Texaco Press Release - Ecopetrol, PDVSA Gas and Texaco Sign Agreement to Study Gas Pipeline
FOR RELEASE: FRIDAY, AUGUST 24, 2001
COLOMBIA, Aug. 24 - Ecopetrol, the national oil company of Colombia, PDVSA Gas, an affiliate of Venezuela's national oil company and Texaco today announced the signing of a non-binding memorandum of understanding (MOU) to conduct a feasibility study to evaluate the construction of a natural gas pipeline to interconnect Colombia and Venezuela.
The proposed pipeline would be approximately 200 kilometers in length and would connect Texaco's and Ecopetrol's offshore infrastructure in the Guajira region in northeast Colombia to markets in Lake Maracaibo, Venezuela. Texaco and Ecopetrol supply approximately 80 percent of Colombia's natural gas needs. PDVSA Gas is the major supplier of natural gas throughout Venezuela.
The three parties will form a project team to conduct the study over a six-month period to determine the scope of the export project and pipeline construction budget. The study will examine and evaluate the environmental, technical and commercial factors of the export project. If deemed commercial, the parties will determine their participation in a joint development agreement for the pipeline construction and/or a supply agreement for the sale of Colombian gas to Venezuela.
Ecopetrol President Alberto Calderon, said, "We are interested in exploring conditions that would make a gas interconnection between Colombia and Venezuela economically feasible. If we find possibilities, we'll analyze the supply options that satisfy the aspirations of both countries."
PDVSA Gas President Nelso Nava said, "We are looking at this study with a futuristic approach. Our idea is to use the pipeline to import gas during the early years of the project, to offset some circumstantial shortage that we are experiencing in the Western side of the country. But after this period we may very well be in the position of reversing the direction of the pipeline flow and use it as a first leg of a pipeline system able to export gas from Venezuela to other countries both in Central and South America."
"As the demand for clean energy supplies continues to increase throughout the Andean Region, we look forward to creating new solutions which link resources and markets," said Alex H. Archila, President of Texaco Colombia.
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 reserves, 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 following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of reserves and related assets; inaccurate scientific data; mechanical, chemical and technological failures; decreased demand for alternative fuels and other products; above or below-average product and technology demands; worldwide and industry economic conditions; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; and strikes and other industrial disputes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including, but not limited to, Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, 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.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Texaco may use certain terms in this press release, such as estimated barrels and recoverable barrels of oil, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the Supplemental Oil and Gas Information disclosure in our 2000 Annual Report on Form 10-K filed with the SEC on March 26, 2001, File No. 1-27, available from us at:
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You may also obtain this form from the SEC by calling 1-800-SEC-0330.
Updated: August 2001