press release

Texaco Press Release - Texaco Acquires 24 Percent Equity Interest in Italy Power Project

276 Megawatt Facility to Feature Texaco Gasification Technology


WHITE PLAINS, N.Y., Sept. 19 - Texaco announced today that its subsidiary, Texaco Development Corp., has acquired a 24 percent equity interest in a 276 megawatt cogeneration project under construction at the Anonima Petroli Italiana (API) refinery in Ancona, Italy. The power facility, scheduled for a 1999 start-up, will use Integrated Gasification Combined Cycle (IGCC) technology under license from Texaco.

Ownership in the API ENERGIA S.p.A. project includes API (51 percent) and Asea Brown Boveri (ABB) (25 percent). The project will utilize approximately 7,700 barrels per day of visbreaker tar, a heavy oil residue from the API refinery. Electricity will be sold to ENEL S.p.A., the Italian national power company, with up to 65,000 kg/hour of steam to be sold to the API refinery. Total project cost is approximately $750 million.

"Texaco is pleased to become a partner in this environmentally sensitive cogeneration facility that will provide efficient energy products to ENEL and API," said Glenn F. Tilton, Senior Vice President of Texaco Inc. and President - Global Businesses "The addition of the API ENERGIA facility to our power portfolio further strengthens Texaco's position as a developer and operator of world-class projects."

The API ENERGIA power project is the first joint investment in an IGCC facility under a European marketing alliance established by Texaco and ABB earlier this year.

Texaco Global Gas and Power (a unit of Texaco Global Businesses) develops independent power plants worldwide. With its partners, Texaco operates power generation facilities producing more than 2,200 megawatts of electricity, with 1,600 megawatts under development. Texaco also has licensed its gasification power technology to refineries and utilities which will generate more than 2,300 megawatts of power.

Anonima Petroli Italiana S.p.A. is the principal holding and operating company of the API Group, one of the largest privately owned, downstream integrated groups in the Italian petroleum sector.

The ABB Group is a group of companies operating in some 140 countries involved in the design, manufacture and construction of plant and equipment relating to power generation, transmission and industrial and building systems.

Updated: September 1997