Permian Resources New Mexico Field Tour Occidental Petroleum Corporation August 14, 2018
Occidental Petroleum Greater Sand Dunes Field Tour Permian Resources Permian EOR CCUS Progress and Potential 3
New Mexico Improvement Company Operated Annual Average Production…
Oxys Competitive Advantage in Permian Unconventional Development System Value Based Subsurface Vision Well 3D Modular Development Portfolio Decisions Manufacturing Characterization Development Scenarios Blueprint Organization…
Enhanced From Appraisal to Permian Leading Well Performance Subsurface Characterization Regional Basin Overview - Geologic Understanding Flow Unit Characterize flow Geochemistry of Source Rocks through Rock Samples Appraisal Flow…
Enhanced Subsurface Characterization in Greater Sand Dunes Oxys Basin-Leading Subsurface Capability Upper Flow Unit Drives Customized Development A A Integrated workflows with vast Permian subsurface data 10,000 mi2 3D seismic A A…
Enhanced Subsurface Characterization in Greater Sand Dunes Well Landing Optimization to Maximize Section Value Blue Section Red Section Black Section Customized landing per section Subsurface Integration Seismic Data Frac and…
Enhanced Subsurface Characterization in Greater Sand Dunes Well Landing Adjusted Development to Optimization to Original Plan Pre-Optimization (10K Laterals) Maximize Section Value Maximize Section Flow Unit 1 (10K Laterals) Flow…
Vision Well Process Drives Continuous Improvement Oxys vision well process removes well productivity Customized well designs utilizing data analytics barriers through technical engineering, analytics, reduce development costs and…
Leading Operator in the Permian Basin North Delaware Slope Oxy has 40%+ of the Turkey Track Development Area All 10 Oxy wells drilled in the last year Top Wells in Each Area are in the top 25 wells for this area Competitors pumped…
Permian Resources Delivers Basin Leading Wells Oxy has 25 of the top 50 Wells in the Permian Basin Leading Wells with Less Proppant 10,000 3,000 Competitor 8,000 Average Proppant /ft Proppant /ft IP 24 BOPD 6,000…
Maximize Portfolio Value and Sustainability Categorize Portfolio Sequencing Technical Advancement Development Timing Tier 1 Flow Unit Case 1: Simultaneous Tier 1 Flow Unit Tier ROR Section Development Tier 2 Flow Unit…
Area to Modular Land core-up completed Learnings from other development Section Development units applied Vision wells maximizing value Maximize value through optimizing Infrastructure optimized pace and sequencing Development Unit…
Multiple 3D Flow Unit Section Optimized Sequenced Development (OSD) Development Accelerates Production Efficiently Maximize margin, EUR and capital efficiencies Development Sequence Cross section view Optimized Sequence vs Simultaneous…
Manufacturing Blueprint Full Cycle Cost and Plan Drill RR to Frac Frac Flowback Online Time to Market Leadership Oxy Drilling Dynamics Strategic sourcing strategy for critical resources Operationalize section development plans and…
Manufacturing Blueprint Operational Cement Bond Logs 5 Production Casing Excellence Improves No rotation With rotation Well Productivity and Lowers Cost Early adopter of Rotary Steerables Oxy Drilling Dynamics Unique BHA designs…
Manufacturing Blueprint Operational Highlights New Mexico 15 x Slim 10k well designs to generate cost savings of Feet Drilled per Day 500,000 per well against 2018 BP (7,500,000 total +28% savings to date) 1,000 Drilled Sand…
Operating for Higher Margins Permian Scale and Oxy is Focused on the Full Life-cycle of the Well and Reservoir Operating Capability Well Production Reduces Costs Full life-cycle wellbore planning Time Timing of EOR can vary based…
Operating for Higher Margins Innovative Artificial Lift System Improves Costs and Well Performance Typical Unconventional Well Artificial Lift Life Cycle Implemented downhole lift system to increase life-cycle Flowing ESP/Gas Lift Beam…
Operating for Higher Margins Second Chances Project Restimulations Providing High Returns Modern fracturing technology Industry Average Proppant Significant Production and techniques applied to older Loading in New Mexico Increase…
Occidental Petroleum Greater Sand Dunes Field Tour Permian Resources Permian EOR CCUS Progress and Potential 22
Differentiated Scale and Position Permian EOR Over 2 Bboe Net Resource Potential 1 Bboe in current 10yr…
Benefits of EOR Proven History of Maximizing Recovery Business Unit in Oxys Portfolio Reservoir Development Stages Recovery of Oil in Place* Long-term cash 70% generator Waterflood 60% Low capital intensity CO2 growth…
Permian EOR Keys to Success: Long-term Life Cycle High-quality Reservoirs Technical EOR Expertise Contiguous Scale Infrastructure and CO 2 Supply Strategic Position Gas Processing 1 Bboe < 6/boe F&D Asset Automation and Controls…
Permian EOR Proven Leader in Maximizing Recovery Across the Permian Significant opportunity Permian EOR Net Resource Potential to grow inventory 2,000 Subsurface characterization Operating efficiency High-gradable Inventory…
Unmatched Infrastructure Position Field 20,000 wells 1,200+ surface facilities 30,000 miles of pipelines 230+ pumps for water reinjection Plants 13 gas processing plants 6 recompression facilities 19 compressor stations 920k hp…
Permian EOR Maximizing Recovery at High Margins Field Operating Costs Maintenance programs to predict failures and minimize costs Purchased Injectant Less than 25 of 7,000 beam units fail each year Field Operating Costs 20,000…
Creating Value at the Seminole San Andres Unit Increased Production 3,600 Boed or 16% Reduced Redrill Capital Costs by 36% Greater than 7/Boe Opex Reduction Increased plant inlet volume 32% Savings utilizing Permian scale Optimized…
Residual Oil Zone Provides Significant Future Development Potential Permian EOR ROZ development is a W E vertical expansion of the CO2 flooded area Main Oil Column Org. POWC TZ TZ Underlies most of our Org. FWL Org. FWL major EOR…
Occidental Petroleum Greater Sand Dunes Field Tour Permian Resources Permian EOR CCUS Progress and Potential 31
Occidental has CO2 Enhanced Oil Recovery (EOR) Global EOR Scale & Capability Utilized and using anthropogenic CO2 is a Permian Basin CO2 EOR Stored CO2 Safely form of carbon capture, utilization and storage (CCUS) Colombia and Reliably…
Key Drivers to Achieving Oxy Permian EOR stores 1 Bcfd CO2 = 18 MM Tonnes Per Year De-carbonization by 2040 The IEA assumes 4 Gigatonnes CO2 per year needs to be sequestered by 2040 = Over 200 Years of Oxy Permian EOR Injection…
Occidental Is The Leader In CO2 Enhanced Oil Recovery and Sequestration Capability Over 1,200 employees with CO2 EOR Projects1 deep history of enhanced oil 3,500 Production Volumes recovery and sequestration Reservoir 3,000 Occidental…
CO2 Sequestration Potential from Currently Emitting Sources Anthropogenic CO2 sources include power generation, refining and industrial sources Current strategy targets primarily ethanol and coal-fired electric generation plants…
How Does Carbon Capture and Sequestration Work Impactful Oxy stores the equivalent CO2 emissions of over 4 million cars every year Over multiple injection cycles, 100% of CO2 is stored in EOR reservoir Reliable Oxy has the first two EPA…
Monitoring, Reporting, and Verification Measurement System Verifies Containment in Closed Loop System Surface Containment Subsurface Containment Accounting System 37
Low Carbon Ventures Team Formed to Capitalize on Strategic EOR Position Reducing Oxys Carbon Footprint While Developing Economic Reserves Dedicated business unit Low Carbon Ventures Strategy formed to develop carbon capture,…
White Energy & Oxy Oxys next step: CO2 capture, utilization and storage project for emissions from two ethanol plants in Texas Carbon Sequestered 1,000,000 200,000 Source: White Energy Tonnes Per Year Cars Emissions Summary CO2…
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