Fresh after securing its place in the joint venture with ADNOC to develop Abu Dhabi’s Shah sour gas field, Occidental Petroleum Corporation announced a net income of US$1.2 billion for the fourth quarter of 2010, compared with $938 million for the fourth quarter of 2009. Core income for the fourth quarter of 2010 was $1.3 billion compared with $1.1 billion for the fourth quarter of 2009.
Net income for the 12 months of 2010 was $4.5 billion, compared with $2.9 billion for 2009. Full year 2010 core results were $4.7 billion, compared with $3.2 billion for 2009.
In announcing the results, Ray R. Irani, chairman and chief executive officer, said: “The 2010 net income of $4.5 billion was 55% higher than 2009 and cash flow from operations was $9.3 billion, a 60% increase from 2009. Our oil and gas production increased 5% on a year-over-year basis to a daily average of 748,000 barrels of equivalent (BOE), the largest in Oxy’s history.”
Oil and Gas
Oxy’s oil and gas segment earnings were $7.2 billion for the 12 months of 2010, compared with $5.1 billion for the same period of 2009. Oil and gas core results, after excluding asset impairments and rig termination costs, were $7.4 billion for the twelve months of 2010, compared with $5.1 billion for the same period of 2009. The $2.3 billion increase in the 2010 results reflected higher crude oil and natural gas prices and higher volumes, partially offset by higher operating costs and depletion, depreciation and amortisation rates.
Daily oil and gas production volumes for the 12 months, including Argentina, were 748,000 BOE for 2010, compared with 712,000 BOE for the 2009 period, an increase of 5%. Volume increases in the Middle East/North Africa, resulting from the new production in Bahrain and higher production in the Mukhaizna field in Oman, and gas production from the domestic assets were partially offset by a decline in Colombia.
Production was negatively impacted in the Middle East/North Africa, Long Beach and Colombia resulting from higher year-over-year average oil prices affecting production sharing and similar contracts by 16,000 BOE per day. Daily sales volumes, from continuing operations, were 701,000 BOE in the 12 months of 2010, compared with 672,000 BOE for 2009.
Oxy’s realised price for worldwide crude oil was $75.16 per barrel for the 12 months of 2010, compared with $57.31 per barrel for the twelve months of 2009. Domestic realised gas prices increased from $3.46 per MCF in the 12 months of 2009 to $4.53 per MCF in the 12 months of 2010.
