February 3, 2010 / 10:05 PM / 9 years ago

UPDATE 1-Oxy reserve additions two times its output in 2009

* Occidental reserve replacement ratio 206 pct in 2009

* Finding/development costs nearly half of past 3 years

* Shares up 0.5 pct in after-hours trading

SAN FRANCISCO, Feb 3 (Reuters) - Occidental Petroleum Corp (OXY.N) added twice as much to its reserves as it pulled out of the ground in 2009, which was an improvement on the previous three years as finding and development costs declined.

The fourth-largest U.S. oil company said on Wednesday it replaced 206 percent of its 2009 production of 235 million barrels of oil equivalent (boe), leaving it with preliminary worldwide reserves of 3.23 billion boe at the end of 2009.

Chief Executive Ray Irani, who had indicated the reserve replacement ratio was about that level along with fourth-quarter results last week, said in a statement that finding and development costs were $7.90 per boe in 2009.

That was nearly half the $15.10 per boe average cost of the previous 3-year period, when Occidental replaced 160 percent of its production, he added.

Oxy said 73 percent of its reserves were now oil, while the rest was natural gas, and nearly two-thirds of the Los Angeles-based company’s reserves were in its home country.

Occidental said 36 percent of the 483 million boe in additional reserves were from improved recovery, while another third of the additions were from purchases.

Shares of Occidental rose 42 cents in after-hours trading to $80.55.

Reporting by Braden Reddall; Editing by Richard Chang

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