company comparison based on Total Stockholder Return, as set forth on
Exhibit 1.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>For the
purposes of these Terms and Conditions, &#147;Return on Assets&#148; means the percentage obtained by (A) multiplying the sum of the
before tax earnings for each year in the Performance Period of Occidental Chemical Corporation (&#147;OxyChem&#148;) by 0.65 and (B)
dividing the resulting product by the sum of such division&#146;s Assets as of December 31 for each year in the Performance Period.
For the purposes of the foregoing sentence, &#147;Assets&#148; generally will reflect all acquisitions, divestitures and write-downs
during the Performance Period. Total Stockholder Return shall be calculated for each peer company using the average of its last
reported sale price per share of common stock on the New York Stock Exchange - Composite Transactions for the last ten trading days
of December 2006 and the average of its last reported sale price per share of common stock on the New York Stock Exchange -
Composite Transactions for the last ten trading days of 2010.  In addition to the Company, the peer companies are: Anadarko
Petroleum Corporation, Apache Corporation, Chevron Corporation, ConocoPhillips, Devon Energy Corporation, Exxon Mobil Corporation,
and Hess Corporation.  If a peer company ceases to be a publicly-traded company at any time during the Performance</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>Period or the Administrator
determines pursuant to Section 7 of these Terms and Conditions to reflect a change in circumstances with respect to any peer
company, then such company will be removed as a peer company and the achievement of the Performance Goal will be determined with
respect to the remaining peer companies as set forth on Exhibit 1.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>4.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>VESTING AND FORFEITURE OF TARGET PERFORMANCE SHARES</b>. (a)
The Grantee must remain in the continuous employ of the Company through the last day of the Performance Period to receive payment of
this award. The continuous employment of the Grantee will not be deemed to have been interrupted by reason of the transfer of the
Grantee&#146;s employment among the Company and its affiliates or an approved leave of absence.  However, if, prior to the end of
the Performance Period, the Grantee dies or becomes permanently disabled while in the employ of the Company, retires with the
consent of the Company, or terminates employment for the convenience of the Company (each of the foregoing, a &#147;Forfeiture
Event&#148;), then the number of Target Performance Shares upon which the Grantee's award is based will be reduced on a pro rata
basis based upon the number of days remaining in the Performance Period following the date of the Forfeiture Event.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Grantee's right to receive payment of this award in an amount not to exceed 200%
of the Target Performance Shares, rounded up to the nearest whole share, will be based and become nonforfeitable upon the
Administrator&#146;s certification of the attainment of the Performance Goals.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(c)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of Section 4(b), if prior to the end of the Performance Period, the
Grantee transfers his employment among the Company and its affiliates, the amount of the award attained by the Grantee shall be
determined by assessing the level of achievement of the Performance Goals certified by the Administrator for each employing entity
and multiplying the number of Target Performance Shares attainable at such level by a fraction equal to the number of months in the
Performance Period that the Grantee worked for the entity divided by the total number of months in the Performance
Period.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(d)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section 4(b), if a Change in Control Event occurs prior to the end
of the Performance Period, the Grantee's right to receive Common Shares equal to the number of Target Performance Shares (as
adjusted for any Forfeiture Event pursuant to Section 4(a)) will become nonforfeitable. The right to receive cash in excess of the
number of Target Performance Shares (as adjusted for any Forfeiture Event pursuant to Section 4(a)) will be forfeited.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>5.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PAYMENT OF AWARDS</b>. Up to and including 100% of the Target
Performance Shares as adjusted pursuant to Sections 4 and 7 of these Terms and Conditions will be settled in Common Shares and the
amount, if any, above 100% of the Target Performance Shares as so adjusted will be settled in cash. The cash payment will equal the
closing price of the Common Shares on the New York Stock Exchange on the date of the Administrator&#146;s certification (the
&#147;Certification Date Value&#148;) of the attainment of the Performance Goals and will be paid as promptly as possible after such
date. The Common Shares covered by these Terms and Conditions or any prorated portion thereof shall be issued to the Grantee as
promptly as practicable after the Administrator's certification of the attainment of the Performance Goals or the Change in Control
Event, as the case may be.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>6.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>CREDITING AND PAYMENT OF DIVIDEND EQUIVALENTS</b>. With respect
to the number of Target Performance Shares listed above, the Grantee will be credited on the books and records</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>2</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>of Occidental with an
amount (the "Dividend Equivalent") equal to the amount per share of any cash dividends declared by the Board on the outstanding
Common Shares during the period beginning on the Date of Grant and ending with respect to any portion of the Target Performance
Shares covered by these Terms and Conditions on the date on which the Grantee's right to receive such portion becomes
nonforfeitable, or, if earlier, the date on which the Grantee forfeits the right to receive such portion. Occidental will pay in
cash to the Grantee an amount equal to the Dividend Equivalents credited to such Grantee as promptly as may be practicable after the
Grantee has been credited with a Dividend Equivalent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>7.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ADJUSTMENTS</b>. (a) The number or kind of shares of stock
covered by these Terms and Conditions may be adjusted as the Administrator determines pursuant to Section 7.2 of the Plan in order
to prevent dilution or expansion of the Grantee's rights under these Terms and Conditions as a result of events such as stock
dividends, stock splits or other changes in the capital structure of Occidental, or any merger, consolidation, spin-off, liquidation
or other corporate transaction having a similar effect. If any such adjustment occurs, the Company will give the Grantee written
notice of the adjustment.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="arial" style='font-size:11pt'>(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Administrator may adjust the Performance Goal or other features of
this Grant as permitted by Section 5.2.3 of the Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>8.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>NO EMPLOYMENT CONTRACT.</b> Nothing in these Terms and
Conditions confers upon the Grantee any right with respect to continued employment by the Company, nor limits in any manner the
right of the Company to terminate the employment or adjust the compensation of the Grantee.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>9.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>TAXES AND WITHHOLDING.</b> The Grantee is responsible for any
federal, state, local or foreign tax, including income tax, social insurance, payroll tax, payment on account or other tax-related
withholding with respect to the grant of Target Performance Shares (including the grant, the vesting, the receipt of Common Shares
or cash, the sale of Common Shares and the receipt of dividends or dividend equivalents, if any). If the Company must withhold any
tax in connection with the issuance of any Common Shares or the payment of cash or any other consideration pursuant to the grant of
Target Performance Shares (other than the payment of Dividend Equivalents), the Grantee shall satisfy all or any part of any such
withholding obligation first from any cash amount payable under these Terms and Conditions and second by surrendering to the Company
a portion of the Common Shares that are issued or transferred to the Grantee pursuant to these Terms and Conditions. Any Common
Shares so surrendered by the Grantee shall be credited against the Grantee&#146;s withholding obligation at their Certification Date
Value. If the Company must withhold any tax in connection with granting or vesting of Target Performance Shares or the payment of
Dividend Equivalents pursuant to this grant of Target Performance Shares, the Grantee by acknowledging these Terms and Conditions
agrees that, so long as the Grantee is an employee of the Company for tax purposes, all or any part of any such withholding
obligation shall be deducted from the Grantee&#146;s wages or other cash compensation (including regular pay). The Grantee shall pay
to the Company any amount that cannot be satisfied by the means previously described.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>10.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMPLIANCE WITH LAW.</b> The Company will make reasonable efforts to comply
with all applicable federal, state and foreign securities laws; however, the Company will not issue any Common Shares or other
securities pursuant to these Terms and Conditions if their issuance would result in a violation of any such law.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>3</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>11.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO OTHER BENEFITS.</b> The benefits received by the Grantee under
these Terms and Conditions will not be taken into account in determining any benefits to which the Grantee may be entitled under any
profit sharing, retirement or other benefit or compensation plan maintained by the Company, including the amount of any life
insurance coverage available to any beneficiary of the Grantee under any life insurance plan covering employees of the Company.
Additionally, the Target Performance Shares are not part of normal or expected compensation or salary for any purposes, including,
but not limited to, calculation of any severance, resignation, termination, redundancy, end of service payments, bonuses or
long-service awards. This grant of Target Performance Shares does not create any contractual or other right to receive future grants
of Target Performance Shares, or benefits in lieu of Target Performance Shares, even if Grantee has a history of receiving Target
Performance Shares or other stock awards.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>12.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>AMENDMENTS.</b> The Plan may be modified, amended, suspended or terminated
by the Company at any time, as provided in the Plan. Any amendment to the Plan will be deemed to be an amendment to these Terms and
Conditions to the extent it is applicable to these Terms and Conditions; however, no amendment will adversely affect the rights of
the Grantee under these Terms and Conditions without the Grantee's consent.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>13.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SEVERABILITY.</b> If one or more of the provisions of these Terms and
Conditions is invalidated for any reason by a court of competent jurisdiction, the invalidated provisions shall be deemed to be
separable from the other provisions of these Terms and Conditions, and the remaining provisions of these Terms and Conditions will
continue to be valid and fully enforceable.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>14.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>RELATION TO PLAN; INTERPRETATION.</b> These Terms and Conditions are
subject to the terms and conditions of the Plan. In the event of any inconsistent provisions between these Terms and Conditions and
the Plan, the provisions of the Plan control. Capitalized terms used in these Terms and Conditions without definition have the
meanings assigned to them in the Plan. References to Sections are to Sections of these Terms and Conditions unless otherwise
noted.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>15.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SUCCESSORS AND ASSIGNS.</b> Subject to Sections 2 and 4, the provisions of
these Terms and Conditions shall be for the benefit of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of the Grantee, and the successors and assigns of the Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>16.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GOVERNING LAW.</b> The laws of the State of Delaware govern the
interpretation, performance, and enforcement of these Terms and Conditions.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>17.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>PRIVACY RIGHTS.</b> By accepting this award, the Grantee explicitly and
unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee&#146;s personal data as
described in these Terms and Conditions by and among, as applicable, the Company and its affiliates for the exclusive purpose of
implementing, administering and managing the Grantee&#146;s participation in the Plan.  The Company holds or may receive from any
agent designated by the Company certain personal information about the Grantee, including, but not limited to, the Grantee&#146;s
name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any shares of stock or directorships held in Occidental, details of this Target Performance Share award or any other
entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>4</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>the Grantee&#146;s favor,
for the purpose of implementing, administering and managing the Plan, including complying with applicable tax and securities laws
(&#147;Data&#148;). Data may be transferred to any third parties assisting in the implementation, administration and management of
the Plan. These recipients may be located in the Grantee&#146;s country or elsewhere, and may have different data privacy laws and
protections than the Grantee&#146;s country.  By accepting these Terms and Conditions, the Grantee authorizes the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes described above. The Grantee may,
at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to
Data or refuse or withdraw the consents herein, in any case without cost, by contacting the Administrator in writing. Refusing or
withdrawing consent may affect the Grantee&#146;s ability to participate in the Plan.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>18.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>ELECTRONIC DELIVERY.</b> The Company may, in its sole discretion, decide to
deliver any documents related to this Target Performance Share award granted under the Plan or future awards that may be granted
under the Plan (if any) by electronic means or to request the Grantee&#146;s consent to participate in the Plan by electronic means.
The Grantee hereby consents to receive such documents by electronic delivery and, if requested, to participate in the Plan through
an on-line or electronic system established and maintained by the Company or another third party designated by the
Company.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>19.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>GRANTEE'S REPRESENTATIONS AND RELEASES.</b> By accepting this award, the
Grantee acknowledges that the Grantee has read these Terms and Conditions and understands that (i) the grant of this Target
Performance Share award is made voluntarily by Occidental in its discretion with no liability on the part of any of its direct or
indirect subsidiaries and that, if the Grantee is not an employee of Occidental, the Grantee is not, and will not be considered, an
employee of Occidental but the Grantee is a third party (employee of a subsidiary) to whom this Target Performance Share award is
granted; (ii) the Grantee&#146;s participation in the Plan is voluntary; (iii) the future value of any Common shares issued pursuant
to this Target Performance Share award cannot be predicted and Occidental does not assume liability in the event such Common Shares
have no value in the future; and (iv) subject to the terms of any tax equalization agreement between the Grantee and the entity
employing the Grantee, the Grantee will be solely responsible for the payment or nonpayment of taxes imposed or threatened to be
imposed by any authority of any jurisdiction.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:11pt'>In consideration of the
grant of this Target Performance Share award, no claim or entitlement to compensation or damages shall arise from termination of
this Target Performance Share award or diminution in value of this Target Performance Share award or Common Shares issued pursuant
to this Target Performance Share award resulting from termination of the Grantee&#146;s employment by the Company (for any reason
whatsoever and whether or not in breach of local labor laws) and the Grantee irrevocably releases the Company from any such claim
that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen,
then, by accepting these Terms and Conditions, the Grantee shall be deemed irrevocably to have waived his or her entitlement to
pursue such claim.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>4</font></p>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:11pt'><b>EXHIBIT
1</b></font>
  <br><font face="arial" style='font-size:12pt'><b>2005 Long-Term Incentive Plan</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:14pt'><b>2007 Grant to OxyChem
Participants</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>Performance up to and at
target pays in shares; performance over target pays in cash</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'>(% of Number of Target
Shares of Performance Stock that become Nonforfeitable based on Comparison of Total Stockholder Return for the Peer Companies for
the Performance Period)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>Ranking</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2 Cos.</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1 Co.</b></font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>1</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>2</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>83.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>83.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>75%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>75%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>*</font></p></td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>3</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>66.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>4</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>25%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>5</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>25%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>6</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>33.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>16.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>7</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>16.5%</font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
  <tr>
    <td width="12%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>8</b></font></p></td>
    <td width="11%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>0%</b></font></p></td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="11%">&nbsp;</td></tr>
</table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>*&nbsp;&nbsp;Committee
discretion</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>PLUS</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'>(% of Number of Target
Shares of Performance Stock that become Nonforfeitable based on Return on Assets for the Performance Period)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>Return on
      Assets</b></font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'><b>Payout
      Percentage</b></font></p></td></tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>11%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>100%</font></p></td></tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>9%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>50%</font></p> </td> </tr>
  <tr>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>7%</font></p></td>
    <td width="50%" valign=top>
      <p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:12pt'>0%</font></p></td></tr></table>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>If actual ROA falls between
stated ROA&#146;s, payout percentages will be interpolated.</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'>6</font></p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>19
<FILENAME>ex12-200610k.htm
<DESCRIPTION>EXHIBIT 12
<TEXT>
<html>

<head>
  <title>Exhibit 12</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:10pt'><b>EXHIBIT
12</b></font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'><b>OCCIDENTAL
PETROLEUM CORPORATION AND SUBSIDIARIES</b></font></p>

<p style='margin-top:3pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'><b>COMPUTATION OF
TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES</b>
  <br>(Amounts in millions, except ratios)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>For the
      years ended December 31,</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2006</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2005</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2004</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2003</font></p></td>
    <td width="2%">&nbsp;</td>
    <td colspan="2" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:center;margin-top:24pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2002</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Income
      from continuing operations</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>4,435</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>5,040</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,406</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,559</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,167</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:2.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Add:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Minority
      interest <sup>(a)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>111</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>73</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>75</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>62</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>77</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Adjusted
      income from equity investments <sup>(b)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>(35</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>(50</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>(6</font></p></td>
    <td width="2%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>)</font></p></td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>69</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>308</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>4,511</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>5,063</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>2,475</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,690</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,552</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Add:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:18.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Provision
      (credit) for taxes on income (other than foreign oil and gas taxes)</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,632</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>705</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>976</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>658</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>(49</font></p></td>
    <td width="1%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>)</font></p></td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Interest
      and debt expense <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>292</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>300</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>266</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>335</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>310</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Portion
      of lease rentals representative of the interest factor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>52</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>47</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>40</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>6</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,976</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,052</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,282</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>1,001</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:3.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>267</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Earnings
      before fixed charges</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>6,487</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>6,115</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>3,757</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>2,691</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>1,819</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='text-align:left;margin-top:12.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Fixed
      charges:</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="6%">&nbsp;</td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Interest
      and debt expense including capitalized interest <sup>(c)</sup></font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>347</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>326</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>281</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>341</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>321</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:white 1.0pt solid'>
      <p style='margin-left:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Portion
      of lease rentals representative of the interest factor</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>52</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>47</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>40</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>8</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 1.0pt solid'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>6</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:white 2.25pt double'>
      <p style='margin-left:.25in;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Total
      fixed charges</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>399</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>373</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>321</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>349</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>$</font></p></td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:6.0pt;margin-bottom:0in'><font face="arial narrow,arial" style='font-size:10pt'>327</font></p></td>
    <td width="1%">&nbsp;</td></tr>
  <tr>
    <td width="49%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:left;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>Ratio
      of earnings to fixed charges</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>16.26</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>16.39</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>11.70</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>7.71</font></p></td>
    <td width="2%">&nbsp;</td>
    <td width="2%" style='border-bottom:black 2.25pt double'>&nbsp;</td>
    <td width="6%" valign=bottom style='border-bottom:black 2.25pt double'>
      <p style='text-align:right;margin-top:10.0pt;margin-bottom:2.0pt'><font face="arial narrow,arial" style='font-size:10pt'>5.56</font></p></td>
    <td width="1%">&nbsp;</td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="99%">
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(a)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Represents
      minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(b)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Represents
      income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received.</font></p></td></tr>
  <tr>
    <td width="3%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:9pt'>(c)</font></p></td>
    <td width="97%" valign=top>
      <p style='text-align:justify;margin-top:0pt;margin-bottom:0pt'><font face="arial narrow,arial" style='font-size:10pt'>Includes
      proportionate share of interest and debt expense of less-than-50-percent-owned equity
      investments.</font></p></td></tr></table>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>20
<FILENAME>ex21-200610k.htm
<DESCRIPTION>EXHIBIT 21
<TEXT>
<html>

<head>
  <title>Exhibit 21</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:10pt'><b>EXHIBIT
21</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:10pt'><b>LIST OF
SUBSIDIARIES</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:justify'><font face="arial" style='font-size:10pt'>The following is a list of
the Registrant&#146;s subsidiaries at December 31, 2006, other than certain subsidiaries that did not in the aggregate constitute a
significant subsidiary.</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="65%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Name</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Jurisdiction of
      Formation</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Centurion Pipeline GP,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Centurion Pipeline LP,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Centurion Pipeline
      L.P.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>D. S. Ventures,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Texas</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Glenn Springs Holdings,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>INDSPEC Chemical
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>INDSPEC Holding
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>INDSPEC Technologies,
      Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Pennsylvania</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Ingleside Cogeneration
      GP, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Ingleside Cogeneration
      GP 2, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Ingleside Cogeneration
      Limited Partnership</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Laguna Petroleum
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Texas</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>La Porte Chemicals
      Corp.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>NGL Ventures
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Andina,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Argentina
      Exploration and Production, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Cayman
      Islands</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental (Bermuda)
      Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Chemical
      Chile Limitada</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Chile</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Chemical
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>New
      York</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Chemical
      Holding Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Chemical
      Nevis, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Chile
      Investments, LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Crude Sales,
      Inc. (International)</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental de Colombia,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental del Ecuador,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Dolphin
      Holdings Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Energy
      Marketing, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental International
      Exploration and Production Company</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental International
      Holdings Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental International
      (Libya), Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental International
      Oil and Gas Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Mukhaizna,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental of Elk Hills,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental of Oman,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental of Yemen
      (Block S-1), Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Cayman
      Islands</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Oil and Gas
      Holding Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Oil and Gas
      Pakistan LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental OOOI Holder,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Overseas
      Operations, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Peninsula,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Peninsula II,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Permian
      Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Texas</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Permian
      Manager LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr></table>

<p style='page-break-before:always'></p>

<page>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style='font-size:10pt'><b>EXHIBIT 21</b>
(cont&#146;d.)</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="65%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Name</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom style='border-bottom:black 1.0pt solid'>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Jurisdiction of
      Formation</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Petroleum
      (Pakistan), Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Petroleum
      Investment Co.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Petroleum of
      Qatar Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Power
      Services, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental PVC LP,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Quimica do
      Brasil Ltda.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Brazil</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental
      Transportation Holding Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental VCM
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental VCM LP,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Occidental Yemen
      Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOG Partner
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOOI Chemical
      International, LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOOI Chemical
      Management, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOOI Chile Holder,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOOI Oil and Gas
      Management, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OOOI Oil and Gas Sub,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXYMAR</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Texas</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy CH
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Chemical
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY Dolphin E&amp;P,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Cogeneration Holding
      Company, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY Dolphin Pipeline,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Nevis</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Energy Canada,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Energy Services,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Libya  E&amp;P Area
      106 Ltd.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY Long Beach,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY Oil Partners,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY PBLP Holder,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY PBLP Manager,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Pipeline I
      Company</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY USA
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY USA WTP
      LP</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY VCM,
      LP</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Vinyls Canada
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Canada</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Vinyls,
      LP</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>OXY VPP Investments,
      Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oxy Westwood
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>California</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Permian Basin Limited
      Partnership</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Permian VPP Holder,
      LP</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Permian VPP Manager,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Repsol Occidental
      Corporation</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum,
      LLC</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum
      Boliviana, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Bermuda</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum
      California, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oklahoma</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum
      International, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Oklahoma</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum
      International Holdings, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Delaware</font></p></td></tr>
  <tr>
    <td width="65%" valign=bottom>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Vintage Petroleum South
      America Holdings, Inc.</font></p></td>
    <td width="15%">&nbsp;</td>
    <td width="20%" valign=bottom>
      <p style='text-align:left;margin-left:.5in;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Cayman
      Islands</font></p></td></tr></table>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>21
<FILENAME>ex231-200610k.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<html>

<head>
  <title>Exhibit 23.1</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="arial" style='font-size:11pt'><b>EXHIBIT
23.1</b></font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:center'><font face="times new roman" style='font-size:12pt'><u>Consent of
Independent Registered Public Accounting Firm</u></font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:11pt'>To the Board of
Directors
  <br>Occidental Petroleum Corporation:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.5in;text-align:justify'><font face="times new roman" style='font-size:11pt'>We
consent to the incorporation by reference in the registration statements (Nos. 333-123324, 33-14662, 33-47636, 33-64719, 333-49207,
333-72719, 333-78031, 333-37970, 333-55404, 333-63444, 333-82246, 333-83124, 333-96951, 333-104827, 333-115099 and 333-124732) on
Forms S-3 and S-8 of Occidental Petroleum Corporation of our reports dated February 27, 2007, with respect to the consolidated
balance sheets of Occidental Petroleum Corporation as of December 31, 2006 and 2005, and the related consolidated statements of
income, stockholders&#146; equity, comprehensive income, and cash flows for each of the years in the three-year period ended
December 31, 2006 and the related financial statement schedule, management&#146;s assessment of the effectiveness of internal
control over financial reporting as of December 31, 2006 and the effectiveness of internal control over financial reporting as of
December 31, 2006, which reports appear in the December 31, 2006 annual report on Form 10-K of Occidental Petroleum Corporation. Our
report on the financial statements of Occidental Petroleum Corporation refers to (i) a change in the method of accounting for
defined benefit pension and other postretirement plans (effective December 31, 2006), and (ii) a change in the method of accounting
for share-based payments (effective July 1, 2005).</font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'>&nbsp;</p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="times new roman" style='font-size:11pt'>Los Angeles,
California
  <br>February 27, 2007</font></p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>22
<FILENAME>ex232-200610k.htm
<DESCRIPTION>EXHIBIT 23.2
<TEXT>
<html>

<head>
  <title>Exhibit 23.2</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:12pt;margin-bottom:0pt;text-align:right'><font face="times new roman" style="font-size:11pt"><b>EXHIBIT
23.2</b></font></p>

<p style='margin-top:64pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:12pt'><b>EXPERT
CONSENT</b></font></p>

<p style='margin-top:24pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>The Board of Directors
  <br>Occidental Petroleum Corporation:</font></p>

<p style='text-indent:0.5in;margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:12pt'>We
consent to the inclusion in the Occidental Petroleum Corporation (Occidental) Form 10-K for the year ended December 31, 2006, and
the incorporation by reference in Occidental&#146;s registration statements (Nos. 33-14662, 33-47636, 33-64719, 333-49207,
333-72719, 333-78031, 333-37970, 333-55404, 333-63444, 333-82246, 333-83124, 333-96951, 333-104827, 333-115099, 333-124732 and
333-123324), of references to our name and to our letter dated February 9, 2007, relating to our review of the procedures and
methods used by Occidental in its oil and gas estimation process.</font></p>

<p style='margin-left:4in;margin-top:12pt;margin-bottom:0pt;text-align:left'><img src="ryderscott.gif"></p>

<p style='margin-left:4in;margin-top:6pt;margin-bottom:0pt;text-align:left'><font face=arial style='font-size:12pt'><b>RYDER SCOTT
COMPANY, L.P.</b></font></p>

<p style='margin-top:48pt;margin-bottom:0pt;text-align:left'><font face=arial style='font-size:12pt'>Houston, Texas
  <br>February 9, 2007</font></p>

</body>

</html>

</TEXT>
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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>24
<FILENAME>ex311-200610k.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<html>

<head>
  <title>Exhibit 31.1</title>
</head>

<body bgcolor="#ffffff">

<p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>EXHIBIT 31.1</b></font></p>

<p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>RULE 13a &#150; 14(a) /
15d &#150; 14 (a)
  <br>CERTIFICATION
  <br>PURSUANT TO &sect;302 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>I, Ray R. Irani, certify
that:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>1.&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this annual report on Form 10-K of Occidental Petroleum Corporation;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>2.&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>3.&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
this report;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>4.&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(a)&nbsp;&nbsp;&nbsp;Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(b)&nbsp;&nbsp;&nbsp;Designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(c)&nbsp;&nbsp;&nbsp;Evaluated
the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such
evaluation; and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(d)&nbsp;&nbsp;&nbsp;Disclosed
in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over financial reporting; and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>5.&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons
performing the equivalent functions):</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(a)&nbsp;&nbsp;&nbsp;All
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(b)&nbsp;&nbsp;&nbsp;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.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>Date: February 27,
2007</font></p>

<table cellpadding=0 cellspacing=0 border=0 width="100%">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%" style='border-bottom:black 1.0pt solid'>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>/s/ RAY R.
      IRANI</font></p></td></tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>Ray R. Irani
        <br>Chairman of the Board of Directors, President and
        <br>Chief Executive Officer</font></p></td></tr></table>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>25
<FILENAME>ex312-200610k.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<html>

<head>
  <title>Exhibit 31.2</title>
</head>

<body bgcolor="#ffffff">

<p style='text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>EXHIBIT
31.2</b></font></p>

<p style='text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'><b>RULE 13a &#150; 14(a) /
15d &#150; 14 (a)
  <br>CERTIFICATION
  <br>PURSUANT TO &sect;302 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>I, Stephen I. Chazen, certify
that:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>1.&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this annual report on Form 10-K of Occidental Petroleum Corporation;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>2.&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the
period covered by this report;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>3.&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
this report;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>4.&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(a)&nbsp;&nbsp;&nbsp;Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(b)&nbsp;&nbsp;&nbsp;Designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(c)&nbsp;&nbsp;&nbsp;Evaluated
the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such
evaluation; and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(d)&nbsp;&nbsp;&nbsp;Disclosed
in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over financial reporting; and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>5.&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons
performing the equivalent functions):</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(a)&nbsp;&nbsp;&nbsp;All
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
and</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-indent:0.25in;text-align:left'><font face="arial" style='font-size:10pt'>(b)&nbsp;&nbsp;&nbsp;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.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>Date: February 27,
2007</font></p>

<table cellpadding=0 cellspacing=0 border=0 width="100%">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%" style='border-bottom:black 1.0pt solid'>
      <p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>/s/ STEPHEN I.
      CHAZEN</font></p></td></tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">
      <p style='margin-top:0pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>Stephen I. Chazen
        <br>Senior Executive Vice President and
        <br>Chief Financial Officer</font></p></td></tr></table>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>26
<FILENAME>ex321-200610k.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
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<head>
  <title>Exhibit 32.1</title>
</head>

<body bgcolor="#ffffff">

<p style='margin-top:0pt;margin-bottom:0pt;text-align:right'><font face="arial" style='font-size:10pt'><b>EXHIBIT
32.1</b></font></p>

<p style='margin-top:0pt;margin-bottom:0pt;text-align:center'><font face="arial" style='font-size:10pt'><b>CERTIFICATION OF CEO AND
CFO PURSUANT TO
  <br>18 U.S.C. &sect; 1350,
  <br>AS ADOPTED PURSUANT TO
  <br>&sect; 906 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>In connection with the
Annual Report on Form 10-K of Occidental Petroleum Corporation (the &#147;Company&#148;) for the fiscal period ended December 31,
2006, as filed with the Securities and Exchange Commission on February 27, 2007 (the &#147;Report&#148;), Ray R. Irani, as Chief
Executive Officer of the Company, and Stephen I. Chazen, as Chief Financial Officer of the Company, each hereby certifies, pursuant
to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his
knowledge:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="10%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>(1)</font></p></td>
    <td width="90%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>The Report fully
      complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p></td></tr>
  <tr>
    <td width="10%" valign=top>
      <p style='text-align:center;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>(2)</font></p></td>
    <td width="90%" valign=top>
      <p style='text-align:left;margin-top:12pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>The information
      contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the
      Company.</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="40%">
  <tr>
    <td width="100%" style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:24pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>/s/ RAY R.
      IRANI</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Name:</font></p></td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Ray R.
      Irani</font></p></td></tr>
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Title:</font></p></td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Chairman of the Board of
      Directors, President and Chief Executive Officer</font></p></td></tr>
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Date:</font></p> </td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>February 27,
      2007</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="40%">
  <tr>
    <td width="100%" style='border-bottom:black 1.0pt solid'>
      <p style='text-align:left;margin-top:36pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>/s/ STEPHEN I.
      CHAZEN</font></p></td></tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%">
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Name:</font></p></td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Stephen I.
      Chazen</font></p></td></tr>
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Title:</font></p></td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Senior Executive Vice
      President and Chief Financial Officer</font></p></td></tr>
  <tr>
    <td width="8%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>Date:</font></p> </td>
    <td width="92%" valign=top>
      <p style='text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="arial" style='font-size:10pt'>February 27,
      2007</font></p></td></tr></table>

<p style='margin-top:36pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>A signed original of this
written statement required by Section 906 has been provided to Occidental Petroleum Corporation and will be retained by Occidental
Petroleum Corporation and furnished to the Securities and Exchange Commission or its staff upon request.</font></p>

<p style='margin-top:12pt;margin-bottom:0pt;text-align:left'><font face="arial" style='font-size:10pt'>This certification
accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the
Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended.</font></p>

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</TEXT>
</DOCUMENT>
</SUBMISSION>
