Texaco Press Release - Texaco and Tyumen Oil, in a First for a Russian Company, Sign an Agreement
FOR RELEASE: TUESDAY, MAY 30, 2000.
WHITE PLAINS, N.Y. and MOSCOW, May 30, 2000 - Texaco (NYSE: TX) and Tyumen Oil Company (TNK) today signed an agreement for Texaco to provide commodity risk management advice and related support to Tyumen Oil Company, among the first Russian oil companies to systematically manage commodity risk.
"Texaco is pleased to provide Tyumen Oil with commodity risk management services," said Robert C. Oelkers, Texaco Vice President and President of Texaco International Trader Inc. "This agreement establishes our commodity trading relationship with Tyumen Oil, as well as increases the scope of commodity risk management services Texaco offers to other companies."
Simon Kukes, President and CEO of Tyumen Oil Company, said after signing the agreement at Texaco's White Plains, N.Y., offices, "This collaboration is an important outgrowth of our relationship with Texaco in marketing, trading and retailing. Through such relationships, we are able to add value to our shareholders."
Since January of this year, Tyumen Oil and Texaco have operated a joint venture to market Texaco-branded imported lubricants as well as TNK and Texaco-branded lubricants produced and blended at Tyumen Oil's refinery in Ryazan, 120 miles southeast of Moscow. Later this year, Italian-made equipment for manufacturing and filling packaged lubricants will begin operation at Ryazan. This new facility will be capable of increasing production of high-quality packaged products. Many of the new lubricants will be sold through Tyumen Oil's network of service stations in Russia and neighboring countries.
The expansion of the relationship with Texaco is part of Tyumen Oil's strategy to form partnerships with Western companies for marketing, investment, exploration and production.
Established in 1995, Tyumen Oil is one of Russia's top five oil companies. It has six billion barrels of proven oil reserves and produces 460,000 barrels per day. TNK also has a network of 620 retail gasoline stations. It belongs to two private owners, Alfa Group (Russia) and Access/Renova (United States/Russia).
Operating in over 150 countries worldwide, Texaco explores for and produces crude oil, natural gas and natural gas liquids; manufactures and markets high quality fuels and lubricants; and operates trading, transportation and distribution facilities; and produces alternate forms of energy. Texaco is a world leader in gasification technology, an environmentally advanced technology for the conversion of coal, petroleum coke and other low-value hydrocarbons into a clean synthesis gas, which is used for the production of electric power as well as chemical products and industrial gases, including hydrogen.
Updated: May 2000