OXY FIRST U.S. COMPANY TO EXPLORE IN ALBANIA

Occidental Petroleum Corp. is the first U.S. oil company awarded a production sharing contract in Albania. The agreement between Oxy and Albania's Directorate of Oil and Gas calls for exploration of the 2,500 sq km Block 3 in the Adriatic Sea. Oxy is operator with 100% interest. Oxy agreed to conduct a 2 1/2 year exploration program that calls for acquiring 1,500 line km of seismic data and drilling one wildcat. Plans are to conduct the seismic survey later this year and drill the first

July 22, 1991

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Occidental Petroleum Corp. is the first U.S. oil company awarded a production sharing contract in Albania.

The agreement between Oxy and Albania's Directorate of Oil and Gas calls for exploration of the 2,500 sq km Block 3 in the Adriatic Sea. Oxy is operator with 100% interest.

Oxy agreed to conduct a 2 1/2 year exploration program that calls for acquiring 1,500 line km of seismic data and drilling one wildcat.

Plans are to conduct the seismic survey later this year and drill the first well in 1992.

The agreement also defines a 4,000 sq km onshore area in the productive Durres basin, where Oxy can conduct geologic studies. If the Albanian government allows future foreign participation in the onshore basin, Oxy will be allowed to select drilling areas and negotiate a production sharing agreement.

Albania produces about 30,000 b/d of oil from its onshore fields. The offshore area is divided into five blocks that are on trend with onshore production.

Oxy's Block 3 is on the western flank of the Durres basin, a Tertiary basin underlying most of onshore and offshore western Albania.

An oil discovery of undetermined size has been drilled in Italian waters of the Adriatic Sea west of Block 3.