press release

Texaco Press Release - CACT Makes New Field Discovery in South China Sea


BEIJING, PEOPLES REPUBLIC OF CHINA & HOUSTON, June 12 - Texaco and CACT partners announce a new oil field discovery in the Pearl River Mouth Basin of the South China Sea. The CACT Operators Group includes China National Offshore Oil Corporation (CNOOC), Agip China B.V., Chevron Overseas Petroleum Ltd., and Texaco China B.V.

The discovery well, HZ19-2-1, completed in May 2001, is located in CACT's offshore Block 16/19. The well was drilled to a depth of 3,875 meters (12,713 feet) in 100 meters (328 feet) of water and encountered multiple oil zones. One zone was tested and yielded 46 degree API oil at a rate of 4,700 barrels per day.

"This discovery complements the discovery made last year in HZ19-3-1 well." said Samuel G. Snyder, President and Managing Director of Texaco China B.V., "Both of these wells encountered multiple pay zones and tested at high flow rates with good quality oil. The potential synergies of a joint development will make this field a profitable addition to CACT's production."

The commercial development of the two discoveries is being further evaluated with plans to drill an appraisal well as early as this month. CACT currently produces approximately 100,000 barrels of oil a day, making it one of Chinas major offshore petroleum contributors.

Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The forward-looking statements are subject to risk factors associated with oil, gas, power, chemicals, coal and renewables businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected that by a variety of variables which could cause actual results or trends to differ materially, including, but not limited to: drilling and production results, reserve estimates, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates, and worldwide and industry economic condition. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.

Updated: June 2001