Chevron Press Release - Chevron And Occidental Petroleum Settle Cities Service Case
SAN FRANCISCO, Nov. 18, 1999 -- Chevron U.S.A. Inc. today announced that it has reached an agreement to pay OXY U.S.A. Inc. $775 million to settle the long-standing lawsuit brought in 1982 by Cities Service Co. (later acquired by OXY) against Gulf Oil Corp. (later acquired by Chevron).
The companies will ask the U.S. Supreme Court to dismiss Chevron's current petition for certiorari requesting review of the case.
Chevron had previously established a loss provision for the original judgment, plus interest to date. The provision exceeded the settlement amount and, as a result, the company will recognize approximately $145 million in additional after-tax income for the fourth quarter.
The case dates back to 1982 when Cities Service Co., a Tulsa oil company, filed suit against Gulf Oil Corp. after Gulf terminated an agreement to merge with Cities.
Cities Service was subsequently acquired by Occidental Petroleum in 1982 and Gulf was acquired by Chevron in 1984. The case, which was tried in Oklahoma, has remained in the names of the original parties.
Updated: November 1999