press release

KPMG AND URS COMPLETE FIRST PHASE OF INDEPENDENT REVIEW OF Texaco's GREENHOUSE GAS EMISSIONS

The following Press Release was issued by KPMG.

FOR RELEASE: WEDNESDAY, MAY 9, 2001

LONDON, May 9 - KPMG and URS Corporation, commissioned by Texaco to independently verify Texaco's Greenhouse Gas Emission (GHG) inventories and protocol, today announced completion of phase one of this two-phase review.

Preliminary findings of phase one, which included a systematic review and critique of the company's emissions inventory protocol, indicate that Texaco's protocol is extensive in its detail and coverage - including all gases referred to in the Kyoto Protocol as well as other gases (NOx, SOx, CO and VOCs) which are also believed to have global warming effects.

Inventorying such gases in a manner which is credible, defensible and transparent is the first step toward effective management of GHG emissions reductions. Since 1997 Texaco has been annually reporting GHG data from virtually all significant operations in which the company has an interest against its own internally developed GHG protocol.

According to Albert Spiers, URS Vice President and Principal in Charge, "The Texaco protocol is generally consistent with industry accepted greenhouse gas estimation methodologies and complete with respect to the emission sources included. Texaco has set a challenging approach to its inventory boundaries to include not only facilities where it has management control, but also its share of emissions from joint-owned facilities."

Phase two of the review will include examining the supporting data corresponding to the emissions estimates for the period 1997-1999 to give confidence that GHG data are being consistently and accurately reported. KPMG will lead the verification audits in phase two which will be conducted globally across Texaco's business units and will be completed by August 2001.

David Coles, Partner of KPMG's Sustainability Advisory Services practice in London commented, "We are excited to be undertaking this project on behalf of a forward-thinking company that is already incorporating GHG data into its business plans and strategy. The work will add value through helping Texaco and others to understand the reliability of its GHG data and is a prelude to participation in future emissions trading."

Further information about Texaco's action plan responding to the challenge of climate change can be found at our Global Climate Change site.

Updated: May 2001