press release

Texaco Press Release - Texaco and Shell End Discussions on Formation of European Marketing

FOR IMMEDIATE RELEASE: MONDAY, NOVEMBER 30, 1998.

LONDON, U.K., Nov. 30 - Texaco and Shell Europe Oil Products today announced that discussions aimed at forming an alliance of their European oil products marketing and manufacturing activities have ended. The companies signed a non-binding Memorandum Of Understanding (MOU) in September to explore the possibilities of forming an alliance, subject to successful completion of negotiations. The two companies have mutually agreed to discontinue the discussions.

Commenting on the announcement, Texaco Inc. Senior Vice President and President, Global Businesses, Glenn F. Tilton said, "Since the signing of the MOU, the two companies have worked diligently to develop a business plan for the proposed venture. Over time, however, it became clear that the proposed plan would not maximize shareholder value for both companies. I have every confidence that Texaco can continue to operate as a successful marketer and refiner in Europe. Additionally, it should be stressed that this announcement in no way impacts our continued confidence in our existing alliance in the United States with Shell and Saudi Aramco."

FACT SHEET:
TEXACO EUROPEAN MARKETING & MANUFACTURING

(Note: All Numbers as of end 1997)

EMPLOYEES (including subsidiaries)

TEXACO
4,300

REFINERIES (figures in brackets are: % equity interest and capacity in 1,000 barrels per day)

TEXACO
Pembroke, United Kingdom (100% 190)
Rotterdam, The Netherlands (35%, 140)

MARKETING (BY COUNTRY) Branded outlets

COUNTRY TEXACO
Belgium/Luxembourg 483
Central and Eastern Europe 19 Poland
Denmark (See notes, below)
Greece 373
Rep. Of Ireland 432
Netherlands 557
Norway (See notes, below)
Spain 55
United Kingdom 1,065
TOTAL: 2,984

NOTE: Hydro-Texaco Holdings is a joint venture of Texaco and Norsk Hydro, formed in December 1994, that sells petroleum products in Norway, Denmark and the Baltic states. Altogether, Hydro Texaco operates approximately 990 branded sites.

LUBES PLANTS

TEXACO
3

TERMINALS

TEXACO
11 100% owned
23 JVs, Equity interest or throughput

Updated: November 1998