press release

Chevron Press Release - Negotiations Terminated On Gulf & Elf Refining And Marketing Merger In UK

CHELTENHAM, England, May 30, 1997 -- Negotiations towards the planned merger of Gulf Oil (Great Britain) Ltd. (GOGB) and Elf Oil UK Ltd. have ended without agreement. Chevron Corp. of San Francisco, GOGB's parent company, and Elf Aquitaine of Paris, Elf's parent company, today announced that the negotiations have been terminated after both parties concluded the merger did not provide sufficient economic incentive to proceed.

GOGB's Managing Director David Setchell said: "We regret that it has not been possible to conclude the merger negotiations successfully on mutually satisfactory terms. We hope, however, that we can end this period of uncertainty for employees, customers, suppliers and other business partners as soon as possible. As we evaluate other options, we will seek to provide the best possible opportunities for our employees and optimum continuity in terms of service to our customers."

GOGB has a network of about 470 service stations, some 190 of them company-owned. It owns a refinery at Milford Haven, distribution terminals at Cardiff, West Bromwich and Ellesmere Port and a lubricants blending plant in Silvertown, East London. The head office is at Cheltenham.

Chevron further announced that it plans to review other alternatives promptly to maximize the value of its United Kingdom refining and marketing operations, including the sale of these assets.

The planned merger was initially announced on Nov. 6, 1996.

Updated: May 1997