Occidental Petroleum Corp. added to its Middle East portfolio Wednesday with an agreement to develop a pair of small oil and natural gas fields in Abu Dhabi, the largest of the United Arab Emirates.
The company's preliminary pact with Abu Dhabi National Oil Co. gives Occidental full ownership and operational control of development projects in Abu Dhabi fields called Jarn Yaphour and Ramhan. Westwood-based Occidental said it would invest about $500 million for development and additional project appraisals over the next three to four years.
The Jarn Yaphour field is expected to initially produce the equivalent of 10,000 barrels of oil a day, beginning next year. The shallow-water Ramhan field also is expected to produce the equivalent of 10,000 barrels of oil a day, starting as early as 2011.
The combined initial production amounts to 3% of Occidental's estimated 2008 oil-equivalent production rate of 600,000 to 620,000 barrels a day.