Occidental Petroleum Corporation 2006 Annual Report

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Selected Financial Data

Dollar amounts in millions, except per-share amounts

For the years ended December 31, 2006 2005 2004 2003 2002

Results of Operations (a)

Net sales $17,661 $ 14,597 $ 10,879 $ 9,020 $ 7,149

Income from continuing operations 4,435 5,040 2,406 1,559 1,167

Net income 4,182 5,281 2,568 1,527 989

Basic earnings per common share

from continuing operations 5.20 6.25 3.04 2.03 1.55

Basic earnings per common share 4.90 6.55 3.24 1.99 1.31

Diluted earnings per common share 4.86 6.45 3.20 1.97 1.30

Core earnings (b) 4,349 3,732 2,299 1,599 1,003

Financial Position (a) Total assets 32,355 26,108 21,391 18,168 16,548

Long-term debt, net and

trust preferred securities (c) 2,619 2,873 3,345 4,446 4,452

Stockholders’ equity 19,184 15,032 10,550 7,929 6,318

Market Capitalization 42,515 32,129 23,153 16,349 10,750

Cash Flow

Cash provided by operating activities 6,353 5,337 3,878 3,074 2,100

Capital expenditures (3,005) (2,324) (1,720) (1,523) (1,145)

Cash used by all other investing activities, net (1,378) (837) (708) (608) (551)

Dividends Per Common Share $ 0.80 $ 0.645 $ 0.55 $ 0.52 $ 0.50

Basic Shares Outstanding (thousands) 852,550 806,600 791,159 767,887 752,380

(a) See the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&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.

(b) For an explanation of core earnings and reconciliation to net income, see “Significant Items Affecting Earnings” in the MD&A section of this report.

(c) On January 20, 2004, Occidental redeemed the trust preferred securities.

Portions of this report 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,” “believe,” “will,” “anticipate,” “plan,” “intend” and “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 expressly disclaims any obligation to publicly update or revise any forward-looking statements, as a result of new information, future events or otherwise. The United States Securities and Exchange Commission (SEC) permits oil and natural gas companies, in their filings with the SEC, to disclose only proved reserves demonstrated by actual production or conclusive formation tests to be economically producible under existing economic and operating conditions. We use certain terms in this report, such as estimated proved reserves, probable, possible and recoverable reserves and oil in place, that the SEC’s guidelines strictly prohibit us from using in filings with the SEC. Additionally, the SEC requires oil and natural gas companies, in their filings, to disclose non-financial statistical information about their consolidated entities separately from such information about their equity holdings and not to show combined totals. Certain information in this report is shown on a combined basis; however, the information is disclosed separately in the “Notes to the Consolidated Financial Statements” included in the 2006 Annual Report on Form 10-K included in this report.

ON THE COvER: The illustration is a depiction of a multilateral horizontal well. Horizontal wells enable Oxy to produce concurrently from multiple intervals off a single well bore.

Occidental Petroleum Corporation (NYSE: OXY) is a world leader in oil and natural gas exploration and production, and a major North American chemical manufacturer.

Oxy in Brief

With oil and natural gas operations in the United States, the Middle East/ North Africa region and Latin America, Occidental is helping to meet the world’s energy needs. In the United States, Occidental is the largest oil producer in Texas and the largest natural gas producer in California, with additional operations in Kansas, Oklahoma and New Mexico. Occidental also has an interest in a single non-operated property in the Gulf of Mexico.

In the Middle East/North Africa, Occidental has assets in Libya, Oman, Qatar, Yemen and is a partner in the transborder Dolphin Project that will supply natural gas from Qatar to markets in the United Arab Emirates and Oman. Our Latin American

operations include producing assets in Argentina, Bolivia and Colombia. The company also has producing assets in Pakistan.

Occidental Chemical Corporation (OxyChem) manufactures vinyls and performance chemicals in addition to chlorine and caustic soda — the building blocks for such indispensable products as pharmaceuticals, water disinfectants, detergents and others.

Worldwide, Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding the highest standards of social responsibility.

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3

4

6

7

8

9

5

10 11

1213 141. Elk Hills 2. Long Beach 3. Hugoton 4. Permian Basin 5. Horn Mountain 6. Colombia 7. Bolivia 8. Argentina 9. Libya 10. Yemen 11. Oman12. United Arab Emirates 13. Qatar 14. Pakistan

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Dr. Ray R. IraniChairman, President and Chief Executive Officer

Net Income $ in Billions

4.2

5.3

2.6

1.5

2003

2004

2005

2006

0.000000

0.757144

1.514287

2.271431

3.028574

3.785718

4.542861

24

41

28

21

2003

2004

2005

2006

Return onEquityStated as Percent

0.000000

5.857148

11.714295

17.571443

23.428591

29.285738

35.142886

10.000000

13.285717

16.571434

19.857151

23.142868

26.428585

29.714302

21

33

20

15

2003

2004

2005

2006

Return on CapitalEmployed*Stated as Percent

2006 �nnual Report to Stockholders

In my reports to you during the past five years, I have emphasized the strategic steps we have taken to strengthen our financial and operational performance. The execution of our strategy to balance near-term profitability with long-term growth has positioned the company to capitalize on strong energy prices to generate a growing stream of income and cash flow, and secure new investment opportunities. As a result, our performance in 2006 again ranked among the strongest in the oil and gas industry as demonstrated by a series of key metrics that we believe best measure comparative financial performance.

* ROCE is earnings before interest expense and tax effect of interest expense over stockholders’ equity plus average total debt.

2

0.000000

5.285719

10.571437

15.857156

21.142874

26.428593

31.714312

37

27

1713

2003

2004

2005

2006

Debt-to-CapitalizationRatioStated as Percent

0.000000

0.657143

1.314287

1.971430

2.628574

3.285717

3.942860

2.93.0

3.9

4.6

2003

2004

2005

2006

Total Debt$ in Billions

0.000000

2.742859

5.485719

8.228578

10.971438

13.714297

16.457157

19.2

15.0

10.6

7.9

2003

2004

2005

2006

Stockholders’Equity$ in Billions

Market PerforMance

After adjusting for a two-for-one stock split in August 2006, Occidental’s year-end closing stock price of $48.83 per share was the highest year-end stock price in the company’s history and 22 percent higher than the previous year-end record of $39.94 set in 2005. Our 2006 total return to stockholders, based on stock price appreciation plus dividend reinvest-ment, was 24 percent. Over the past five years, Occidental’s total return to stockholders of 315 percent substantially outperformed the total returns of 195 percent recorded by the Standard & Poor’s 500 Oil and Gas Exploration & Production Index and 125 percent by the Standard & Poor’s 500 Oil and Gas Integrated Index.

financial PerforMance

Consolidated net income was nearly $4.2 billion compared to the $5.3 billion we earned in 2005. Core income, which excludes special items, rose to an all-time high of $4.3 billion. Cash flow from operations was approximately $6.4 billion. In addition, we received total proceeds of $1 billion from the sale of non-core properties that were part of Vintage Petroleum, which we acquired early in the year.

We also received $250 million from the sale of 10 million shares of our investment in Lyondell Chemical Company. We used $3 billion of our cash flow to fund our 2006 capital program, used $2.5 billion for acquisitions and $1.5 billion to repurchase 30.6 million shares of Occidental common stock. We also paid off $895 million of debt, including debt assumed as part of the Vintage acquisition, and we paid dividends totaling $645 million. At year-end 2006, Occidental had approximately $1.6 billion of cash and short-term investments on hand.

We also increased the annual dividend rate by 24 percent, which was the fifth increase since 2002. The board of directors will continue to evaluate the dividend policy in keeping with our commitment to generate top quartile total returns for our stockholders.

During 2006, our return on capital employed was 21 percent, and the three-year average from 2004 through 2006 was 25 percent. Our return on equity in 2006 was 24 percent, and the three-year average was 30 percent. During the same three-year period, our stockholders’ equity grew by 142 percent—from $7.9 billion to $19.2 billion.

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The improvement was mainly the result of higher crude oil prices and combined oil and gas volumes. Oil and gas income on a barrel of oil equivalent (BOE) basis—after taxes and before interest expense—was $20.51, which we believe will place Occidental in the top quartile among large capitalization oil and gas industry peers for the eighth consecutive year.

Worldwide oil and natural gas production averaged 601,000 BOE per day in 2006, which is 14 percent higher than the 2005 average production of 526,000 BOE per day. Our oil and gas production for the fourth quarter 2006 averaged a quarterly record high of 616,000 BOE per day, up 5 percent from the third quarter and 13 percent from the fourth quarter 2005.

Last year, we continued adding proved oil and gas reserves at a pace well ahead of production. In 2006, we produced approximately 219 million BOE while adding 511 million BOE of proved reserves from all sources. At year-end 2006, Occidental’s total proved reserves from all sources rose to 2.9 billion BOE. The United States accounted for 72 percent of our total proved reserves followed by the Middle East with 18 percent, Latin America with 9 percent and 1 percent for other operations.

United States

Combined United States oil and natural gas production, which accounted for 61 percent of total worldwide production, increased to an average of 367,000 BOE per day, a 6-percent increase compared to 2005. The largest operation is in the Permian Basin of west Texas and south-eastern New Mexico and accounted for an average of 199,000 BOE per day, or 33 percent of our daily worldwide production.

Production from California averaged about 129,000 BOE per day, which was 21 percent of the world-wide total.

The assets we acquired from Vintage Petroleum in California, Argentina and Yemen were an excellent strategic fit with our existing core operations. The September acquisition of oil and gas producing properties from Plains Petroleum further strength-ened Occidental’s operations in California and the Permian Basin. These 2006 acquisitions are part of our business strategy to achieve profitable growth by focusing on large, long-lived assets in our core geographic areas.

Middle East/North Africa

Occidental’s net 2006 production from our Middle East/North Africa operations increased by 15 percent, compared in 2005 to an average of 118,000 BOE per day, and accounted for 20 percent of our total worldwide production.

The primary factor accounting for the increase was a full year’s worth of production from our historic contract areas in the prolific Sirte Basin in Libya, compared to four months of production in 2005. Occidental’s net production from Libya averaged 23,000 BOE per day in 2006, compared to an average of 8,000 BOE per day in 2005. We continue to hold discussions with Libyan officials about the potential to increase production from these and other producing fields through the application of innovative enhanced recovery techniques.

Our success in winning nine new exploration blocks in the EPSA-IV oil and gas licensing round in Libya in January 2005 has been followed by the most extensive seismic data acquisition program in the

Oil and Gas

oPerations PerforMance

For the third consecutive year, oil and gas segment income set a new record. Oil and gas earnings of $7.239 billion were 21 percent higher than the $5.968 billion this segment earned in 2005.

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The Permian Basin is a showcase for Oxy’s world-class Enhanced Oil Recovery (EOR) expertise. Through emphasis on advanced technology, reservoir manage- ment and a cost-effective capital program, Oxy has minimized the production decline from this mature field.Pictured above is Oxy’s Permian Basin Denver City unit.

Pictured at left is Oxy’s Permian Basin unit in Hobbs, New Mexico. Oxy’s Permian Basin assets, which span 2 million acres of west Texas and a portion of New Mexico, account for about a third of Oxy’s worldwide net production.

In 2006, Oxy acquired Vintage Petroleum with primary assets in California and Argentina. Pictured at right is one of the Argentina properties. Through aggressive drilling, waterflooding and EOR projects, Oxy expects to ramp up production from these newly acquired assets.

Formerly a U.S. Naval Petroleum reserve, Oxy’s Elk Hills operation in central California is the seventh largest oil field in the continental United States. Elk Hills helps make Oxy the largest natural gas producer and the third largest oil producer in California.

Oil & Natural Gas ProductionThousand BOE/Day

2006

234367

InternationalU.S.

601

2005

181345

526

2004

181339

520

2002

176326

502

2003

177345

522

Oil & Natural Gas Proved ReservesMillion BOE

2002

2,208

4531,755

2003

2,365

5601,805

2004

2,428

5841,844

2005

2,611

5852,026

2006

2,899

8142,085

InternationalU.S.

Oxy’s Long Beach, California operations are an example of the company’s success in increasing reserves and maximizing production from mature fields. Visitors to this beachside community are often unaware that the harbor’s resort-looking islands are oil and gas production facilities.

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company’s history. Occidental is the operator and holds a 90-percent exploration working interest in onshore Blocks 106 and 124 in the Sirte Basin, Blocks 131 and 163 in the Murzuk Basin and Block 59 in the Cyrenaica Basin. Occidental also holds a 35-percent exploration working interest in offshore Blocks 35, 36, 52 and 53. Occidental’s total exploration and production acreage in Libya encompasses an area of approximately 130,000 square kilometers, making Occidental the largest net holder of oil and gas acreage in the country.

Occidental and its partners have thus far accumulated seismic data covering 20,000 kilometers. Plans are in place to gather data spanning an additional 6,000 kilometers. Our ongoing analysis of the seismic data has already led to the identification of a number of attractive prospects and we have just begun an extensive drilling program.

Since July 2005, when the Sultanate of Oman awarded Occidental a 45-percent working interest in a contract to operate one of the largest oil fields in Oman, work in the Mukhaizna field has been moving forward according to plan. Occidental and its partners plan to implement a large-scale steam flood to increase production to approximately 150,000 barrels per day within the next few years and to recover approximately 1 billion barrels of oil over the life of the project. During 2006, Occidental drilled a total of 40 wells in the Mukhaizna field, and is on track to reach its objectives.

The Dolphin Project, the premier transborder natural gas project in the Middle East, made significant progress in 2006. Construction was completed on all the project’s upstream and downstream compo-nents by year-end except the giant gas processing plant located at Ras Laffan in Qatar. The project involves the initial development of approximately two billion cubic feet per day of natural gas from Qatar’s giant North Field. The processed gas will be transported from Ras Laffan through a 48-inch diameter, 260-mile long pipeline to supply power

and water desalination markets in the United Arab Emirates and Oman. Occidental has a 24.5-percent interest in this mega project.

Qatar remains our largest operation in the Middle East/North Africa. Our net production in Qatar of 43,000 barrels per day in 2006 accounted for more than one-third of our total production for the region.

Latin America

Our production in Latin America averaged approxi-mately 76,000 BOE per day, which made up 13 percent of our total worldwide production.

The acquisition of Vintage Petroleum’s operations in Argentina contributed significantly to Occidental’s 2006 Latin American production. Occidental’s share of production from the Argentina operations averaged approximately 39,000 BOE per day, on an annualized basis, for the 11 months the company held the properties. The integration of the former Vintage assets into our operations has largely been completed. We are excited by the large number of opportunities to increase production in Argentina, and we are moving forward with plans for the accelerated development of these assets.

In Colombia, we completed our evaluation of a multiphase enhanced recovery project in the La Cira Infantas field and we are moving forward with plans for the full development of the field in cooperation with Ecopetrol, Colombia’s state oil company. At full development, this project has the potential to recover approximately 80 million net barrels of reserves for Occidental, with net production increasing to 20,000 BOE per day in 2010.

Occidental’s production in Latin America was adversely impacted by the seizure of the company’s operations in Ecuador. Occidental has filed a claim against Ecuador with an agency of the World Bank in Washington, DC seeking redress for the illegal confiscation of our assets without compensation.

Oxy’s massive seismic surveying project is underway in Libya, where vast areas both onshore and offshore are under explored. Oxy moved quickly once sanctions were lifted, successfully bidding on nine exploration blocks. The Libya Exploration Program is the largest in Oxy’s history.

Oil and Gas

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Our chemical segment core earnings of $901 million were the highest level achieved in more than a decade and exceeded our 2005 results by 16 percent. Demand for our major products remained strong across most sectors of the economy, including construction, for much of the year. Sales volumes also were sustained by the need to rebuild downstream inventories following the hurricanes in late 2005 and concerns about the potential for similar supply disruptions in 2006. In addition, we continued to benefit from the operation of assets acquired from Vulcan Materials Company in mid-2005 and have realized substantial synergies after the first full year following the integration of these assets. Overall chemical performance was driven by generally strong demand that resulted in healthy margins for our key products.

Consistent with our focus on continued improvement in our assets and on health, environment and safety, OxyChem began a project to convert its membrane cell chlor-alkali plant at Taft, Louisiana to potassium hydroxide. The project, when complete in early 2008, will not only improve our cost position, but also will eliminate the last of our mercury cell production facilities in the United States.

Chemicals

Oxy’s chemical subsidiary, OxyChem, is a leading North American manufacturer of vinyls, chlorine and caustic soda—the building blocks for such products as pharmaceuticals, water disinfectants and plastics. Based in Dallas, Texas, OxyChem has manufacturing facilities in the United States, Canada, Brazil and Chile. Pictured top left is OxyChem’s Ingleside, Texas plant; left, employees pose at OxyChem’s plant in Talcahuano, Chile. Below left is the control room at OxyChem’s Taft, Louisiana plant.

1998

1997

1999

2000

2001

2002

2003

2004

2005

2006

7.10 6.70 6.30 6.100.73 0.68 0.65 0.83

5.70 5.30 5.00 4.800.69 0.62 0.68 0.34

4.600.47 0.47

Average of all U.S. industries Occidental

Employee Recordable Injury & Illness Trend* Rate Per 100 Employees

* The US industry data for 2006 are not yet available.

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Clean, efficient and reliable energy supplies are critical to the growth and development of the global economy. Occidental is committed to finding and developing the oil and natural gas necessary to fuel economic growth while upholding high standards of social responsibility, protecting the environment and safeguarding the health and safety of our employees, our neighbors and our customers.

Safety is a top priority for Occidental. In 2006, we maintained our excellent safety record. Our 2006 Employee Injury and Illness Incidence Rate (IIR—recordable injuries and illnesses per 100 worker years) was 0.47, the same as our 2005 rate. We are proud that we have been able to maintain consistently low IIR rates while simultaneously meeting the challenge of integrating two significant oil and gas acquisitions into our operations. We are working diligently to implement enhanced safety and environmental standards into these new operations.

Incidents are thoroughly investigated and Occidental’s safety programs evolve to meet the changing needs of our business as we grow. Occidental also maintains a strong health, environment and safety risk manage-ment and mitigation program, with results regularly reviewed by senior management.

Building on our history of strong environmental stewardship, Occidental Oil and Gas Corporation joined the new U.S. EPA-sponsored Natural Gas Star International program. Participation will provide a recognized forum to document and present the significant reductions in methane emissions that have been achieved in Occidental’s international

assets, primarily by capturing natural gas for sale. Occidental Oil and Gas was recognized by U.S. EPA as its International Partner of the Year for the Natural Gas Star program.

We recognize that an important part of our effort to find and develop new oil and natural gas resources is evaluating how these activities impact local communities. Maximizing the social, environmental and safety benefits of our activities while minimizing any negative impacts is our goal. In 2004, Occidental’s Board of Directors adopted a comprehensive Human Rights Policy to restate and reinforce the company’s commitment to respect and promote human rights. Since then, we have made excellent progress in advancing the policy. More than 2,000 employees, including most of the employees from our new operations in Argentina, Colombia, Libya and Oman have participated in human rights training courses. The training is required for all Occidental managers, security employees and contractors and new employees in our international operations.

The policy also requires social impact assessments in new work areas in non-U.S. locations. So far, assessments have been initiated in Oman, Libya, Yemen, Colombia and Argentina. In Colombia, Occidental collaborated with Ecopetrol and International Alert, a London-based Human Rights group, to introduce a new, comprehensive risk matrix, which has proven to be helpful in evaluating potential impacts of oil field operations on local communities.

In addition, our oil and gas business units are incorporating auditable social responsibility standards into the company’s Health, Environment and Safety Management Systems to help ensure our programs are fully integrated into our daily business practices.

Occidental recognizes that responsible social, environmental and safety practices are critical to strong financial performance, and we strive to be a socially responsible corporate citizen.

Corporate Social Responsibility

In September 2005, Oxy took over operations of the Mukhaizna field, one of the largest in Oman. Oxy and its partners are implementing a drilling and development program including a massive steam flood project.

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Looking �head

Another priority is continued growth in our existing core areas. We plan to aggressively pursue the exploitation of properties we acquired in California and Argentina in 2006 from Vintage and Plains through a combination of primary drilling and EOR projects. We expect to continue with our consolida-tion initiatives in Texas and California. In addition, we have a large inventory of EOR projects in the Permian Basin of Texas and New Mexico where we expect to offset moderate decline rates and keep production stable.

We expect the Dolphin Project to become fully operational around mid-year 2007, with gross production ramping up to 2 billion cubic feet per day by year-end.

We expect to drill between 14 and 16 exploration wells in Libya this year, with 10 to 12 wells onshore and the remaining four offshore. This focused effort

is the most extensive exploration initiative in Occidental’s history and we are excited by the quality of the prospects.

Also, we are working on a number of new, high potential projects in the Middle East and North Africa. We expect to announce success in winning additional projects this year.

We are confident we can keep our combined oil and gas production growing at a sustainable annual rate of 5 to 8 percent through 2010. Growth will come from the company’s Argentina assets, the giant Dolphin gas project in Qatar and the United Arab Emirates and the Mukhaizna EOR project in Oman and Libya.

This production outlook does not depend on new exploration success, new EOR projects or new acquisitions. However, we clearly hope that success in these areas will further enhance our outlook for sustained growth.

The Dolphin Project’s giant 1 by 2 kilometer gas plant under construction in Qatar will process natural gas produced in Qatar’s North Field. Oxy has a 24.5-percent interest in Dolphin Energy Limited with this project, which is one of the largest energy projects to be undertaken in the Middle East.

While we are pleased with our progress in 2006, we are focused on the future to make sure that we grow stronger in 2007 and beyond. World energy demand is growing rapidly. With very little excess capacity, energy prices are likely to remain high and volatile. These factors will continue to drive investment across the energy sector. We plan to grow by building on our strengths and participating in new investment opportunities. One of our most important priorities is to add another core growth area to keep our new project inventory full of high return projects.

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In January 2007, we sold our 50-percent interest in the Vanyoganneft joint venture in western Siberia for approximately $485 million. We recorded a gain of approximately $400 million in the first quarter of 2007. This transaction reduces our risk profile and provides additional cash to support our initiatives to enhance stockholder value in 2007 and beyond.

Maintaining financial discipline and flexibility remains a key part of our strategy. We will continue to look for opportunities to use our free cash flow to enhance stockholder value by maintaining a strong balance sheet, expanding our share repurchase program and investing for growth. We expect capital expenditures to rise by approximately $400 million in 2007, from $3 billion in 2006 to $3.4 billion in 2007, for an increase of 13 percent.

We will assess the potential of using the excess cash from operations to fund new projects, repurchase additional shares and make strategic acquisitions. Our decisions will be driven by our commitment to maximize value for our stockholders.

We believe our employees are second-to-none. They are the most critical factor in the successful execution of our growth strategy. As we strive to achieve higher levels of performance, we are broadening our recruiting efforts to attract the most highly skilled and dedicated people.

We are committed to achieving superior financial and operational results, while adhering to the highest standards of ethical behavior, maintaining a safe and healthy work place and serving as a responsible steward of the environment. We are focused on the fundamentals of the business, including optimizing profits and free cash flow per BOE, keeping finding and development costs competitive, growing oil and gas reserves at a rate well in excess of production and maintaining financial discipline. Focusing on these fundamentals should keep our returns on equity and capital employed in the top quartile—and ultimately generate top quartile total returns for our stockholders. This formula, which has served us well in the past, will continue to drive our performance in the future.

Under the stewardship of our board of directors and strong management team, we believe we have established a solid foundation for future growth and profitability. Our stockholders have high expectations, and we are committed to meeting those expectations.

Dr.RayR.Irani Chairman, President and Chief Executive Officer

Oxy began exploring Oman’s Safah field in 1983 and discovered this 300-million-barrel field a year later. Through EOR success, extensive 3-D seismic surveying and an 85-percent exploration drilling success rate, Oxy has increased its production, reserves and scope of operations over its 20+ year tenure in Oman.

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Board and Officers

Board of directors

Dr. Ray R. Irani1,8

Chairman, President and Chief Executive Officer, Occidental Petroleum Corporation

Spencer �braham3,4,7

Chairman and Chief Executive Officer, The Abraham Group, LLC; former U.S. Secretary of Energy

Ronald W. Burkle8

Managing Partner, The Yucaipa Companies

John S. Chalsty1,2,3,5,8

Principal, Muirfield Capital Management LLC; former Chairman, Donaldson, Lufkin & Jenrette, Inc.

Edward P. Djerejian4,5,7

Director, James A. Baker III Institute for Public Policy; former U.S. Ambassador

R. Chad Dreier2,3

Chairman, President and Chief Executive Officer, The Ryland Group, Inc.

John E. Feick1,2,4,8

Chairman, Matrix Solutions Inc.

Irvin W. Maloney1,2,3,7

Retired Chairman and Chief Executive Officer, Dataproducts Corporation

Rodolfo Segovia1,3,4,5,7

Member of the Executive Committee, Inversiones Sanford; former President, Ecopetrol — Colombian national oil company

�ziz D. Syriani1,2,5,6,8

President and Chief Executive Officer, The Olayan Group

Rosemary Tomich1,2,3,4,5,7

Owner, Hope Cattle Company and A.S. Tomich Construction Company; Chairman and Chief Executive Officer, Livestock Clearing, Inc.

Walter L. Weisman4,5,8

Private investor; former Chairman and Chief Executive Officer, American Medical International, Inc.

1 Member of the Executive Committee 2 Member of the Audit Committee 3 Member of the Executive Compensation

and Human Resources Committee4 Member of the Environmental, Health,

and Safety Committee5 Member of the Corporate Governance, Nominating and

Social Responsibility Committee6 Lead Independent Director7 Member of the Charitable Contributions Committee8 Member of the Dividend Committee

officers

Dr. Ray R. IraniChairman, President and Chief Executive Officer

Stephen I. ChazenSenior Executive Vice President and Chief Financial Officer

Executive vice Presidents

Donald P. de BrierExecutive Vice President, General Counsel and Secretary

Richard W. HallockExecutive Vice President — Human Resources

James M. LienertExecutive Vice President — Finance and Planning

John W. MorganExecutive Vice President; President, Oxy Oil and Gas — Western Hemisphere

R. Casey OlsonExecutive Vice President; President, Oxy Oil and Gas — Eastern Hemisphere

vice Presidents and Key Executives

B. Chuck �ndersonPresident, OxyChem

James R. HavertVice President and Treasurer

Jim �. LeonardVice President and Controller

Robert M. McGeeVice President — Government Relations

Lawrence P. MeriageVice President — Communications and Public Affairs

Donald L. Moore, Jr.Vice President and Chief Information Officer

Roy PineciVice President — Internal Audit

Christopher G. StavrosVice President — Investor Relations

Todd �. StevensVice President — Acquisitions and Corporate Finance

Michael S. StuttsVice President — Tax; Chief Tax Counsel

Richard �. SwanVice President — Health, Environment and Safety

As of December 31, 2006Bak

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auditors

KPMG LLP Los Angeles, California

transfer agent and registrar

Mellon Investor Services LLC Shareholder Relations Newport Office Center VII 480 Washington Boulevard Jersey City, New Jersey 07310 (800) 622-9231 www.melloninvestor.com/isd

stock exchange listing

Common Stock New York Stock Exchange (NYSE)

dividend reinvestMent Plan

Occidental stockholders owning 25 or more shares of common or preferred stock registered in their name are eligible to purchase additional shares of common stock under the Dividend Reinvestment Plan by investing dividends on a minimum of 25 shares and optional cash payments of up to $10,000 per month. Information may be obtained from: Mellon Investor Services LLC at www.melloninvestor.com.

corPorate headQuarters

10889 Wilshire Boulevard Los Angeles, California 90024-4201 310.208.8800 www.oxy.com

investor relations

1230 Avenue of the Americas 8th Floor, Suite 800 New York, New York 10020-1508 (212) 603-8111 investorrelations_newyork@oxy.com

stockholder relations

10889 Wilshire Boulevard Los Angeles, California 90024-4201 (310) 443-6459

annual certifications

Occidental has filed the certifications of the chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1 and 31.2 to its 2006 Annual Report on Form 10-K filed with the Securities and Exchange Commission. In addition, in 2006, Occidental submitted to the NYSE a certificate of the chief executive officer stating that he is not aware of any violation by the company of the NYSE corporate governance listing standards.

current news and general inforMation

Information about Occidental, including press releases, is available on the Internet at www.oxy.com. In addition, our investor package is available by calling toll-free 1-888-OXYPETE; (1-888-699-7383).

additional PuBlications availaBle to stockholders

The Health, Environment, Safety and Social Responsibility Report, and Occidental’s Corporate Governance Principles are available upon request by writing to Occidental, and at www.oxy.com.

oil and gas

Occidental Oil and Gas Corporation10889 Wilshire Boulevard Los Angeles, California 90024-4201 (310) 208-8800 www.oogc.com

Occidental Middle East Crescent Towers, Zayed The First Street, Khalidyah P.O. Box 73243 Abu Dhabi, United Arab Emirates +971 2 691 7200

Occidental Energy Marketing, Inc. 5 Greenway Plaza Houston, Texas 77046-0506 P.O. Box 27570 Houston, Texas 77227-7570 (713) 215-7000

cheMicals

Occidental Chemical Corporation Occidental Tower 5005 LBJ Freeway Dallas, Texas 75244-6119 P.O. Box 809050 Dallas, Texas 75380-9050 (972) 404-3800 www.oxychem.com

occidental international corPoration

1717 Pennsylvania Avenue, NW Suite 400 Washington, DC 20006-4614 (202) 857-3000