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Press Release Source: Occidental Petroleum Corp

Ecuador's Energy Minister Terminates Occidental's Block 15 Contract

Monday May 15, 9:34 pm ET
LOS ANGELES, May 15, 2006 (PRIMEZONE) -- Ecuador's Minister of Energy formally declared that Occidental's (NYSE:OXY - News) contract for the operation of Block 15 had been terminated and the Government of Ecuador has the right under Ecuadorian law to seize the assets immediately. Despite the actions taken by the Government of Ecuador, Occidental remains committed to an amicable settlement of this dispute. Occidental's Block 15 operations represent approximately 7 percent of Occidental's first quarter worldwide production, 3 percent of its pro-forma proved consolidated reserves including the Vintage acquisition, and 2 percent of its total property plant and equipment, net of accumulated depreciation, depletion and amortization, at March 31, 2006.
Occidental is currently reviewing the contents of a 33-page document which it received from the Government of Ecuador. Occidental maintains that it has complied fully with all material obligations under its contract with the Government of Ecuador and is evaluating its legal options to defend its interests.