SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 11-K

 

(Mark One)

 

x                              ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

 

For the fiscal year ended December 31, 2007

 

OR

 

o                                 TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

 

For the transition period from                          to                         

 

Commission file number:  1-9210

 

A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:

 

Occidental Petroleum Corporation Savings Plan

 

B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

Occidental Petroleum Corporation

10889 Wilshire Boulevard

Los Angeles, California 90024

 

 



 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Occidental Petroleum Corporation Savings Plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

OCCIDENTAL PETROLEUM CORPORATION

 

 

SAVINGS PLAN

 

 

 

 

 

 

 

 

 

By

/s/ JIM A. LEONARD

 

 

 

Jim A. Leonard - Member of the

 

 

 

Occidental Petroleum Corporation

 

 

 

Pension and Retirement Plan Administrative Committee

 

 

 

 

 

 

 

 

Dated: June 27, 2008

 

 

 



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

 

Index

 

 

Page

 

 

Report of Independent Registered Public Accounting Firm

1

 

 

Statements of Net Assets Available for Benefits – December 31, 2007 and 2006

2

 

 

Statements of Changes in Net Assets Available for Benefits – Years ended December 31, 2007 and 2006

3

 

 

Notes to Financial Statements

4

 

 

Supplemental Schedules

 

 

 

1

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) – December 31, 2007

18

 

 

 

2

Schedule H, Line 4j – Schedule of Reportable Transactions – Year ended December 31, 2007

20

 

 

 

3

Schedule H, Line 4a – Schedule of Delinquent Participant Loan Repayments – Year ended December 31, 2007

21

 

Note:

Other supplemental schedules have been omitted because they are not applicable or are not required by 29 CFR 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended.

 



 

Report of Independent Registered Public Accounting Firm

 

The Occidental Petroleum Corporation
    Pension and Retirement Plan Administrative Committee:

 

We have audited the accompanying statements of net assets available for benefits of the Occidental Petroleum Corporation Savings Plan (the Plan) as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2007 and 2006, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

 

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of Schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2007, Schedule H, line 4j – schedule of reportable transactions for the year ended December 31, 2007 and Schedule H, line 4a – schedule of delinquent participant loan repayments for the year ended December 31, 2007 are presented for purposes of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended (ERISA). These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

/s/ KPMG LLP

Los Angeles, California
June 25, 2008

 



 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Statements of Net Assets Available for Benefits

 

December 31, 2007 and 2006

 

(Amounts in thousands)

 

 

 

2007

 

2006

 

Assets:

 

 

 

 

 

Investments:

 

 

 

 

 

At fair value:

 

 

 

 

 

Money market account

 

$

6,521

 

15,512

 

Common/collective trust

 

15,901

 

19,230

 

Common stock

 

1,060,282

 

763,408

 

Mutual funds

 

591,317

 

531,670

 

Participant loans

 

22,464

 

22,359

 

Plan interest in master trust accounts

 

407,180

 

362,295

 

Total investments

 

2,103,665

 

1,714,474

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Interest and dividends

 

25,692

 

10,671

 

Due from broker for securities sold

 

7,821

 

 

Total receivables

 

33,513

 

10,671

 

Total assets

 

2,137,178

 

1,725,145

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Payables under securities lending agreement

 

6,521

 

15,512

 

Due to broker for securities purchased

 

25,912

 

9,822

 

Total liabilities

 

32,433

 

25,334

 

Net assets available for benefits at fair value

 

2,104,745

 

1,699,811

 

 

 

 

 

 

 

Adjustment from fair value to contract value for interest in master trust account relating to fully benefit responsive investment contracts

 

(3,157

)

2,790

 

Net assets available for benefits

 

$

2,101,588

 

1,702,601

 

 

See accompanying notes to financial statements.

 

2



 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Statements of Changes in Net Assets Available for Benefits

 

Years ended December 31, 2007 and 2006

 

(Amounts in thousands)

 

 

 

2007

 

2006

 

Additions:

 

 

 

 

 

Additions to net assets attributable to:

 

 

 

 

 

Investment income:

 

 

 

 

 

Interest

 

$

1,568

 

1,480

 

Dividends

 

33,839

 

31,486

 

Net appreciation in fair value of investments

 

396,578

 

203,384

 

Plan interest in master trust accounts investment income

 

13,110

 

23,134

 

Total investment income

 

445,095

 

259,484

 

 

 

 

 

 

 

Contributions:

 

 

 

 

 

Participant

 

63,231

 

54,080

 

Employer

 

34,781

 

27,614

 

Participant rollovers

 

3,901

 

8,242

 

Total contributions

 

101,913

 

89,936

 

Total additions

 

547,008

 

349,420

 

 

 

 

 

 

 

Deductions:

 

 

 

 

 

Deductions from net assets attributable to:

 

 

 

 

 

Benefits paid to participants

 

147,227

 

130,036

 

Plan expenses

 

794

 

743

 

Total deductions

 

148,021

 

130,779

 

Net increase

 

398,987

 

218,641

 

 

 

 

 

 

 

Net assets available for benefits:

 

 

 

 

 

Beginning of year

 

1,702,601

 

1,483,960

 

End of year

 

$

2,101,588

 

1,702,601

 

 

See accompanying notes to financial statements.

 

3



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

(1)       Description of the Plan

 

The following description of the Occidental Petroleum Corporation Savings Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

 

(a)       General

 

The Plan is a defined contribution plan generally available to certain employees of Occidental Petroleum Corporation (OPC, Oxy, or the Employer), a Delaware corporation, and participating subsidiaries (collectively, the Company). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

 

(b)       Plan Administration

 

The Plan is administered by the OPC Pension and Retirement Trust and Investment Committee (PARTAIC) as to investment decisions and by the OPC Pension and Retirement Plan Administrative Committee (PARPAC) as to all matters except investment decisions (these two committees are herein referred to collectively as the Committees). Members of the Committees are selected by the board of directors of OPC (the Board). The Committees have been given all powers necessary to carry out their respective duties, including, but not limited to, the power to administer and interpret the Plan and to answer all questions affecting eligibility of participants. Bank of New York Trust Company (the Trustee) is the trustee and custodian of the trust fund, which holds all of the assets of the Plan.

 

(c)      Contributions

 

Participant Contributions – Each year, participants may contribute up to the maximum contribution percentage of compensation to the Plan on a before- or after-tax basis, or in any combination thereof, subject to certain Internal Revenue Code (IRC) limitations. For 2007, the deferral percentage limits were 27.0% for non-Highly Compensated Employees (non-HCEs) and 14.0% for Highly Compensated Employees (HCEs). For 2006, the deferral percentage limits were 30.7% for non-HCEs and 14.0% for HCEs. Participants age 50 or older by the end of the Plan year were permitted to contribute before-tax catch-up contributions to the Plan up to $5,000 for the 2007 and 2006 Plan years.

 

Employer Matching Contributions – For noncollectively bargained employees, the Company contributes an amount equal to 100% of a participant’s contribution up to the first 6% of eligible compensation. For collectively bargained employees, the Company contributes 50%, 65%, 75%, 90%, or 100% as negotiated by their respective unions, of the first 6% of eligible compensation that a participant contributes to the Plan. All Employer contributions are invested in the Occidental Petroleum Corporation Common Stock Fund (the Oxy Stock Fund).

 

(continued)

 

4



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

(d)       Participant Accounts

 

Each participant’s account is credited with the participant’s elected contribution, the Employer’s respective matching contribution, and allocations of Plan earnings, and charged with an allocation of Plan investment losses, investment manager fees and Trustee fees. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

 

(e)      Vesting

 

Participants are vested immediately in their contributions plus actual earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of continuous service. Effective January 1, 2007, participants hired by the Company prior to January 1, 2007 vested 20% for each full year of service for the first two years and 100% vested after the third year. Participants that were hired after January 1, 2007 vest 100% after 3 years of vesting service.

 

(f)        Participant Loans

 

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of: (i) $50,000 reduced by the highest outstanding principal loan balance during the preceding 12 months, (ii) 50% of their account balance, or (iii) a loan amount that would require monthly payroll deductions for repayment not greater than 25% of the participant’s monthly base compensation. Loan terms range from one to five years for general purpose loans and six to ten years for primary residence loans. The loans are secured by the balance in the participant’s account and generally bear interest at a fixed rate equal to the Western Federal Credit Union’s loan rate for a loan secured by a member’s deposit account at the time the loan is approved. Interest rates ranged from 2% to 12% on loans outstanding as of December 31, 2007 and 2006. Principal and interest are paid ratably through monthly payroll deductions.

 

(g)       Distributions

 

Generally, on termination of service for any reason other than death, participants with an account balance greater than $5,000 may elect to receive the vested portion of their account under one of the following distribution options: (i) one lump-sum payment, (ii) straight-life annuity, (iii) ten-year term certain annuity, (iv) joint and survivor annuity, (v) partial cash distribution, or (vi) deferral of payment with certain restrictions. Upon termination of service due to death, the beneficiary may elect to receive the vested interest in the form of (i), (ii), (iii), or (vi) only. A participant whose vested account balance is $5,000 or less may receive distributions only under options (i), (v), or (vi). Participants may elect to receive distributions from their account balance in the Oxy Stock Fund in cash or in shares of OPC common stock.

 

(h)       Forfeited Accounts

 

Forfeited nonvested accounts are used to pay reasonable costs of administering the Plan and reduce employer contributions. During 2007 and 2006, employer contributions were reduced by approximately $698,000 and $638,000, respectively, from forfeited nonvested accounts. At

 

(continued)

 

5



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

December 31, 2007 and 2006, forfeited nonvested accounts totaled approximately $225,000 and $223,000, respectively. These accounts will be used to reduce future contributions.

 

(i)        Plan Amendments

 

Effective July 1, 2006, the Plan’s definition of eligible compensation was amended to include base salary or wages received during paid leaves of absence and periodic notice pay, but not single-sum notice payments or any severance pay payments.

 

The Board approved a resolution amending the Plan to permit all participants, regardless of age, who are 100% vested in the Plan to diversify all or a portion of their employer matching account invested in the Oxy Stock Fund among the other Plan investment options on any trading day effective July 1, 2006.

 

In addition, the Committees, in their June 14, 2006 meeting, decided to close the Oxy Stock Fund as a participant investment option. Thus, effective July 1, 2006, participants were no longer permitted to invest any portion of their employee contributions (including before-tax, after-tax, and rollover) into the Oxy Stock Fund.

 

Effective January 1, 2007, the Plan was amended to include bonus, up to $100,000, in calculating a non-named executive officer participant’s elective deferrals and matching contribution.

 

Beginning on March 31, 2007, the Oxy Stock Fund reopened to employee contributions (up to 55% of future employee contributions, including before-tax, after-tax and rollover), and balance transfer amounts from other investments funds in the Plan (up to 55% of the amount transferred).

 

Beginning June 1, 2007, transfers into the Oxy Stock Fund were limited to 55% of a Participant’s total Plan account balance.

 

Effective July 19, 2007, the Plan was amended to designate the Oxy Stock Fund as the employee stock ownership plan, where previously only the Oxy Stock held in the Matching Account was designated as the employee stock ownership plan.

 

(2)       Summary of Significant Accounting Policies

 

(a)       Basis of Accounting

 

The financial statements of the Plan are prepared under the accrual method of accounting.

 

(b)       Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

 

(continued)

 

6



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

(c)        Investment Valuation and Income Recognition

 

As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans (the FSP), investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount the participant would receive if they were to initiate permitted transactions under the terms of the plan. As required by the FSP, the statement of net assets available for benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is prepared on a contract value basis.

 

The Plan’s investments are stated at fair value. If available, quoted market prices are used to value investments. Shares of mutual funds are valued at the net asset value of shares held by the Plan at year-end. Participant loans are valued at cost, which approximates fair value. The common/collective trust is valued by the issuer based on quoted prices of the underlying securities.

 

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.

 

(d)       Payment of Benefits

 

Benefits are recorded when paid.

 

(3)       Investments

 

The following presents investments that represent 5% or more of the Plan’s net assets (amounts in thousands):

 

 

 

December 31

 

 

 

2007

 

2006

 

Oxy stock*

 

$

1,019,729

 

715,677

 

Invesco Stable Value Fund (GIC MTIA)

 

332,985

 

286,847

 

MFO Vanguard Employee Benefit Index Fund

 

184,129

 

175,431

 

MFO Dodge & Cox Balanced Fund

 

88,236

**

91,325

 

All other investments less than 5%

 

478,586

 

445,194

 

Total investments

 

$

2,103,665

 

1,714,474

 

 

*      Participant- and nonparticipant-directed.

**   Less than 5%, included for comparative purposes.

 

(continued)

 

7



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

During 2007 and 2006, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows (amounts in thousands):

 

 

 

2007

 

2006

 

Common stock

 

$

389,269

 

152,764

 

Mutual funds

 

7,309

 

50,620

 

 

 

$

396,578

 

203,384

 

 

The Plan participated in the Trustee’s Securities Lending Program for its U.S. securities held in custody at the Trustee. These securities are loaned by the Trustee to third-party broker-dealers in exchange for collateral (primarily cash), in compliance with Department of Labor collateral requirements. For U.S. securities, the collateral is at least 102% of the fair value of the borrowed securities. The cash received as collateral is invested in the Trustee’s Institutional Cash Reserves Fund, which is a money market fund. The fair value of securities loaned was approximately $6,292,000 and $14,982,000 at December 31, 2007 and 2006, respectively. Cash collateral of approximately $6,521,000 and $15,512,000 was held at December 31, 2007 and 2006, respectively, with an offsetting liability.

 

The Plan and the Trustee each receive a percentage of net income derived from securities lending activities based on the types of securities. Income earned was approximately $12,000 and $5,000 for 2007 and 2006, respectively, net of bank fees of approximately $6,000 and $3,000, respectively. This income is included in investment income as interest in the accompanying statements of changes in net assets available for benefits.

 

(4)       Oxy Stock Fund

 

Information regarding the net assets and the significant components of the changes in net assets relating to the Oxy Stock Fund, which includes both participant-directed and non participant-directed investments, is as follows (amounts in thousands):

 

 

 

December 31

 

 

 

2007

 

2006

 

Net assets:

 

 

 

 

 

Oxy Stock Fund

 

$

1,036,427

 

734,490

 

 

(continued)

 

8



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

 

 

Year ended December 31

 

 

 

2007

 

2006

 

Changes in net assets:

 

 

 

 

 

Contributions

 

$

37,642

 

32,681

 

Investment income

 

13,918

 

14,941

 

Net appreciation in fair value of investments

 

390,882

 

145,886

 

Transfers between funds

 

(92,229

)

(72,562

)

Benefits paid to participants

 

(48,169

)

(53,629

)

Administrative expenses

 

(107

)

(114

)

 

 

$

301,937

 

67,203

 

 

(5)       Plan Interest in Master Trust Accounts

 

The Plan invests in three Master Trust Investment Accounts (MTIA), a guaranteed investment contract (GIC) fund managed by Invesco (GIC MTIA, also known as the Invesco Stable Value Fund), a convertible bond fund managed by Advent Capital Management (Advent MTIA), and a small cap equity fund managed by Alliance Bernstein Institutional Investment Management (Bernstein MTIA). The Plan and the OPC Retirement Plan each own an undivided interest in the GIC MTIA. The Plan and the OPC Master Retirement Trust (MRT) each own an undivided interest in the Advent MTIA and Bernstein MTIA.

 

The following table presents the fair value of the net assets held by the GIC MTIA, in which the Plan owns an undivided interest (amounts in thousands):

 

 

 

December 31

 

 

 

2007

 

2006

 

Net assets of GIC MTIA:

 

 

 

 

 

Assets:

 

 

 

 

 

Guaranteed investment contracts, at fair value

 

$

546,387

 

500,173

 

Short-term Investment Fund

 

16,587

 

12,781

 

Due from broker for securities sold

 

(252

)

1,624

 

Accrued expense

 

(231

)

(167

)

Accrued investment income

 

41

 

45

 

 

 

$

562,532

 

514,456

 

Plan’s percentage interest in GIC MTIA net assets

 

59

%

56

%

Plan interest in GIC MTIA

 

$

332,985

 

286,847

 

 

(continued)

 

9



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

The following table presents the investment income earned by the GIC MTIA, in which the Plan owns an undivided interest, as stated in the table above (amounts in thousands):

 

 

 

Year ended December 31

 

 

 

2007

 

2006

 

Investment income:

 

 

 

 

 

Net appreciation in contract value of investments

 

$

25,676

 

24,487

 

Less investment expenses

 

(412

)

(404

)

 

 

$

25,264

 

24,083

 

 

The Plan’s interest in the net change (including investment income, additions, and deductions) in the GIC MTIA for the years ended December 31, 2007 and 2006 were approximately $14,477,000 and $13,060,000, respectively. The GICs are valued at fair value because they are fully benefit responsive. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.

 

Withdrawals resulting from events initiated by the Company, such as Plan termination, are not typically considered participant-initiated transactions. With such an event, some of the contracts contain contingencies that could lead to withdrawal penalties. The Committees are not aware of any such event being contemplated at this time.

 

Contract value for the synthetic GICs is determined based on the fair value of the assets underlying the synthetic GICs. The difference between the fair value of the assets underlying the synthetic GICs and the contract value of the GICs is the value of the “wrapper” contract issued by a third party. Fair value of the nonparticipating synthetic GICs is determined using a discounted cash flow method. Based on its duration, the estimated cash flow of each contract is discounted using a yield curve interpolated from swap rates and adjusted for liquidity and credit quality. Fair value for security-backed investment contracts was derived from third-party sources, based on the type of investment held.

 

GICs provide a fixed crediting interest rate, and a financially responsible entity guarantees liquidity at contract value prior to maturity for any and all participant-initiated benefit withdrawals, loans, or transfers arising under the terms of the respective participating Plan, which allows access for all participants.

 

Synthetic GICs operate similarly to a separate account GIC, except that the assets are placed in a trust with ownership by GIC MTIA rather than a separate account of the issuer and a financially responsible third party issues a wrapper contract that provides that participants must execute Plan transactions at contract value.

 

During 2007 and 2006, the average yield earned on amounts invested in the GICs was 5.01% and 4.92%, respectively. As of December 31, 2007 and 2006, the average crediting interest rate on such contracts was 4.47% and 5.07%, respectively. There were no valuation allowances recorded to adjust contract amounts during the Plan years ended December 31, 2007 and 2006. Crediting interest rate resets are applied to specific investment contracts, as determined at the time of purchase. The reset

 

(continued)

 

10



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

values for security-backed investment interest rates are a function of contract value, market value, yield, and duration. General account investment rates are based on a predetermined index rate of return plus a fixed-basis point spread.

 

The following reconciliation is between the contract value and the fair value of the investments in the GIC MTIA at December 31, 2007 (amounts in thousands):

 

 

 

 

 

Crediting

 

 

 

 

 

 

 

Duration

 

interest rate

 

Contract

 

Fair

 

 

 

(years)

 

percentage

 

value

 

value

 

Security-backed investments:

 

 

 

 

 

 

 

 

 

Synthetics:

 

 

 

 

 

 

 

 

 

Bank of America NT & SA

 

2.26

 

4.77

%

$

60,260

 

61,061

 

ING Life Ins & Ann Co (#60032)

 

2.26

 

4.35

 

72,114

 

72,487

 

JP Morgan Chase

 

3.69

 

5.08

 

96,441

 

97,967

 

Monumental Life Ins. Co. (#00595)

 

4.26

 

5.53

 

83,114

 

82,922

 

Pacific Life Insurance

 

2.26

 

4.71

 

72,398

 

73,276

 

State Street Bank

 

3.69

 

4.99

 

96,383

 

97,642

 

UBS AG

 

2.26

 

4.67

 

60,343

 

61,032

 

Total synthetics

 

 

 

 

 

541,053

 

546,387

 

 

 

 

 

 

 

 

 

 

 

Short-term investment fund:

 

 

 

 

 

 

 

 

 

Bank of New York

 

 

 

 

 

16,587

 

16,587

 

Total guaranteed investment contracts

 

 

 

 

 

557,640

 

562,974

 

 

 

 

 

 

 

 

 

 

 

Synthetic wrappers

 

 

 

 

 

 

(5,334

)

Total contract value of guaranteed investment contracts

 

 

 

 

 

$

557,640

 

557,640

 

 

(continued)

 

11



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

The following reconciliation is between the contract value and the fair value of the investments in the GIC MTIA at December 31, 2006 (amounts in thousands):

 

 

 

 

 

Crediting

 

 

 

 

 

 

 

Duration

 

interest rate

 

Contract

 

Fair

 

 

 

(years)

 

percentage

 

value

 

value

 

Security-backed investments:

 

 

 

 

 

 

 

 

 

Synthetics:

 

 

 

 

 

 

 

 

 

Bank of America NT & SA

 

1.98

 

5.25

%

$

53,557

 

53,540

 

ING Life Ins & Ann Co (#60032)

 

2.28

 

4.52

 

71,017

 

69,972

 

JP Morgan Chase

 

3.54

 

5.06

 

93,052

 

91,996

 

Monumental Life Ins. Co. (#00595)

 

4.36

 

5.05

 

78,101

 

77,113

 

Pacific Life Insurance

 

2.28

 

5.05

 

67,233

 

66,932

 

State Street Bank

 

3.54

 

4.95

 

88,960

 

87,577

 

UBS AG

 

1.98

 

5.05

 

53,257

 

53,043

 

Total synthetics

 

 

 

 

 

505,177

 

500,173

 

 

 

 

 

 

 

 

 

 

 

Short-term investment fund:

 

 

 

 

 

 

 

 

 

Bank of New York

 

 

 

 

 

12,781

 

12,781

 

Total guaranteed investment contracts

 

 

 

 

 

517,958

 

512,954

 

 

 

 

 

 

 

 

 

 

 

Synthetic wrappers

 

 

 

 

 

 

5,004

 

Total contract value of guaranteed investment contracts

 

 

 

 

 

$

517,958

 

517,958

 

 

(continued)

 

12



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2007 and 2006

 

The following table presents the fair value of the net assets held by the Advent MTIA, in which the Plan owns an undivided interest (amounts in thousands):

 

 

 

December 31

 

 

 

2007

 

2006

 

Assets of Advent MTIA:

 

 

 

 

 

Assets:

 

 

 

 

 

Investments at fair value as determined by quoted market price:

 

 

 

 

 

Short-term investments

 

$

848

 

471

 

Collateral received for securities loaned

 

7,300

 

5,819

 

Common stock

 

3,190

 

3,015

 

Preferred stock

 

15,048

 

9,093

 

Corporate bonds

 

19,291

 

19,287

 

Total investments

 

45,677

 

37,685

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Due from broker for securities sold

 

454

 

15

 

Accrued investment income

 

147

 

143

 

Total receivables

 

601

 

158

 

Total assets

 

46,278

 

37,843

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Payable under securities lending agreement

 

7,300

 

5,819

 

Total liabilities

 

7,300

 

5,819

 

Net assets of Advent MTIA

 

$

38,978

 

32,024

 

Plan’s percentage interest in Advent MTIA net assets

 

24

%

15

%

Plan interest in Advent MTIA

 

$

9,456

 

4,810

 

 

(continued)

 

13



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

The following table presents the investment income earned by the Advent MTIA, in which the Plan owns an undivided interest, as stated in the table above (amounts in thousands):

 

 

 

Year ended December 31

 

 

 

2007

 

2006

 

Investment income:

 

 

 

 

 

Net appreciation in fair value of investments:

 

 

 

 

 

Common stock

 

$

818

 

496

 

Preferred stock

 

696

 

766

 

Corporate bonds

 

466

 

1,034

 

 

 

1,980

 

2,296

 

Interest and dividends

 

1,009

 

886

 

Less investment expenses

 

(254

)

(219

)

 

 

$

2,735

 

2,963

 

 

The Plan’s interest in the net change (including investment income, additions, and deductions) in the Advent MTIA for the years ended December 31, 2007 and 2006 was approximately $426,000 and $391,000, respectively.

 

The Advent MTIA participated in the Trustee’s Securities Lending Program for its U.S. securities held in custody at the Trustee to provide incremental income in 2007 and 2006. These securities are loaned by the Trustee to third-party broker-dealers in exchange for collateral (primarily cash), in compliance with Department of Labor collateral requirements. For U.S. securities, the collateral is at least 102% of the fair value of the borrowed securities. The cash received as collateral is invested in the Trustee’s Institutional Cash Reserves Fund, which is a money market fund. The fair value of securities loaned was approximately $7,088,000 and $5,700,000 at December 31, 2007 and 2006, respectively. Cash collateral of approximately $7,300,000 and $5,819,000 was held at December 31, 2007 and 2006, respectively, with an offsetting liability.

 

The Advent MTIA and the Trustee each receive a percentage of net income derived from securities lending activities based on the types of securities. Income earned during 2007 and 2006 was approximately $17,000 and $12,000, respectively, which is included in interest and dividends net of bank fees of approximately $9,000 and $6,000, respectively.

 

(continued)

 

14



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

Notes to Financial Statements

December 31, 2007 and 2006

 

The following table presents the fair value of net assets held by the Bernstein MTIA in which the Plan owns an undivided interest (amounts in thousands):

 

 

 

December 31

 

 

 

2007

 

2006

 

Assets of Bernstein MTIA:

 

 

 

 

 

Assets:

 

 

 

 

 

Investments at fair value as determined by quoted market price:

 

 

 

 

 

Short-term investments

 

$

1,038

 

5,395

 

Collateral received for securities loaned

 

61,138

 

27,807

 

Common stock

 

133,034

 

137,030

 

Total investments

 

195,210

 

170,232

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Due from broker for securities sold

 

584

 

174

 

Accrued investment income

 

167

 

179

 

Total receivables

 

751

 

353

 

Total assets

 

195,961

 

170,585

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Due to broker for securities purchased

 

42

 

725

 

Payable under securities lending agreement

 

61,138

 

27,807

 

Total liabilities

 

61,180

 

28,532

 

Net assets of Bernstein MTIA

 

$

134,781

 

142,053

 

Plan’s percentage interest in Bernstein MTIA net assets

 

48

%

50

%

Plan interest in Bernstein MTIA

 

$

64,739

 

70,638

 

 

The following table presents the investment income (loss) earned by the Bernstein MTIA, in which the Plan owns an undivided interest, as stated in the table above (amounts in thousands):

 

 

 

Year ended December 31

 

 

 

2007

 

2006

 

Investment income (loss):

 

 

 

 

 

Net appreciation (depreciation) in fair value of investments:

 

 

 

 

 

Common stock

 

$

(4,293

)

18,424

 

Interest and dividends

 

2,271

 

2,314

 

Less investment expenses

 

(1,145

)

(968

)

 

 

$

(3,167

)

19,770

 

 

(continued)

 

15



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2007 and 2006

 

The Plan’s interest in the net change (including investment income, additions, and deductions) in the Bernstein MTIA for the years ended December 31, 2007 and 2006 was $(1,793,000) and $9,683,000, respectively.

 

The Bernstein MTIA participated in the Trustee’s Securities Lending Program for its U.S. securities held in custody at the Trustee to provide incremental income in 2007 and 2006. These securities are loaned by the Trustee to third-party broker-dealers in exchange for collateral (primarily cash), in compliance with Department of Labor collateral requirements. For U.S. securities, the collateral is at least 102% of the fair value of the borrowed securities. The cash received as collateral is invested in the Trustee’s Institutional Cash Reserves Fund, which is a money market fund. The fair value of securities loaned was approximately $58,814,000 and $27,034,000 at December 31, 2007 and 2006, respectively. Cash collateral of approximately $61,138,000 and $27,807,000 was held at December 31, 2007 and 2006, respectively, with an offsetting liability.

 

The Bernstein MTIA and the Trustee each receive a percentage of net income derived from securities lending activities based on the types of securities. Income earned during 2007 and 2006 was approximately $82,000 and $45,000, respectively, net of bank fees of approximately $44,000 and $24,000, respectively.

 

(6)                     Related-Party Transactions

 

The Trustee and OPC are parties in interest as defined by ERISA. The Trustee invests certain Plan assets in its Collective Short-Term Investment Fund and the Oxy Stock Fund. Such transactions qualify as party-in-interest transactions permitted by the Department of Labor regulations. The Plan paid about $329,000 and $310,000 to the Trustee for the years ended December 31, 2007 and 2006, respectively.

 

(7)                     Plan Termination

 

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their Employer contributions.

 

(8)                     Tax Status

 

The Internal Revenue Service has determined and informed the Company, by a letter dated June 14, 2004, that the Plan and related trust are designed in accordance with applicable sections of the IRC. Although the Plan has been amended since receiving the determination letter, the Committees, using their judgment and the advice of their advisors, believe that the Plan is currently designed and operating in a manner that preserves its tax-qualified status.

 

(9)                     Risks and Uncertainties

 

The Plan invests in various types of investment securities, including mutual funds, actively managed funds, and the Oxy Stock Fund. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participant’s account balance and the amounts reported in the statements of net assets available for benefits.

 

(continued)

 

16



 

OCCIDENTAL PETROLEUM CORPORATION
SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2007 and 2006

 

Additionally, some mutual funds invest in the securities of foreign companies, which involve special risks and considerations not typically associated with investing in U.S. companies. These risks include devaluation of currencies, less reliable information about issuers, different securities transaction clearance and settlement practices, and possible adverse political and economic developments. Moreover, securities of many foreign companies and their markets may be less liquid and their prices more volatile than similar types of securities of comparable U.S. companies.

 

Derivative financial instruments are used by the Plan’s equity and fixed-income investment managers to remain fully invested in the asset class and to hedge currency risk. Leveraging of the Plan assets and speculation by the Plan are prohibited.

 

As of December 31, 2007 and 2006, approximately 48% and 42%, respectively, of total Plan investments were invested in Oxy stock.

 

(10)              Reconciliation of the Financial Statements to the Form 5500

 

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 (amounts in thousands):

 

 

 

2007

 

2006

 

Net assets available for benefits per the financial statements

 

$

2,101,588

 

1,702,601

 

Amounts allocated to withdrawing participants

 

(1,879

)

(429

)

Net assets available for benefits per the Form 5500

 

$

2,099,709

 

1,702,172

 

 

The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 for the years ended December 31, 2007 and 2006 (amounts in thousands):

 

 

 

2007

 

2006

 

Benefits paid to participants per the financial statements

 

$

147,227

 

130,036

 

Amounts allocated to withdrawing participants at December 31, 2007

 

1,879

 

 

Amounts allocated to withdrawing participants at December 31, 2006

 

(429

)

429

 

Amounts allocated to withdrawing participants at December 31, 2005

 

 

(719

)

Benefits paid to participants per the Form 5500

 

$

148,677

 

129,746

 

 

Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit payments that have been processed and approved for payment prior to December 31, but are not yet paid as of that date.

 

17



 

Schedule 1

 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

December 31, 2007

 

(Dollar amounts in thousands)

 

 

 

 

 

(c)

 

 

 

 

 

 

 

 

 

Description of investment,

 

 

 

 

 

(a)

 

(b)

 

including maturity date, rate of

 

 

 

(e)

 

Related

 

Identity of issue, borrower,

 

interest, collateral, par, maturity

 

(d)

 

Current

 

party

 

lessor, or similar party

 

value, or duration

 

Cost(1)

 

value

 

*

 

Money market account:

 

 

 

 

 

 

 

 

 

BNY Institutional Cash Reserves Fund(2)

 

Cash collateral under securities lending agreement with obligation to return

 

$

6,292

 

$

6,521

 

*

 

Common collective trust:

 

 

 

 

 

 

 

 

 

BNY Short-Term Investment Fund

 

A collective trust investing in short-term securities, 15,900,488 units

 

 

 

15,901

 

 

 

Common stock:

 

 

 

 

 

 

 

 

 

Alcoa Inc.

 

Common stock, 17,800 shares

 

 

 

651

 

 

 

Altria Group Inc. (fka Phillip Morris)

 

Common stock, 22,900 shares

 

 

 

1,731

 

 

 

American Electric Pwr Co. Inc.

 

Common stock, 9,100 shares

 

 

 

424

 

 

 

American International Group Inc.

 

Common stock, 21,000 shares

 

 

 

1,224

 

 

 

Amerisourcebergen Corp.

 

Common stock, 11,000 shares

 

 

 

494

 

 

 

Arcelormittal SA Luxembourg(3)

 

Common stock, 10,400 shares

 

 

 

804

 

 

 

AT&T Inc.

 

Common stock, 39,000 shares

 

 

 

1,621

 

 

 

Autoliv Inc. Com

 

Common stock, 4,300 shares

 

 

 

227

 

 

 

Bank of America Corp.

 

Common stock, 38,200 shares

 

 

 

1,576

 

 

 

Black & Decker Corp.(3)

 

Common stock, 5,200 shares

 

 

 

362

 

 

 

Borg Warner Inc.

 

Common stock, 6,200 shares

 

 

 

300

 

 

 

BP PLC Spons ADR

 

Common stock, 12,000 shares

 

 

 

878

 

 

 

Caterpillar Inc.

 

Common stock, 4,400 shares

 

 

 

319

 

 

 

CBS Corp. New(3)

 

Common stock, 22,900 shares

 

 

 

624

 

 

 

ChevronTexaco Corp.

 

Common stock, 17,900 shares

 

 

 

1,670

 

 

 

Citigroup Inc.

 

Common stock, 13,100 shares

 

 

 

386

 

 

 

Clorox Company

 

Common stock, 3,900 shares

 

 

 

254

 

 

 

Conocophillips

 

Common stock, 19,500 shares

 

 

 

1,722

 

 

 

Convidien Ltd(3)

 

Common stock, 5,850 shares

 

 

 

259

 

 

 

Deutsche Bank NPV(3)

 

Common stock, 2,700 shares

 

 

 

349

 

 

 

Dow Chemical Company Common

 

Common stock, 20,800 shares

 

 

 

820

 

 

 

Eaton Corp.

 

Common stock, 3,100 shares

 

 

 

301

 

 

 

Entergy Corp. New(3)

 

Common stock, 2,700 shares

 

 

 

323

 

 

 

Exxon Mobil Corp.

 

Common stock, 20,000 shares

 

 

 

1,874

 

 

 

Federal Home Loan Mtg. Corp.

 

Common stock, 15,200 shares

 

 

 

518

 

 

 

Federal Natl Mtg. Assn.

 

Common stock, 7,100 shares

 

 

 

284

 

 

 

Fidelity Natl Financial Inc.

 

Common stock, 8,900 shares

 

 

 

130

 

 

 

Flextronics Intl Ltd.

 

Common stock, 32,600 shares

 

 

 

393

 

 

 

General Electric Co.

 

Common stock, 20,000 shares

 

 

 

741

 

 

 

General Motors Corp.(3)

 

Common stock, 12,300 shares

 

 

 

306

 

 

 

Genworth Financial Inc

 

Common stock, 17,500 shares

 

 

 

445

 

 

 

Goldman Sachs Group Inc.

 

Common stock, 2,100 shares

 

 

 

452

 

 

 

Ingersoll Rand Co.

 

Common stock, 10,200 shares

 

 

 

474

 

 

 

International Business Machines Corp.(3)

 

Common stock, 8,500 shares

 

 

 

919

 

 

 

JPMorgan Chase & Co.

 

Common stock, 31,600 shares

 

 

 

1,379

 

 

 

KB Home(3)

 

Common stock, 9,200 shares

 

 

 

199

 

 

 

Kroger Co.(3)

 

Common stock, 12,700 shares

 

 

 

339

 

 

 

Macys Inc.

 

Common stock, 22,700 shares

 

 

 

587

 

 

 

Marathon Oil Corp.

 

Common stock, 12,000 shares

 

 

 

730

 

 

 

MBIA Inc.(3)

 

Common stock, 5,300 shares

 

 

 

99

 

 

 

Mckesson Corp.

 

Common stock, 9,900 shares

 

 

 

649

 

 

 

Merck & Co. Inc.

 

Common stock, 6,600 shares

 

 

 

384

 

 

 

Merrill Lynch & Co. Inc.

 

Common stock, 12,500 shares

 

 

 

671

 

 

 

Metlife Inc.

 

Common stock, 19,400 shares

 

 

 

1,195

 

 

 

Microsoft Corp.

 

Common stock, 9,000 shares

 

 

 

320

 

 

 

Morgan Stanley Co.

 

Common stock, 14,000 shares

 

 

 

744

 

 

 

Nokia Corp.

 

Common stock, 7,600 shares

 

 

 

292

 

 

 

Northrop Grumman Corp.

 

Common stock, 9,500 shares

 

 

 

747

 

*

 

Occidental Petroleum Corp.(4)

 

Common stock, 13,244,958 shares

 

168,918

 

1,019,729

 

 

(continued)

 

18



 

Schedule 1-2

 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

December 31, 2007

 

(Dollar amounts in thousands)

 

 

 

 

 

(c)

 

 

 

 

 

 

 

 

 

Description of investment,

 

 

 

 

 

(a)

 

(b)

 

including maturity date, rate of

 

 

 

(e)

 

Related

 

Identity of issue, borrower,

 

interest, collateral, par, maturity

 

(d)

 

Current

 

party

 

lessor, or similar party

 

value, or duration

 

Cost(1)

 

value

 

 

 

Office Depot Inc.

 

Common stock, 9,500 shares

 

$

 

 

$

132

 

 

 

Parker Hannifin Corp.

 

Common stock, 3,900 shares

 

 

 

294

 

 

 

Pfizer Inc.

 

Common stock, 86,700 shares

 

 

 

1,971

 

 

 

Renaissancere Hldgs Ltd.

 

Common stock, 3,500 shares

 

 

 

211

 

 

 

Royal Dutch Shell PLC

 

Common stock, 3,400 shares

 

 

 

286

 

 

 

Sanmina-Sci Corp.

 

Common stock, 30,100 shares

 

 

 

55

 

 

 

Sara Lee Corp.(3)

 

Common stock, 35,300 shares

 

 

 

567

 

 

 

Sprint Nextel Corp.(3)

 

Common stock, 40,000 shares

 

 

 

525

 

 

 

Supervalu Inc.

 

Common stock, 9,400 shares

 

 

 

353

 

 

 

Tech Data Corp.

 

Common stock, 4,900 shares

 

 

 

185

 

 

 

Terex Corp.

 

Common stock, 4,100 shares

 

 

 

269

 

 

 

Time Warner Inc.

 

Common stock, 24,500 shares

 

 

 

404

 

 

 

Travelers Cos Inc.

 

Common stock, 18,600 shares

 

 

 

1,001

 

 

 

Tyco Electronics(3)

 

Common stock, 5,850 shares

 

 

 

217

 

 

 

Tyco Int’l LTD W/I(3)

 

Common stock, 5,850 shares

 

 

 

232

 

 

 

Verizon Communications, Inc.

 

Common stock, 10,300 shares

 

 

 

450

 

 

 

Vodafone Group(3)

 

Common stock, 26,000 shares

 

 

 

970

 

 

 

XL Capital Ltd. Cl A(3)

 

Common stock, 4,800 shares

 

 

 

241

 

 

 

 

 

Total common stock

 

 

 

1,060,282

 

 

 

Participant loans:(4)

 

1,756 participant loans, various maturities, interest rates range from 2.0%–12.0%, balances collateralized by participant account

 

 

 

22,464

 

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

MFO Causeway Cap Mgmt. Intl Value Inst’l

 

4,674,932 shares

 

 

 

78,398

 

 

 

MFO Dodge & Cox Balanced Fund

 

1,089,331 shares

 

 

 

88,236

 

 

 

MFO Fidelity Magellan Fund Inc Open End Fund

 

862,442 shares

 

 

 

80,957

 

 

 

MFO Hbr Fund Cap Appreciation Fund

 

870,106 shares

 

 

 

32,464

 

 

 

MFO Pimco Funds Pac Invt Mgmt Ser

 

2,974,876 shares

 

 

 

31,801

 

 

 

MFO Vanguard Emp Benefit Index Fund

 

1,358,982 shares

 

 

 

184,129

 

 

 

MFO Vanguard Mid-Cap Index Inst’l

 

 

 

 

 

 

 

 

 

Fund

 

3,400,287 shares

 

 

 

70,590

 

 

 

MFO Vanguard Reit Index Inst’l Fund

 

1,832,719 shares

 

 

 

24,742

 

 

 

 

 

Total mutual funds

 

 

 

591,317

 

 

 

Plan interest in master trust accounts:

 

 

 

 

 

 

 

 

 

Advent Unit Master Trust

 

714,572 units

 

 

 

9,456

 

 

 

MFO Alliance Bernstein Small Cap Units

 

4,603,519 units

 

 

 

64,739

 

 

 

Invesco Stable Value Fund

 

20,677,777 units

 

 

 

332,985

 

 

 

 

 

Total plan interest in master trust accounts

 

 

 

407,180

 

 

 

 

 

Total

 

 

 

$

2,103,665

 

 

(1)

Cost information omitted for participant-directed investment.

(2)

This is cash received for securities loaned subject to an offsetting payable of equal amount, which is nonparticipant directed.

(3)

Common stock lent under securities lending agreement.

(4)

Includes nonparticipant-directed investments.

*

Represents a party in interest as defined by ERISA.

 

See accompanying report of independent registered public accounting firm.

 

19



Schedule 2

 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Schedule H, Line 4j – Schedule of Reportable Transactions

 

Year ended December 31, 2007

 

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current value

 

 

 

 

 

Description of asset (includes

 

 

 

 

 

 

 

Expense

 

 

 

of asset on

 

 

 

 

 

interest rate and maturity

 

Purchase

 

Selling

 

 

 

incurred with

 

 

 

transaction

 

 

 

Identity of party involved

 

in case of loan)

 

price

 

price

 

Lease rental

 

transaction

 

Cost of asset

 

date

 

Net gain

 

Series of transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  Occidental Petroleum Corp.

 

Occidental Petroleum Corp. Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Acquisition

 

$

8,677

 

 

 

 

8,677

 

8,677

 

 

 

 

8 Dispositions

 

 

80,158

 

 

 

16,206

 

80,158

 

63,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Invesco

 

Invesco Stable Value Fund:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139 Acquisitions

 

114,325

 

 

 

 

114,325

 

114,325

 

 

 

 

124 Dispositions

 

 

88,610

 

 

 

78,871

 

88,610

 

9,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  Bank of New York

 

BNY Short-Term Investment Fund:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

698 Acquisitions

 

171,003

 

 

 

 

171,003

 

171,003

 

 

 

 

451Dispositions

 

 

174,333

 

 

 

174,333

 

174,333

 

 

 

*  Represents a party in interest, as defined by ERISA.

 

See accompanying report of independent registered public accounting firm.

 

 

 

 

 

20



 

Schedule 3

 

OCCIDENTAL PETROLEUM CORPORATION

SAVINGS PLAN

 

Schedule H, Line 4a – Schedule of Delinquent Participant Loan Repayments

 

Year ended December 31, 2007

 

 

 

 

 

 

 

Total that constitute nonexempt prohibited transactions

 

 

 

Participant

 

 

 

Participant

 

Participant

 

 

 

loan

 

 

 

loan

 

loan

 

Total fully

 

repayments

 

Participant loan

 

repayments

 

repayments

 

corrected

 

transferred late

 

repayments

 

corrected

 

pending

 

under VFCP

 

to the Plan

 

not

 

outside of

 

correction in

 

and PTE

 

during the year

 

corrected

 

VFCP

 

VFCP

 

2002-51

 

$

3,281,225

 

 

3,281,225

 

 

 

 

The Company untimely remitted certain loan repayments to the Plan. Loan repayments were remitted to the Plan on a monthly basis even for amounts withheld from the participant’s wages during the first two weeks of the month. The monthly average of loan repayments untimely transferred is $245,000 for Plan years 2002 through 2007. The Company will reimburse the Plan by July 1, 2008 for lost earnings of approximately $64,000 due to late remittance of loan repayments from January 2002 through June 2008 using the DOL’s on-line calculation and in accordance with the methodology outlined in the DOL’s Voluntary Fiduciary Correction Program (VFCP). Effective July 1, 2008, the Company will remit loan repayments to the Plan as soon as they can be reasonably segregated from the Company’s assets.

 

See accompanying report of independent registered public accounting firm.

 

21



 

Exhibit Index

 

Exhibit
No.

 

 

Exhibit

 

 

 

23.1

 

Consent of Independent Registered Public Accounting Firm

 

22