press release

Chevron Press Release - Chevron To Record $325 Million Second Quarter Gain From Sale Of Caltex Share

SAN FRANCISCO, April 2, 1996 -- Chevron Corporation today reported that its Caltex Petroleum Corporation affiliate has completed the $2 billion sale of its 50 percent interest in Nippon Petroleum Refining Company, a joint refining operation in Japan with Nippon Oil Company. Chevron received a dividend of $550 million from Caltex and will recognize a gain related to the sale of about $325 million in second quarter net income.

Chevron Chairman and CEO Ken Derr said, "I am very pleased that Caltex has completed this important transaction. The half-billion dollar cash dividend we received yesterday will help Chevron to fund the many additional growth opportunities we have around the world. Our aggressive 1996 capital program of $5.3 billion is focused on expanding our international exploration and production activities, chemicals operations and projects intended to maintain our U.S. oil and gas production levels. Moreover, the sale will allow Caltex to concentrate its resources on higher-growth areas in the Pacific Rim."

Caltex, jointly owned by Chevron and Texaco, Inc., is a refiner and marketer of petroleum products in 60 countries in the Eastern Hemisphere. It will remain involved in Japan through its 50 percent ownership of KOA Oil Company.

Updated: April 1996