press release

Chevron Press Release - Chevron And Texaco Intend to Form Joint Venture of Marine Fuel and Marine Lubricant Businesses

Business Growth, Customer Service
To Be Top Priorities Of New Company

SAN FRANCISCO, March 30, 1998 -- Chevron and Texaco today announced the signing of a development agreement with the intent to establish a joint venture of their respective global marine and industrial fuels and marine lubricant businesses. Upon completion of definitive agreements, the new company will focus its resources on growing the marine fuel and lubricants business, while providing premium customer service. Texaco will have 69 percent ownership of the new company and Chevron will hold 31 percent.

In making the announcement, Glenn F. Tilton, Texaco Inc. senior vice president and president, Global Businesses, said, "The creation of this joint venture is a win-win proposition for everyone involved. It means better service and more products for our customers, greater opportunities for our employees and enhanced shareholder value. This new company is poised to become a world leader in the marine fuel and lubricants businesses."

David J. OReilly, president of Chevron Products Co., said, "Formation of this new company reflects Chevrons continuing commitment to the marine lubricants and marine fuel businesses in an increasingly competitive environment."

The joint venture will serve customers in approximately 450 ports and over 100 countries worldwide. Over the next several weeks, a business plan for the new company will be developed and due diligence completed. Operational start-up is anticipated third quarter of this year.

Updated: March 1998