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NEW AGREEMENT IN PERU IMPROVES OUTLOOK FOR OXY'S OPERATIONS

 NEW AGREEMENT IN PERU IMPROVES OUTLOOK FOR OXY'S OPERATIONS
 LOS ANGELES, Dec. 12 /PRNewswire/ -- Occidental Petroleum Corporation (NYSE: OXY) announced today that it has signed an amendment to its existing petroleum contract with Peru's national oil company, PetroPeru, covering Block 1AB located in the jungle region, east of the Andes. The agreement, which improves the overall attractiveness of Occidental's investment in this block, incorporates the benefits of a recent government decree aimed at stimulating foreign investment in Peru's petroleum industry.
 In addition, the new agreement provides Occidental with an improved fee structure for its future services, assures timely payments for future crude oil production services and provides for the payment of all past due service fees.
 As a result of this agreement and the general improvement in the climate for foreign investment in Peru, Occidental will undertake a 20 well development drilling program in Block 1AB that will increase the recoverable reserves from these fields, which are currently producing over 52,000 barrels of oil per day. Occidental is currently negotiating a contract to explore Block 4 located in the Maranon Basin, 120 miles south of Block 1AB. Nor-Peruano Pipeline, which transports oil over the Andes to the Pacific Coast, crosses Block 4 and has capacity to accommodate production from new discoveries.
 In announcing the new agreement, Dr. Ray R. Irani, chairman, president and chief executive officer of Occidental, praised Peru for taking positive steps to encourage foreign investment. "Occidental is very pleased to be a partner in the Peruvian government's efforts to create a framework for future economic growth and prosperity. This agreement improves Occidental's profit from investments made to date and allows Occidental to make important new investments that will prove mutually beneficial both to the people of Peru and to the shareholders of Occidental."
 In addition to its 100 percent interest in the risk-service contract for Block 1AB, Occidental also has a 63 percent interest in the risk-service contract for a waterflood operation on the northern coast at Talara currently producing nearly 6,000 barrels of oil per day.
 -0- 12/12/91
 /CONTACT: Howard Collins (media), 213-443-6523, or Kenneth J. Huffman (investors), 212-603-8183, both of Occidental Petroleum/
 (OXY) CO: Occidental Petroleum Corp. ST: California IN: OIL SU:


CH -- LA009 -- 1955 12/12/91 12:24 EST
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Publication:PR Newswire
Date:Dec 12, 1991
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