ChevronTexaco to Sell Stake in Dubai Retail Fuels Marketing Business to Emirates National Oil Company
SAN RAMON, Calif., April 11, 2005 -- ChevronTexaco today announced that Caltex Trading and Transport Corporation, a subsidiary of ChevronTexaco Corporation, has reached an agreement with Emirates National Oil Company Limited (ENOC) L.L.C. (ENOC), its Dubai government-owned partner, to sell its interest in Emirates Petroleum Products Company L.L.C. (EPPCO LLC), a retail fuels marketing business in Dubai. As part of this agreement, EPPCO LLC will continue to sell Caltex lubricants through its retail network.
This agreement is part of ChevronTexaco's downstream strategy to improve returns by focusing on areas where it has a competitive supply position and strong brand recognition for its three world-class brands – Chevron, Texaco and Caltex. As part of this strategy, Caltex is selling its interest in fuel and convenience retailing in Dubai and the Northern Emirates. Caltex will continue to grow its aviation, lubricants and storage businesses in this region through two existing joint ventures with ENOC – EPPCO Projects Co. L.L.C. and EPPCO International Limited.
"This agreement is part of ChevronTexaco's ongoing commitment to concentrate our resources and capital to improve our competitive position in strategic markets. We are proud of what we have done together with ENOC to build a strong retail business run by a national workforce. We believe ENOC can build on this foundation to grow further, and ChevronTexaco can redeploy its resources elsewhere," said Shariq Yosufzai, president of ChevronTexaco Global Marketing.
"We are pleased to continue our relationship with ENOC and are committed to strengthening our partnership in aviation, lubricants and storage," said Mike Wirth, president of ChevronTexaco Global Supply and Trading.
ChevronTexaco Corp. is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. ChevronTexaco Global Marketing and ChevronTexaco Global Supply and Trading are divisions of ChevronTexaco Global Downstream LLC, a wholly-owned subsidiary of ChevronTexaco Corp. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at www.chevrontexaco.com.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Some of the items discussed in this press release are forward-looking statements about the sale of the company's interest in its fuels marketing business in Dubai and the Northern Emirates and its global marketing strategic direction and goals. The statements are based upon management's current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: April 2005