press release

Texaco Press Release - Texaco Affiliate Completes Financing and Commits to Construction

Black & Veatch to Construct Facility
General Electric Selected to Supply Equipment


WHITE PLAINS, N.Y., July 13 - Texaco today announced the closing of $400 million of financing for the construction of the Tri Energy 700-megawatt power project in the Ratchaburi Province of Thailand. Full notice to commence construction of the natural gas-fired, combined cycle facility has been given to Black & Veatch. The plant will utilize General Electric combustion and steam turbines to generate electricity for customers in Thailand.

Tri Energy, a limited liability company in Thailand, is owned 37.5 percent each by Texaco and Banpu Public Company Limited and 25 percent by Edison Mission Energy.

"Achieving financial closing during this unsettling economic time in Asia evidences the strength of this project and its partners," explained James C. Houck, President of Texaco's Global Gas & Power Project Development Group. "Texaco is pleased to participate in Thailand's economic recovery and strategic move towards privatization of its utility industry. Texaco looks forward to participating in other investment opportunities in this country's power sector."

A consortium of nine international banks provided non-recourse project financing, supported by the Overseas Private Investment Corporation (OPIC) of the United States and Japan's Ministry of International Trade and Industry. The consortium includes Credit Suisse First Boston, Bank of Tokyo/Mitsubishi, Bayerische Landesbank, Dai-Ichi Kangyo Bank, Ltd., Fuji Bank, Sanwa Bank, Sumitomo Bank, Citibank and NationsBank.

Upon commercial operation of the plant in mid-2000, Tri Energy will sell electricity to the Electricity Generating Authority of Thailand (EGAT), pursuant to a 20-year power purchase agreement. This project represents approximately five percent of EGAT's current generating capacity. The fuel for the plant will be clean-burning natural gas, purchased from the Petroleum Authority of Thailand under a long-term sales agreement.

Texaco Global Gas and Power develops independent power plants worldwide and, with its partners and affiliates, operates private power generation facilities producing more than 2,200-megawatts of electricity, with more than 2,400-megawatts under development. In addition, Texaco has licensed its gasification power technology to numerous refineries and utilities, which will generate more than 2,600-megawatts.

Updated: July 1998