Occidental Petroleum : ESG Report

CLIMATE REPORT 2022

BUILDING TO

NET ZERO

At Oxy, we are leveraging our expertise in carbon management and storage in our plan to achieve Net Zero and accelerate progress on global climate goals of the Paris Agreement.

December 2022

REPORT HIGHLIGHTS

BUILDING A NET-ZERO ECONOMY

• Completed Front-End Engineering and Design (FEED) and began site construction activities for the first commercial-scale Direct Air Capture (DAC) plant in the Permian Basin

• Started Pre-FEED activities for our second DAC plant

• Executed agreements for more than 265,000 net acres of pore space access with a capacity to sequester up to 6 billion metric tons of CO2

• Filed permit applications for multiple Class VI sequestration wells

• Signed agreements to provide carbon dioxide removal credits from DAC and for future opportunities to supply net-zero oil

KEY ACHIEVEMENTS IN OPERATIONS

• Achieved Zero Routine Flaring during 2022 across U.S. oil and gas operations, 8 years ahead of the World Bank's 2030 target

• Received agency approval of closed- loop gas capture to mitigate non-routine flaring in the Permian Basin

• Retrofitted or eliminated over 95% of high-bleed pneumatic controllers in U.S. onshore operations since 2020

• Original signatory to the "Aiming for Zero Methane Emissions" pledge

NET ZERO

As defined by the United Nations' (U.N.) Intergovernmental Panel on Climate Change (IPCC), the term "net zero" balances anthropogenic greenhouse gas (GHG) emissions to the atmosphere with GHGs taken out of the atmosphere. At Oxy, net zero means that we facilitate the reduction, capture, removal and storage of at least the same quantity of GHGs that are emitted directly by our operations (Scope 1), generated by others to create the power we purchase (Scope 2), and generated by customers and consumers using the products we sell (Scope 3). We are taking the steps today to implement the net-zero future called for by the IPCC and world leaders to meet the goals of the Paris Agreement.

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WE ARE OXY

Oxy is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading- edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world.

Throughout this report, "Oxy," "we" and "our" refers to Occidental Petroleum Corporation and/or one or more entities in which it owns a controlling interest.

ABOUT THIS REPORT

The report begins with a letter from Vicki Hollub, our President and CEO, highlighting our climate-related leadership and the actions we are taking to advance our net-zero goals and ambitions. The report is organized under the framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD)(1), which includes Governance, Strategy, Risk Management, and Metrics and Targets. The report describes the strategic oversight by our Board of Directors and our climate-related policy positions, advocacy and engagement. We presented our net-zerostrategyin detail in our 2021 Pathway to Net Zero, so this report provides key developments, milestones and ongoing business development focused on short-term actions. The report then summarizes our integrated climate-related risk management, including our internal carbon pricing and scenario analysis. Next, the report addresses our actions on our climate- related metrics and targets and reviews our updated GHG emissions data. The Appendices include a table of emissions data from 2019 through 2021, our Independent Assurance Statement, our current GHG goals, a summary of alignment with the original TCFD recommendations and the TCFD's 2021 update, a timeline of our 50+ year legacy of carbon management, and a glossary.

This report reflects updated estimates of emissions from 2019, 2020 and 2021, and the results of the scenario analysis are based on specific assumptions and estimates. Given the inherent uncertainty in predicting and modeling future conditions, caution should be exercised when interpreting the information provided. The results are not indicative of, and this report does not represent, a preferred or expected outcome of the future.

1. The TCFD - established by the Financial Stability Board in response to a request from the G20 Finance Ministers and Central Bank Governors - developed a voluntary disclosure framework for climate-related financial disclosures.

CLIMATE REPORT 2022

CONTENTS

5

CEO Letter

5

Message from Vicki Hollub

6

Governance

7

Board of Directors Strategic Oversight

9

Policy Positions,

Advocacy and

Engagement

10

Oxy's Positions on Climate-Related Policies

14

Oxy's Climate Advocacy and Engagement

22

Strategy

23

Opportunities in a Net-Zero Economy

33

Integrated Risk

Management

34

Integrating Risk Management

34

Short-, Medium- and Long-Term Climate- Related Risks

36

Scenario Analysis



39

Metrics & Targets

40 Net-Zero Goals

40

Interim Targets for GHG Emissions Reductions and Low Carbon Ventures

43

Enhanced Emissions Estimates and Measurements

44

Review of 2019-21 GHG Emissions Metrics

46

Appendices

47

GHG Emissions Summary 2019-2021

48

Independent Assurance Statement

51

Short-Term GHG Goals

52

Medium- and Long-Term GHG Goals

53

TCFD Alignment

54

Alignment with TCFD Changes to Guidance

56

50+ Year Carbon Management Legacy

57

Glossary

CAUTIONARY STATEMENT REGARDING

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on management's current expectations relating to Oxy's operations, strategies, outlook and business prospects. Words, and variations of words, such as "estimate," "project," "predict," "will," "would," "should," "could," "may," "anticipate," "progress," "commitment," "strategy," "initiative," "plan," "seek," "intend," "believe," "expect," "aim," "ambition," "goal," "target," "objective," and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. In addition, historical, current and forward-lookingsustainability-related statements

may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future. Factors that could cause results to differ include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; our indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations and development initiatives; our ability to successfully monetize select assets and repay or refinance debt and the impact of changes in our credit ratings; the scope and duration of the COVID-19 pandemic and ongoing actions taken by governmental authorities and other third parties in response to the pandemic; assumptions about energy markets; global and local commodity and commodity futures pricing fluctuations and volatility; development, financing and deployment of technology necessary to execute our strategy; having sufficient land and appropriate joint venture partners to execute on our strategies; supply and demand considerations for, and the prices of, our products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of our proved and unproved

oil and gas properties or equity investments, or write-downs of productive assets, causing changes to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including our ability to timely obtain or maintain permits or other governmental approvals; our ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, natural gas and natural gas liquids reserves; lower-than-expected production from development projects or acquisitions; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver our oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets; governmental actions, war (including the Russia-Ukraine war), and political conditions and events; legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, deep-water and onshore drilling and permitting regulations, and environmental regulations (including regulations related to climate change); environmental risks and liability under federal, regional, state, provincial, tribal, local and international

environmental laws and regulations (including remedial actions); our ability to recognize intended benefits from our business strategies and initiatives, such as our low carbon ventures businesses or announced GHG emissions reduction targets or net-zero goals; climate change and other macro events that cannot be predicted over the next 30 years; potential liability resulting from pending or future litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; failure of risk management; our ability to retain and hire key personnel; supply, transportation and labor constraints; reorganization or restructuring of our operations; changes in state, federal or international tax rates; actions by third parties that are beyond our control; and the factors set forth in Part I, Item 1A "Risk Factors" of Oxy's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in Oxy's other filings with the U.S. Securities and Exchange Commission (SEC). Unless legally required, Oxy does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Targets and expected timing to achieve targets and strategies are subject to change without notice due to a number of factors. Inclusion of information in this report does not necessarily indicate such information is material to an investor in our securities.

ABOUT THE INTERNATIONAL ENERGY AGENCY SUSTAINABLE DEVELOPMENT SCENARIO AND NET ZERO BY 2050 SCENARIO

The Sustainable Development Scenario (SDS) and Net Zero by 2050 Scenario (NZE) modeled and assessed in this report are derived from assumptions contained in the International Energy Agency's 2021 World Energy Outlook. The SDS and NZE are not forecasts or predictions of the future. There can be no assurance that the scenario modeling and assessment presented in this report are reliable indicators of the actual impact of climate change on Oxy's asset portfolio or business. Statistics and metrics included in this report are estimates and may be based on assumptions or developing standards.

ABOUT OUR GHG EMISSIONS ESTIMATES

The estimated Oxy GHG emissions described in this report are derived from a combination of measured and estimated data using reasonably available information as of December 31, 2021. Oxy applies operational control as our organizational boundary and primary approach to reporting. We include within this boundary the operated oil and gas assets of Oxy and Anadarko, the operated assets of Occidental Chemical Corporation (OxyChem), and certain assets not part of oil and gas or chemical operations such as company-operated aircraft and property management; we exclude operated assets that are held for sale or sold in a given year. We use industry standards and practices for estimating GHG emissions, including guidance from the GHG Protocol, IPCC, SASB, U.S. EPA, API and IPIECA. Oxy has endeavored to estimate direct GHG emissions from our operations (Scope 1), indirect emissions associated with the generation by others of electricity, steam or heat that we purchase for use in our operations (Scope 2), and the three categories of emissions generated by others in our downstream oil and gas value chain (Scope 3) that we believe are most relevant

• downstream transportation and distribution of our oil and gas products (Category 9), processing and refining of our oil and gas products (Category 10), and use of our sold products by consumers (Category 11). We are engaged in an ongoing integration of Oxy and Anadarko processes and systems, including those with respect to equipment inventories and estimation or measurement of GHG emissions. During this effort, we have applied in this report what we

believe are conservative assumptions about the number and type of emissions- generating equipment, which we expect to continue to refine as we develop more comprehensive emissions inventories. The uncertainty associated with Oxy's emissions estimates depends on variation in the processes and operations, the availability of sufficient representative data, the quality of available data, and the methodologies used for measurement and estimation. Accordingly, we expect to continue to review, and may update as warranted, our emissions estimates for the years presented in the event of significant changes as additional data become available, reporting and estimation regulations or protocols are revised, or estimates are supplemented by measurements and to reflect significant changes to Oxy's assets, operations or organizational boundaries.

We also provide certain production and emissions data on an equity basis, where data are available, excluding assets that are held for sale or sold in a given year. Equity-based production data reflect oil and gas production presented in our annual Form 10-K and the production schedule of our earnings release for the fourth quarter of the applicable year, and equity-based Scope 3 emissions estimates reflect that total equity production. Equity-based Scope 1 and 2 emissions data for Oxy's international assets reflect Oxy's proportionate interest in international oil and gas joint ventures, whether operated by Oxy or by third parties. Equity-based Scope 1 and 2 emissions data for Oxy's U.S. assets reflect our average net royalty interest in Oxy's operated U.S. assets, while excluding emissions from Oxy's interests in U.S. plants and fields operated by third parties, for which we do not currently have emissions data. We are evaluating processes to estimate GHG emissions from joint ventures operated by third parties and expect to be in a position to provide more information on those interests in future reports.

Oxy's Scope 3 estimates address the three most relevant categories in our downstream oil and gas value chain - the transportation, refining, and use of our sold oil and gas products (Category 9, 10, and 11, respectively), applying the 2009 and 2021 API Compendium and U.S.-based emission factors and the EPA/IPCC AR4 GWP to our production on an operated and equity basis. The estimates for transportation and refining reflect our production entirely as oil on a BOE basis with further transportation of the refined products, rather than reflecting transportation and processing of natural gas or natural gas liquids (NGLs) that would be expected to generate lower emissions. The estimates for use of our sold products assume 100% combustion of oil, NGLs, natural gas and downstream products and ignore non-emitting uses. While we believe the downstream oil and gas value chain comprises the Scope 3 categories most relevant to Oxy, we are continuing to assess methodologies to estimate emissions associated with these and other Scope 3 categories with respect to our oil and gas, chemicals and other operations and products. Reporting of estimated emissions generated by others helps to evaluate the lifecycle emissions associated with our operations and products and to aid in expressing the magnitude of our net-zero goals and ambitions and does not indicate an acceptance by Oxy of responsibility for the emissions of others.

There are multiple proposed or recently adopted changes to various GHG reporting regulations and protocols, including from the U.S. EPA, the SEC, the GHG Protocol and certain countries and states, as well as for additional controls, fees or taxes on emissions. Given the potential significance of these changes for estimation and reporting, Oxy may update or modify our reported emissions and our current suite of GHG goals and targets to reflect new regulations and protocols, although we expect to retain our overarching net- zero goals and to continue to implement emissions reduction plans that we believe will complement our investments in Direct Air Capture (DAC), Carbon Capture, Utilization and Storage (CCUS) and other low-carbon technologies and infrastructure.

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"WE BELIEVE LARGE-SCALE DIRECT AIR CAPTURE WILL BE AN AFFORDABLE AND PRACTICAL INDUSTRIAL DECARBONIZATION	5
SOLUTION AND WILL PLAY AN IMPORTANT ROLE IN HELPING ORGANIZATIONS AND NATIONS ACHIEVE NET ZERO."

CEO LETTER

At Oxy, we're bringing together people, resources, innovative technology and our 50+ year legacy of carbon management to accelerate our pathway to net zero, as well as helping others do the same. As the first U.S. oil and natural gas producer to establish net- zero emissions goals for our operations and products (Scopes 1, 2 and 3) aligned with the goals of the Paris Agreement, we've taken a leadership role in developing solutions to accelerate a lower- carbon economy. Since establishing our climate goals in 2020, other companies have committed to working toward a sustainable future, making a net-zero ambition the new normal.

Over the past year, we have continued to accelerate our net-zero strategy to:

• Reduce GHG emissions from our operations;

• Revolutionize technologies to abate GHG emissions;

• Remove CO2 directly from the atmosphere through Direct Air Capture (DAC) and enable point-source capture from industrial emitters; and

• Reuse and recycle CO2 to generate low-carbon transportation fuels, electricity and other products.

In 2022, we focused on advancing DAC solutions and CO2 sequestration hubs that we believe are essential to meet the goals of the Paris Agreement while supporting the diverse energy supply that society needs. Leveraging our 50+ years of experience managing CO2 for enhanced oil recovery in the Permian Basin and OxyChem's expertise developing and handling key enabling products uniquely positions us to develop sustainable technologies that can extract CO2 from the atmosphere or capture CO2 from point sources, and either sequester or put that CO2 to use. While some sequestration will be necessary, the use of CO2 is also important to support the development of critical technologies.

In the second quarter of 2022, Oxy completed the Front-End Engineering and Design (FEED) for the first commercial-scale DAC plant, which will be located in the Permian Basin, with construction activities initiated in the third quarter and anticipated commencement of operations by late 2024. Upon completion, this DAC plant will be the world's largest of its kind and is initially expected to capture up to 500,000 metric tons of CO2 per year. Through our subsidiary 1PointFive, we have advanced product sales for the plant, including carbon removal credit purchases from Airbus, Shopify and ThermoFisher, and we reached an offtake agreement

with SK Trading International for an opportunity to purchase net- zero oil. We hold an exclusive license for U.S. deployment of DAC technology from Carbon Engineering Ltd. (CE), and a worldwide agreement with CE as the execution partner for all

of its DAC deployments.

We are also designing sequestration hubs to safely and securely store CO2 from DAC plants and point-source capture at industrial facilities. We have secured interests in more than 265,000 acres, or more than 400 square miles, of pore space in southeast Texas and Louisiana that could support up to five hubs with a capacity to sequester up to 6 billion metric tons of CO2. A key example is our recent agreement with King Ranch, the largest privately held ranch in the U.S., to lease approximately 106,000 acres that could support up to 30 DAC plants and pore space estimated to accommodate up to 3 billion metric tons of CO2. Upon completion, this will be the largest DAC deployment project in the world. We believe large-scale DAC will be an affordable and practical industrial decarbonization solution and will play an important role in helping organizations and nations achieve net zero and provide the scale necessary to make a difference in addressing climate change globally. We have started the pre-FEED for our second DAC plant, which we plan to develop at King Ranch to capture up to 1 million metric tons of CO2 per year.

The U.S. has taken a leadership role in moving towards net zero, providing key policy support for deploying state-of-the- art technologies needed to address climate change through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). In particular, the IRA contains several enhancements to the 45Q tax credit that could accelerate the development of DAC and other carbon capture projects. We expect these enhancements would also allow for an expanding voluntary market of carbon dioxide removal CDR credits for the thousands of leading businesses that have established net-zero goals. Assuming this enhanced U.S. policy support continues, we could increase the number of DAC plants in our current development scenario from 70 online by 2035 to approximately 100 DAC plants by 2035. If other countries similarly expand their net-zero policy support, we currently envision a scenario in which we could deploy up to 135 DAC plants by 2035.

We're also continuing to partner across industry sectors to help others achieve their net-zero goals. In the transportation sector, the demand for liquid fuels with a low carbon intensity is expected to grow significantly. Our investment partner, CE, is pioneering Air to Fuels™ technology to use captured CO2 to create low-carbon

transportation fuels. In the power generation sector, Oxy was an early investor in NET Power, whose technology generates reliable, zero-emissions electricity from natural gas by capturing and utilizing CO2. NET Power is planning its first utility-scale plant near our Permian operations to supply us with emissions-free electricity in coming years. CO2 generated by the plant could also be captured and sequestered securely underground using our existing infrastructure. We believe that NET Power can accelerate Oxy's efforts to reduce emissions in our existing operations and ultimately supply emissions- free power to future DAC sites and sequestration hubs.

In parallel to deploying our suite of net-zero technologies, we're committed to reducing emissions in our operations and maximizing the beneficial use of our natural gas production. Flaring reduction is a prime example of these efforts. Our U.S. operations have ceased routine flaring, and our international operations are also on track to eliminate routine flaring well ahead of the World Bank's 2030 target.

We are also taking steps to reduce non-routine flaring through innovations such as closed-loop gas capture to minimize flaring during plant and pipeline outages or other temporary operational disruptions. Oxy has received agency approvals for this practice in multiple wells in the Delaware Basin and is submitting additional applications to apply this solution in Texas and New Mexico.

We are an active participant in leading emissions reduction programs including the Oil and Gas Climate Initiative, the Aiming for Zero Methane Emissions Pledge, the Methane Guiding Principles, Oil & Gas Methane Partnership 2.0, The Environmental Partnership, and the World Bank's Pledge for Zero Routine Flaring by 2030.

I'd like to thank Oxy's global workforce and our partners for their dedication to innovating, designing, building, and deploying at scale the game-changing technologies needed to achieve the goals of the Paris Agreement like DAC, point-source capture, sequestration hubs, NET Power and flaring reduction, while continuing to supply reliable energy to support the global economic development and prosperity that are essential to a successful net-zero transition in a way that leverages our core competencies and provides value to our shareholders.

Vicki Hollub

President and Chief Executive Officer