Texaco Press Release - Saudi Arabian Texaco Inc. Granted Compensation from the United Nations
FOR IMMEDIATE RELEASE: TUESDAY, JULY 13, 1999.
WHITE PLAINS, N.Y., July 13 - Texaco confirmed today that the Governing Council of the United Nations Compensation Commission (UNCC) approved an award to Saudi Arabian Texaco Inc. (SAT), a subsidiary of Texaco Inc., of $505,587,451 plus unspecified interest for damages sustained as a result of Iraq's invasion and occupation of Kuwait in 1990. Payments to SAT are subject to income tax in Saudi Arabia at an applicable tax rate of 85 percent.
SAT is party to a concession agreement with the Kingdom of Saudi Arabia covering the Partitioned Neutral Zone (PNZ) in Southern Kuwait and Northern Saudi Arabia.
Payments on UNCC claims are made at the direction of the UNCC from an account funded through the retention, by the UNCC, of 30 percent of Iraqi oil sale revenue
Notes to editors:
The resources of the PNZ are shared equally between the Kingdom of Saudi Arabia and the State of Kuwait. Saudi Arabian Texaco Inc., has operated on behalf of the Kingdom in the PNZ since 1984, when Texaco purchased Getty Oil Company and assumed its rights in the zone. The Kuwait Oil Company represents Kuwait's interests. Operations are conducted through a joint operations group, staffed and funded by the two companies.
Jointly operated fields in the PNZ include Wafra, South Fuwaris and South Umm Gudair.
Updated: July 1999