press release

FIRST OIL FLOWS FROM Texaco's NORTH SEA CAPTAIN FIELD

FOR RELEASE: THURSDAY, MARCH 6, 1997

WHITE PLAINS, N.Y., March 6 - The Captain Field, operated by Texaco North Sea U.K. Ltd. in the U.K. North Sea, produced its first oil today, March 6. The initial production phase will be followed by continued field development in preparation for peak production from the field, expected to be 63,000 barrels of oil per day, by mid-1997.

Located 90 miles northeast of Aberdeen in block 13/22a of the U.K. Continental Shelf, the Captain field is a major development for Texaco.

According to Texaco Inc. Senior Vice President and President of Texaco Worldwide Exploration and Production C. Robert Black, "The Captain Field is a key component of Texaco's aggressive worldwide exploration and production program. This world-class project demonstrates that value can be achieved by bringing together innovative technologies and teamwork."

The $800 million project used highly-skilled, multi-disciplinary teams with new and advanced technology to fast-track the field's development. To get maximum extraction from the reservoir, Texaco has employed a unique combination of extensive horizontal drilling, electrical submersible pumps, and floating production, storage and off-loading vessel (FPSO) technology.

The field infrastructure comprises a wellhead protector platform connected by a network of pipelines to an FPSO on which the crude oil is processed and stored. Oil from the field is exported by shuttle tanker, either directly to customers or to the Nigg Bay terminal in the Cromarty Firth. Storage in the terminal will allow a wide range of destinations and sizes of delivery for worldwide distribution.

Texaco has developed the project as the 100 percent owner and operator, however, as previously announced, the Korea Captain Company Limited (KCCL), a consortium of the Korea Petroleum Development Corporation (PEDCO) and Hanwha Energy, has signed an agreement in principle to acquire a 15-percent interest.

Map of Area

Updated: March 1997