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Thursday 31 October, 2002

OCP

Occidental Petroleum Announces Third Quarter 2002

Occidental Petroleum Announces Third Quarter 2002 Results

LOS ANGELES, Oct 21, 2002 (PRIMEZONE) -- Occidental Petroleum
Corporation (NYSE:OXY) announced net income for the third quarter 2002
of $402 million ($1.07 per share), compared with $444 million ($1.19 per
share) for the third quarter 2001.  Earnings before special items and
discontinued operations were $329 million ($0.87 per share) for the
third quarter 2002, compared with $316 million ($0.85 per share) for the
third quarter 2001.  The third quarter 2002 included special items and
discontinued operations of a net $73 million gain related to asset
sales, primarily the sale of the investment in Equistar, partially
offset by the impairment of various chemical assets.  The third quarter
2001 special items and discontinued operations included a net $128
million gain related to the sale of non-strategic assets.

In announcing the results, Dr. Ray R. Irani, chairman and chief
executive officer, said, "Occidental turned in another strong
performance in the third quarter.  Earnings before special items and
discontinued operations not only exceeded last year's third quarter
results, but also this year's second quarter results.

"For the first nine months of this year, our production of 513,000 BOE
per day increased by over 8 percent compared with the same period in
2001.  We have exceeded the production forecast of 500,000 BOE per day
for 2002 that we provided earlier this year, and we are reaffirming our
forecast for 2003 of 525,000 BOE per day.

Income from our chemical businesses continued to improve in the third
quarter from the second quarter as a result of improving margins, mainly
from chloro-vinyls products."

Oil and Gas

Oil and gas segment earnings before special items were $483 million for
the third quarter 2002, compared with $528 million for the third quarter
2001.  The decline in the third quarter 2002 earnings reflected the
effect of lower natural gas prices partially offset by lower exploration
expense and higher crude oil prices.

Oil and gas segment earnings were $490 million for the third quarter
2002, compared with $927 million for the third quarter 2001.  The
special items in both years included after-tax gains related to the sale
of non-strategic assets, $7 million in the third quarter 2002 and $399
million in the third quarter 2001.

Chemicals

Chemical segment earnings before special items were $87 million for the
third quarter 2002, compared with $38 million for the third quarter
2001.  The improvement in the third quarter 2002 earnings reflected
higher sales prices for PVC, chlorine and EDC, and improved performance
of the Equistar petrochemical investment partially offset by lower
caustic soda prices.

Chemical segment earnings were $214 million for the third quarter 2002.
The third quarter 2002 special items included a $164 million net of tax
gain from the sale of the investment in Equistar and a $37 million pre-
tax charge for the impairment of various operating assets.  There were
no special items in the third quarter 2001.

Nine Months Results

For the first nine months of 2002, net income was $667 million ($1.77
per share), compared with $1.401 billion ($3.77 per share) for the first
nine months of 2001.  Earnings before special items and discontinued
operations were $702 million ($1.87 per share) for 2002, compared with
$1.291 billion ($3.47 per share) for the same period of 2001.

EITF Issue 02-3

Occidental adopted EITF Issue 02-3 in the third quarter of 2002 and
reflected the appropriate changes in all periods presented.  Revenues
and cost of sales for oil and gas trading activities were reduced by
equal and offsetting amounts, as discussed in the footnote to the
Summary of Segment Net Sales and Earnings in this press release.  There
was no change in margins, income, EPS or cash flow for any period as a
result of this adoption.  Energy companies that have revenues from
trading activities were required to implement this issue in the third
quarter.

Statements in this presentation that contain words such as "will" or
"expect," or otherwise related to the future, are forward-looking and
involve risks and uncertainties that could significantly affect expected
results.  Factors that could cause results to differ materially include,
but are not limited to: global commodity pricing fluctuations, and
supply/demand consideration, for oil, gas and chemicals; higher-than-
expected costs; and not successfully completing (or any material delay
in) any expansion, capital expenditure, acquisition, or disposition.
Occidental disclaims any obligation to update any forward-looking
statements.

 SUMMARY OF SEGMENT NET SALES AND EARNINGS
 (Millions, except per-share amounts)

                                     Third Quarter       Nine Months
 Periods Ended September 30          2002     2001     2002     2001
 --------------------------          ----     ----     ----     ----
 SEGMENT NET SALES
    Oil and gas (a)                $ 1,224  $ 1,251  $ 3,347  $ 4,310
    Chemical                           739      732    2,006    2,408
                                     -----    -----    -----    -----
    Net sales                      $ 1,963  $ 1,983  $ 5,353  $ 6,718
 --------------------------          -----    -----    -----    -----

 SEGMENT EARNINGS
   Oil and gas                     $   490  $   927  $ 1,217  $ 2,679
   Chemical                            214       38      217       14
                                     -----    -----    -----    -----
                                       704      965    1,434    2,693
 Unallocated Corporate Items
   Interest expense, net (b)           (73)     (60)    (195)    (207)
   Income taxes (c)                   (105)    (128)    (250)    (550)
   Trust preferred distributions
     & other                           (12)     (13)     (35)     (43)
   Other (d)                           (38)    (321)    (114)    (467)
                                      -----    -----    -----    -----

 Income from continuing operations     476      443      840    1,426
   Discontinued operations (e)         (74)       1      (78)       2
   Extraordinary loss, net              --       --       --       (3)
   Cumulative effect of changes
     in accounting principles, net      --       --      (95)     (24)
                                     -----    -----    -----    -----
 NET INCOME                        $   402  $   444  $   667  $ 1,401
                                     -----    -----    -----    -----

 BASIC EARNINGS PER COMMON SHARE
   Income from continuing
    operations                     $  1.26  $  1.19  $  2.23  $  3.83
   Discontinued operations (e)        (.19)      --     (.21)     .01
   Extraordinary loss, net              --       --       --     (.01)
   Cumulative effect of changes
     in accounting principles, net      --       --     (.25)    (.06)
                                     -----    -----    -----    -----
                                   $  1.07  $  1.19  $  1.77  $  3.77
                                     -----    -----    -----    -----

 DILUTED EARNINGS PER COMMON SHARE
   Income from continuing
    operations                     $  1.25  $  1.18  $  2.22  $  3.81
   Discontinued operations (e)        (.19)      --     (.21)     .01
  Extraordinary loss, net               --       --       --     (.01)
   Cumulative effect of changes
    in accounting principles, net       --       --     (.25)    (.06)
                                     -----    -----    -----    -----
                                   $  1.06  $  1.18  $  1.76  $  3.75
                                     -----    -----    -----    -----


 AVERAGE BASIC COMMON SHARES
   OUTSTANDING                       377.1    373.5    376.0    371.9
 --------------------------          -----    -----    -----    -----

 (a) Oil and gas revenues reflect the adoption of EITF 02-3 effective
     in the third quarter of 2002.  Segment net sales (revenues) and
     cost of sales were reduced by equal and offsetting amounts to
     report revenue from oil and gas trading activities on a net basis
     as follows:

                                    Third Quarter      Nine Months
                                        2001              2001
                                    -------------     -------------
 Previously reported sales             $2,521            $9,097
 Adjustments pursuant to EITF 02-3     (1,270)           (4,787)
                                       ------            ------
 Sales as adjusted                     $1,251            $4,310
                                       ------            ------

     There was no change in margins, income, EPS or cash flow for any
     period as a result of this adoption.

 (b) Includes interest income on notes receivable from Altura
     partners.  The nine months year-to-date 2002 includes $22 million
     and the third quarter and nine months year-to-date 2001 include
     $24 million and $85 million, respectively.

 (c) Includes an offset for charges and credits in lieu of U.S.
     federal income taxes allocated to the segments.  Oil and gas
     segment earnings have been impacted by charges of $3 million and
     $35 million in the third quarters of 2002 and 2001, respectively.
     The oil and gas segment third quarters of 2002 and 2001 includes
     the tax effects from asset sales of $4 million and $35 million,
     respectively.  Chemical segment earnings have been impacted by
     credits of $395 million in the third quarter of 2002 and $16
     million in the third quarter of 2001.  The chemical segment third
     quarters of 2002 and 2001 include the tax effects from asset
     sales/dispositions of $392 million and $12 million, respectively.

 (d) Includes preferred distributions to the Occidental Permian
     partners.  The nine months year-to-date 2002 includes $20
     million.  The third quarter and nine months year-to-date 2001
     include $25 million and $87 million, respectively.  These amounts
     are essentially offset by the interest income discussed in (b)
     above.  The third quarter and nine months year-to-date 2001 also
     include a $272 million net-of-tax loss related to the sale of
     Occidental's residual interest in Occidental Texas Pipeline
     Company.

 (e) Occidental's chromium business and Brazilian vinyl operations
     have been reclassified to discontinued operations. Occidental
     announced on October 11, 2002 it has agreed to sell its chromium
     chemical business to Elementis plc.  As a result of the pending
     sale, Occidental recognized an after-tax loss of $30 million in
     the third quarter 2002.  Occidental is currently in discussions
     with a buyer for its Brazilian vinyl operations.  Occidental
     recognized a loss of $39 million related to write-down of these
     assets in the third quarter 2002.

 SUMMARY OF OPERATING STATISTICS

                                      Third Quarter       Nine Months
 Periods Ended September 30           2002     2001     2002     2001
 --------------------------          -----    -----    -----    -----

 NET OIL, GAS AND LIQUIDS
    PRODUCTION PER DAY

 United States
   Crude oil and liquids (MBBL)
     California                          84       78       87       75
     Permian                            143      137      141      136
     Other                                3       --        3       --
                                     ------   ------   ------   ------
       Total                            230      215      231      211

   Natural Gas (MMCF)
     California                         283      302      293      305
     Hugoton                            149      154      152      161
     Permian                            132      146      129      147
                                     ------   ------   ------   ------
       Total                            564      602      574      613

 Latin America
    Crude oil and condensate (MBBL)
     Colombia                            33       35       34       19
     Ecuador                             13       13       13       13
                                     ------   ------   ------   ------
       Total                             46       48       47       32

 Eastern Hemisphere
   Crude oil and condensate (MBBL)
     Oman                                 9       10       14       10
     Pakistan                            12        7       10        7


     Qatar                               44       45       43       43
     Russia                              26       27       27       27
     Yemen                               29       32       36       33
                                     ------   ------   ------   ------
       Total                            120      121      130      120

   Natural Gas (MMCF)
     Pakistan                            74       50       58       49

 Barrels of Oil Equivalent (MBOE)       502      493      513      473

 CAPITAL EXPENDITURES (millions)    $   283  $   395  $   840  $   908

                                     ------   ------   ------   ------
 DEPRECIATION, DEPLETION AND
  AMORTIZATION OF ASSETS (millions) $   245  $   243  $   759  $   722
 --------------------------           -----    -----    -----    -----

-0-                          10/21/2002
CONTACT:  Occidental Petroleum Corporation
           Lawrence P. Meriage, Media
            310-443-6562
           Kenneth J. Huffman, Investors
            212-603-8183
          www.oxy.com
                                                                   

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