A preliminary agreement has been signed between Occidental Petroleum Co and Abu Dhabi National Oil Company with the aim to develop two oil and gas fields in the emirates, announced Occidental on Wednesday.

Over the next four years, it is being expected that Occidental’s total capital investment in both projects would be nearly $500 million. While operations would be commenced by the company in both the fields, it would also hold a 100 percent interest in newly created concessions.

In 2009, the first production from the Jarn Yaphour field, situated onshore near the capital city of Abu Dhabi is being expected. Further it is hoped that initial output would be around 10,000 barrels oil equivalent per day (boepd).

Back in 1992, the Ramhan discovery, positioned in very shallow water near the Abu Dhabi refinery was tested and flowed at a mutual rate of 1,750 barrels of oil and 14 million cubic feet of gas per day from one well.

Occidental informed, “If that field is technically and commercially successful, production could begin as early as 2011 and output is also pegged at 10,000 boepd.”

Shares of the Los Angeles-based Occidental on the New York Stock Exchange fell by 58 cents, or 1 percent, to $53.30 recently.