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Cover and table of contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
| ☑ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
| For the fiscal year ended | December 31, 2024 | For the transition period from to |
Commission File Number 1-9210
Occidental Petroleum Corporation
(Exact name of registrant as specified in its charter)
| State or other jurisdiction of incorporation or organization | Delaware | ||||||||||||||||
| I.R.S. Employer Identification No. | 95-4035997 | ||||||||||||||||
| Address of principal executive offices | 5 Greenway Plaza, Suite 110 | Houston, | Texas | ||||||||||||||
| Zip Code | 77046 | ||||||||||||||||
| Registrant’s telephone number, including area code | (713) | 215-7000 |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
| Common Stock, $0.20 par value | OXY | New York Stock Exchange | ||||||
| Warrants to Purchase Common Stock, $0.20 par value | OXY WS | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☑ | Accelerated Filer | ☐ | Emerging Growth Company | ☐ | ||||||||||||
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the registrant’s Common Stock held by nonaffiliates of the registrant was approximately $59.2 billion computed by reference to the closing price on the New York Stock Exchange of $63.03 per share of Common Stock on June 28, 2024.
As of January 31, 2025, there were 938,500,965 shares of Common Stock outstanding, par value $0.20 per share.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement, relating to its 2025 Annual Meeting of Stockholders, are incorporated by reference into Part III of this Form 10-K.
| ABBREVIATIONS USED WITHIN THIS DOCUMENT | |||||
| AOC | Administrative Order on Consent | ||||
| Anadarko | Anadarko Petroleum Corporation and its consolidated subsidiaries | ||||
| Anadarko Acquisition | a transaction pursuant to the Agreement and Plan of Merger dated May 9, 2019, in which Occidental acquired all of the outstanding shares of Anadarko on August 8, 2019, and in which a wholly owned subsidiary of Occidental merged with and into Anadarko | ||||
| Andes | Andes Petroleum Ecuador Ltd. | ||||
| ARO | asset retirement obligations | ||||
| Bcf | billions of cubic feet | ||||
| Bcf/d | billions of cubic feet per day | ||||
| Berkshire Hathaway | Berkshire Hathaway Inc. | ||||
| BlackRock | BlackRock Inc., which has formed a joint venture with Occidental on the construction of STRATOS | ||||
| BLM | U.S. Bureau of Land Management | ||||
| the Board | Occidental Board of Directors | ||||
| Boe | barrels of oil equivalent | ||||
| BOEM | U.S. Bureau of Ocean Energy Management | ||||
| CAD | Canadian dollar | ||||
| CCUS | carbon capture, utilization and storage | ||||
| CERCLA | Comprehensive Environmental Response, Compensation, and Liability Act | ||||
| CEO | chief executive officer | ||||
| CO2 | carbon dioxide | ||||
| CODM | chief operating decision maker | ||||
| Common Stock Warrants | a distribution of warrants to holders of Occidental common stock | ||||
| CROCE | cash return on capital employed | ||||
| CROCEI | cash return on capital employed incentive | ||||
| CrownRock | CrownRock, L.P. | ||||
| CrownRock Acquisition | acquisition of all of the outstanding partnership interests of CrownRock by Occidental | ||||
| DAC | direct air capture | ||||
| DASS | Diamond Alkali Superfund Site | ||||
| DD&A | depreciation, depletion and amortization | ||||
| DEL | Dolphin Energy Limited | ||||
| DOE | U.S. Department of Energy | ||||
| DOJ | U.S. Department of Justice | ||||
| DSCC | Diamond Shamrock Chemicals Company | ||||
| ECMC | Colorado Energy and Carbon Management Commission, formerly the Colorado Oil & Gas Conservation Commission | ||||
| EDC | ethylene dichloride | ||||
| EOR | enhanced oil recovery | ||||
| EPA | U.S. Environmental Protection Agency | ||||
| EPS | earnings per share | ||||
| Exchange Act | Securities Exchange Act of 1934 | ||||
| GAAP | Generally accepted accounting principles | ||||
| GHG | greenhouse gas | ||||
| GOA | Gulf of America | ||||
| HSE | health, safety and environmental | ||||
| IRA | Inflation Reduction Act | ||||
| IRS | Internal Revenue Service | ||||
| Kerr-McGee | Kerr-McGee Corporation and certain of its subsidiaries | ||||
| LIFO | last-in, first-out | ||||
| Maxus | Maxus Energy Corporation | ||||
| Mbbl | thousands of barrels | ||||
| Mbbl/d | thousands of barrels per day | ||||
| Mboe | thousands of barrels equivalent | ||||
| Mboe/d | thousands of barrels equivalent per day | ||||
| Mcf | thousands of cubic feet |
| ABBREVIATIONS USED WITHIN THIS DOCUMENT | |||||
| MMbbl | millions of barrels | ||||
| MMbtu | million British thermal units | ||||
| MMcf | millions of cubic feet | ||||
| MMcf/d | millions of cubic feet per day | ||||
| NAV | net asset value | ||||
| NCI | noncontrolling interest | ||||
| NEPA | National Environmental Policy Act | ||||
| NGL | natural gas liquids | ||||
| NPL | National Priorities List | ||||
| NYMEX | New York Mercantile Exchange | ||||
| NYSE | New York Stock Exchange | ||||
| Occidental | Occidental Petroleum Corporation, a Delaware corporation and one or more entities in which it owns a controlling interest (subsidiaries) | ||||
| OCI | other comprehensive income | ||||
| OECD | Organization for Economic Cooperation and Development | ||||
| OLCV | Oxy Low Carbon Ventures, LLC and its consolidated subsidiaries | ||||
| OPEC | Organization of the Petroleum Exporting Countries | ||||
| Options | stock options | ||||
| OTC | over-the-counter | ||||
| OU | operable unit | ||||
| OxyChem | Occidental Chemical Corporation and its consolidated subsidiaries | ||||
| the Plans | the stockholder-approved 2015 Long-Term Incentive Plan, as amended and restated, for certain employees and directors and the Phantom Share Unit Award Plan | ||||
| PP&E | property, plant & equipment | ||||
| PSC | production sharing contracts | ||||
| PUD | proved undeveloped | ||||
| PVC | polyvinyl chloride | ||||
| RCF | revolving credit facility | ||||
| Reserves Committee | Corporate Reserves Review Committee | ||||
| ROD | Record of Decision | ||||
| RSUs | restricted stock units | ||||
| Ryder Scott | Ryder Scott Company, L.P. | ||||
| S&P 500 | Standard & Poor’s 500 Stock Index | ||||
| SEC | U.S. Securities and Exchange Commission | ||||
| SOFR | Secured Overnight Financing Rate | ||||
| Sonatrach | the national oil and gas company of Algeria | ||||
| SPEE | Society of Petroleum Evaluation Engineers | ||||
| STEP | Strategic Technical Excellence Program | ||||
| STRATOS | Occidental’s first large-scale DAC facility in Ector County, Texas | ||||
| TSRI | total shareholder return incentive | ||||
| UAE | United Arab Emirates | ||||
| VCM | vinyl chloride monomer | ||||
| Waha | natural gas trading hub in the Permian Basin | ||||
| WES | Western Midstream Partners, LP | ||||
| WTI | west Texas intermediate | ||||
| Zero Coupons | Zero Coupon senior notes due 2036 | ||||
| 2024 Form 10-K | Occidental’s Annual Report on Form 10-K for the year ended December 31, 2024 |
 | table of contents | BUSINESS AND PROPERTIES |
Part I
ITEMS 1 AND 2. BUSINESS AND PROPERTIES
In this Form 10-K, “Occidental”, “we”, “our” and “the Company” refers to Occidental Petroleum Corporation, a Delaware corporation incorporated in 1986, or Occidental and one or more entities in which it owns a controlling interest (subsidiaries). Occidental conducts its operations through its various subsidiaries and affiliates. Occidental’s executive offices are located at 5 Greenway Plaza, Suite 110, Houston, Texas 77046; telephone (713) 215-7000.
| GENERAL |
Occidental is an international energy company with premier diversified assets primarily located in the United States, the Middle East and North Africa and distinguished operational capabilities that create a runway for sustainable shareholder value accretion. Occidental is one of the largest oil and gas producers in the U.S., where it is a leading producer in the Permian and DJ basins, and offshore Gulf of America, and it is the largest independent oil producer in Oman. Occidental’s midstream and marketing segment provides flow assurance and enhances the value of the oil and gas segment. Oxy Low Carbon Ventures, a subsidiary within the midstream and marketing segment, is advancing leading-edge technologies and decarbonization solutions, including direct air capture, lithium development and near-zero emissions power, that seek to economically grow the business while reducing emissions. Occidental’s chemical subsidiary, OxyChem, is a leading North American manufacturer that produces the building blocks for life-enhancing products, including drinking water, medical supplies and construction materials.
| HUMAN CAPITAL RESOURCES |
Occidental’s culture is built upon the following core values:
■Lead with Passion
■Outperform Expectations
■Deliver Results Responsibly
■Unleash Opportunities
■Commit to Good
Occidental’s human capital resources and programs are managed by its Human Resources department, with support from business leaders across the Company. Occidental’s senior management team plays a key role in setting and monitoring Occidental’s culture, values and broader human capital management practices, with oversight by Occidental’s Board of Directors, the Sustainability and Shareholder Engagement Committee of the Board and the Environmental, Health and Safety Committee of the Board. To enhance senior leadership’s engagement with employees, Occidental hosts quarterly executive virtual conversations led by its President and CEO, Vicki Hollub, who along with other executives reviews financial and operational performance and responds to employee questions.
Occidental strives to create an environment where employees’ differences are appreciated, celebrated and encouraged. Occidental has attracted, and continues to recruit, a diverse workforce of exceptional talent. This diversity enriches Occidental’s culture and its employees' experiences on the job and contributes to an innovative and effective business model that encourages local communities to thrive.
The Human Resources department supports eleven voluntary Employee Resource Groups, which promote peer engagement and education to help advance inclusion and a sense of belonging of employees with common interests.
TALENT ATTRACTION, DEVELOPMENT AND RETENTION
Occidental recruits candidates in numerous ways, including through job fairs, professional societies and campus recruiting, including expanded recruiting at diverse colleges and universities.
To attract and retain talent, Occidental has implemented programs that afford employees more flexibility and promote increased work-life balance. Among them is the Balanced Workplace Program under which eligible office-based employees may opt to work three days in the office and two days at home each week.
In addition, Occidental’s global STEP was formed to recruit, develop and retain highly skilled and valued geoscientists, engineers, scientists and other petrotechnical professionals who collectively drive innovation, advance performance and inspire the future of energy development. STEP is a highly valued program for individual contributors to focus and advance on a technical, non-managerial career path, providing a competitive advantage for Occidental through the optimum application of technology. The Chief Petrotechnical Officer leads all aspects of STEP and reports directly to Occidental’s President and CEO.
| OXY 2024 FORM 10-K | 3 |
| table of contents | BUSINESS AND PROPERTIES |
Occidental employees have access to extensive development and training opportunities and programs to expand their personal and professional skills and knowledge. Occidental’s approach to education includes leadership/management training to develop leadership skills at all levels and expanded on-demand professional and development classes and mentoring to enhance critical business skills, broaden employee networks, and engage its employees.
EMPLOYEE COMPENSATION AND BENEFITS
Occidental’s compensation and benefits program is designed to attract and retain the talent necessary to achieve its business strategy. The compensation and benefits program recognizes and rewards strong Company and individual performance with competitive base salaries, as well as an annual bonus program, recognition awards, long-term performance incentives and advancement opportunities for eligible individuals. Occidental’s compensation and benefits program is routinely reviewed and benchmarked to ensure competitiveness and to provide the benefits that matter most to current and future employees.
Occidental strives to give employees the tools and resources they need to succeed both professionally and personally and to foster a safe and collaborative work environment. To that end, Occidental offers, and regularly evaluates, its comprehensive health, welfare and retirement and savings benefits plans, professional memberships and work-life balance benefits. It also provides programs to enhance and support employees’ overall well-being, including their physical, mental, social and financial health. Addressing well-being is imperative to ensure that Occidental’s employees stay resilient, healthy and productive. Occidental offers an enhanced mental health benefit through Lyra Health, which provides cost-free mental and emotional healthcare that is effective, convenient and personalized to all employees and their eligible dependents. Lyra Health professionals provide virtual or in-person support for a variety of mental health concerns including anxiety, depression, stress management, parenting challenges, relationship conflicts and sleep problems.
HEALTH AND SAFETY
The health and safety of Occidental’s workforce and communities is a top priority as reflected in the Company's HSE and Sustainability Principles. Occidental’s Operating Management System sets expectations, provides guidance, training and resources, and empowers employees and contractors to stop any job or activity if they observe conditions that may give rise to a safety or environmental incident. The Company is also focused on reducing incident severity, enhancing contractor safety programs and harmonizing safety systems, programs and tools. These efforts helped Occidental sustain its robust safety record and promote continued improvements and innovations in safety, efficiency, reliability and environmental stewardship.
WORKFORCE COMPOSITION
The following table approximates regional distribution of Occidental’s employees as of December 31, 2024:
| North America | Middle East | Latin America | Other (a) | Total | ||||||||||||||||||||||||||||
| Union | 426 | 405 | 56 | — | 887 | |||||||||||||||||||||||||||
| Non-Union | 9,177 | 3,007 | 115 | 137 | 12,436 | |||||||||||||||||||||||||||
| Total | 9,603 | 3,412 | 171 | 137 | 13,323 |
(a)Other headcount included North Africa, Europe and Asia.
| 4 | OXY 2024 FORM 10-K |
| table of contents | BUSINESS AND PROPERTIES |
| ENVIRONMENTAL REGULATION |
For environmental regulation information, including associated costs, see the information under Environmental Expenditures in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section under Part II, Item 7 of this Form 10-K, Risk Factors under Part I, Item 1A of this Form 10-K and in Note 12 - Environmental Liabilities and Expenditures and Note 13 - Lawsuits, Claims, Commitments and Contingencies in the Notes to Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
| AVAILABLE INFORMATION |
Occidental’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports are available free of charge on its website, www.oxy.com, as soon as reasonably practicable after Occidental electronically files the material with, or furnishes it to, the SEC. In addition, copies of Occidental’s annual report will be made available, free of charge, upon written request.
From time to time, Occidental has made and expects in the future to use its website as a channel of distribution of material information regarding the Company. Financial and other material information regarding the Company is routinely posted on Occidental’s website and accessible at www.oxy.com/investors/.
Information contained on Occidental’s website is not part of or incorporated into this Form 10-K or any other filings with the SEC.
| OXY 2024 FORM 10-K | 5 |
| table of contents | BUSINESS AND PROPERTIES |
| OIL AND GAS OPERATIONS |
GENERAL
Occidental’s oil and gas business is primarily located in the United States, the Middle East and North Africa. Within the United States, Occidental has operations primarily in Texas, New Mexico and Colorado, as well as offshore in the Gulf of America. Through the CrownRock Acquisition on August 1, 2024, Occidental added high margin production and low-breakeven inventory to its oil and gas portfolio in the Permian Basin. Occidental’s international assets are primarily located in Algeria, Oman, Qatar and the UAE. Refer to the Oil and Gas Acreage section in Supplemental Oil and Gas Information under Item 8 of this Form 10-K for further disclosure of Occidental’s holdings of developed and undeveloped oil and gas acreage and Note 5 - Acquisitions, Divestitures and Other Transactions in the Notes to Consolidated Financial Statements in Part II Item 8 of this Form 10-K for further details on the CrownRock Acquisition.
COMPETITION
As a producer of oil, NGL and natural gas, Occidental competes domestically and internationally with public, private and nationalized producers. Oil, NGL and natural gas are sensitive to current and anticipated market conditions, both global and local. Occidental’s competitive strategy relies on producing hydrocarbons in a capital efficient manner through developing conventional and unconventional fields and utilizing primary, secondary (waterflood) and tertiary (CO2 and steam flood) recovery techniques in areas where Occidental has a competitive advantage, resulting from its successful operations or investments in shared infrastructure. Occidental also competes to develop and produce its worldwide oil and gas reserves safely, sustainably and cost-effectively, maintain a skilled workforce and use high quality service providers. Occidental believes that its core competencies in CO2 separation, transportation, use, recycling and storage in EOR provide a competitive advantage over its peers as the world transitions to a less carbon-intensive economy and seeks to remove CO2 from the atmosphere.
PROVED RESERVES AND SALES VOLUMES
The table below shows Occidental’s year-end oil, NGL and natural gas proved reserves. See the information under Oil and Gas Segment in the Management's Discussion and Analysis section under Part II, Item 7, of this Form 10-K for details regarding Occidental’s proved reserves, the reserves estimation process, sales and production volumes, production costs and other reserves-related data.
COMPARATIVE OIL AND GAS PROVED RESERVES AND SALES VOLUMES
Oil and NGL is in MMbbl; natural gas is in Bcf.
| 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||
| Oil | NGL | Gas | Boe | (a) | Oil | NGL | Gas | Boe | (a) | Oil | NGL | Gas | Boe | (a) | |||||||||||||||||||||||||||||||||
| Proved Reserves | |||||||||||||||||||||||||||||||||||||||||||||||
| United States | 1,832 | 1,060 | 5,394 | 3,791 | 1,600 | 802 | 4,235 | 3,108 | 1,639 | 654 | 4,073 | 2,972 | |||||||||||||||||||||||||||||||||||
| International | 303 | 176 | 2,049 | 821 | 340 | 181 | 2,117 | 874 | 274 | 192 | 2,277 | 845 | |||||||||||||||||||||||||||||||||||
| Total | 2,135 | 1,236 | 7,443 | 4,612 | 1,940 | 983 | 6,352 | 3,982 | 1,913 | 846 | 6,350 | 3,817 | |||||||||||||||||||||||||||||||||||
| Sales Volumes | |||||||||||||||||||||||||||||||||||||||||||||||
| United States | 209 | 102 | 548 | 402 | 195 | 90 | 480 | 365 | 185 | 83 | 445 | 342 | |||||||||||||||||||||||||||||||||||
| International | 38 | 14 | 191 | 84 | 39 | 13 | 176 | 81 | 41 | 12 | 164 | 81 | |||||||||||||||||||||||||||||||||||
| Total | 247 | 116 | 739 | 486 | 234 | 103 | 656 | 446 | 226 | 95 | 609 | 423 |
(a)Natural gas volumes are converted to Boe at six Mcf of gas per one barrel of oil. Conversion to Boe does not necessarily result in price equivalency.
| 6 | OXY 2024 FORM 10-K |
| table of contents | BUSINESS AND PROPERTIES |
| CHEMICAL OPERATIONS |
GENERAL
OxyChem owns and operates manufacturing plants at 21 domestic sites in Alabama, Georgia, Illinois, Kansas, Louisiana, Michigan, New Jersey, Ohio, Tennessee and Texas and at two international sites in Canada and Chile.
COMPETITION
OxyChem competes with numerous domestic and international chemical producers. OxyChem’s market position was either first or second in the United States in 2024 for each of the principal basic chemical products it manufactured and marketed as well as for VCM. OxyChem ranks in the top three producers of PVC in the United States. OxyChem’s competitive strategy is to be a low-cost producer of its products in order to compete on price.
OxyChem produced the following products:
| Principal Products | Major Uses | Annual Capacity | ||||||
| Basic Chemicals | ||||||||
| Chlorine | Raw material for EDC, water treatment and pharmaceuticals | 3.2 million tons | ||||||
| Caustic soda | Pulp, paper and aluminum production | 3.3 million tons | ||||||
| Chlorinated organics | Refrigerants (a), silicones and pharmaceuticals | 1 billion pounds | ||||||
| Potassium chemicals | Fertilizers, batteries, soaps, detergents and specialty glass | 0.4 million tons | ||||||
| EDC | Raw material for VCM | 2.1 billion pounds | ||||||
| Chlorinated isocyanurates | Swimming pool sanitation and disinfecting products | 150 million pounds | ||||||
| Sodium silicates | Catalysts, soaps, detergents and paint pigments | 0.6 million tons | ||||||
| Calcium chloride | Ice melting, dust control, road stabilization and oil field services | 0.7 million tons | ||||||
| Vinyls | ||||||||
| VCM | Precursor for PVC | 6.2 billion pounds | ||||||
| PVC | Piping, building materials and automotive and medical products | 3.7 billion pounds | ||||||
| Ethylene | Raw material for VCM | 1.3 billion pounds (b) |
(a)Includes 4CPe, a raw material used in making next generation refrigerants with low global warming and zero ozone depletion potential.
(b)Amount is gross production capacity for 50/50 joint venture with Orbia.
| OXY 2024 FORM 10-K | 7 |
| table of contents | BUSINESS AND PROPERTIES |
| MIDSTREAM AND MARKETING OPERATIONS |
GENERAL
Occidental’s midstream and marketing operations primarily support and enhance its oil and gas and chemical businesses. The midstream and marketing segment strives to optimize the use of its gathering, processing, transportation, storage and terminal commitments and to provide access to domestic and international markets. To generate returns, the segment evaluates opportunities across the value chain to provide services to Occidental subsidiaries, as well as third parties. The midstream and marketing segment operates or contracts for services on gathering systems, gas plants, co-generation facilities and storage facilities and invests in entities that conduct similar activities, such as WES in the United States and DEL in the Middle East, which are accounted for as equity method investments. WES owns gathering systems, plants and pipelines and earns revenue from fee-based and service-based contracts with Occidental and third parties. DEL owns and operates a pipeline that connects its gas processing and compression plant in Qatar and its receiving facilities in the UAE, and uses its network of DEL-owned and other existing leased pipelines to supply natural gas to the UAE and Oman. The midstream segment also includes Al Hosn Gas, a processing facility in the UAE that removes sulfur from natural gas and processes the natural gas and sulfur for sale, as well as the OLCV businesses.
Leveraging Occidental’s carbon management expertise, OLCV primarily focuses on advancing carbon removal and CCUS projects, including developing and commercializing DAC technology. STRATOS, the Company’s first large-scale DAC facility, is designed to capture up to 500,000 tonnes of CO2 per annum once complete. Commissioning and start-up of operations for the first phase of the project is expected in mid-2025, with an initial capacity of up to 250,000 tonnes of CO2 per annum. OLCV also invests in third-party entities developing technologies to advance other low-carbon initiatives, including NET Power, an energy technology company building its first utility-scale plant to provide near-zero emissions electricity by 2028.
COMPETITION
Occidental’s midstream and marketing businesses operate in competitive and highly regulated markets. Occidental competes for capacity and infrastructure for the gathering, processing, transportation, storage and delivery of its products, which are sold at market prices or on a forward basis to refiners, end users and other market participants. Occidental’s marketing business competes with other market participants on exchange platforms and through other bilateral transactions with direct counterparties. OLCV and its businesses and investees also face a broad range of competitors, with nascent markets for low-carbon products and CO2 removal credits that are subject to rapidly changing laws, regulations, policies and reporting and verification mechanisms that can significantly impact the financing, construction and operation of projects and the development of markets.
Occidental’s midstream and marketing operations are conducted in the locations described below as of December 31, 2024:
| Location(a) | Description | Capacity (b) | ||||||
| Gas Plants | ||||||||
| Texas, New Mexico and Colorado | Occidental and third-party-operated natural gas/CO2 gathering, compression and processing systems | 2.1 Bcf/d | ||||||
| Texas, Rocky Mountains and Other | Equity investment in WES - gas processing facilities | 5.5 Bcf/d | ||||||
| UAE | Natural gas processing facilities for Al Hosn Gas | 1.45 Bcf/d | ||||||
| Pipelines and Gathering Systems | ||||||||
| Texas, New Mexico and Colorado | CO2 fields and pipeline systems transporting CO2 to oil and gas producing locations | 2.8 Bcf/d | ||||||
| Qatar, UAE and Oman | Equity investment in the DEL natural gas pipeline | 3.2 Bcf/d | ||||||
| United States | Equity investment in WES involved in gathering and transportation | 14,371 miles of pipeline | ||||||
| Power Generation | ||||||||
| Texas and Louisiana | Occidental-operated power and steam generation facilities | 1,218 megawatts of electricity and 1.6 million pounds of steam per hour | ||||||
| OLCV | ||||||||
| Texas | Occidental-owned solar generation facility | 16.8 megawatts of electricity | ||||||
| Texas | Equity investment in a near-zero emissions natural gas based power generation demonstration facility | up to 50 megawatts of electricity |
(a)Table does not include assets under construction.
(b)Amounts are gross, including interests held by third parties.
| 8 | OXY 2024 FORM 10-K |
| table of contents | RISK FACTORS |