Occidental Petroleum Corp. said Monday that it has agreed to develop production and refining projects jointly with Abu Dhabi's International Petroleum Investment Co.

The companies will evaluate projects in the Middle East, the Los Angeles-based Occidental said in a statement. The agreement comes as prices for crude oil have hit records, exceeding $100 per barrel.

This marks the oil company's second agreement with the Abu Dhabi government. The first was the Dolphin project, which provided Occidental with 14,000 barrels of oil and 133 million cubic feet of gas a day in the fourth quarter. Abu Dhabi is the capital and second most populous city in the United Arab Emirates.

Occidental said the partnership "will provide significant new opportunities to increase Oxy's presence in the Middle East/North Africa region," Occidental's Chief Executive, Ray Irani, said in the statement.

Shares in Occidental were up 74 cents to $75.03 in early trading Monday.

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