press release

Texaco Press Release - Texaco Announces 2000 Reserve Replacement

Reserve Life Grows To Highest Level In Three Decades

FOR RELEASE: WEDNESDAY, JANUARY 31, 2001

WHITE PLAINS, NY., Jan. 31 - Texaco announced today that it replaced 172 percent of its 2000 worldwide combined oil and gas production, excluding purchases and sales. The company's net proved reserves increased to 4.9 billion barrels of oil equivalent (BOE), the fifth year in a row reserves have increased. The average life of Texaco's reserves increased to 11.4 years, the longest reserve life in over 24 years.

Worldwide 2000 1999
Net Proved Reserves
million barrels of oil equivalent
4,900 4,831
Reserve Life 11.4 years 10.3 years
Production Replaced
excluding purchases & sales
172% 111%
Production Replaced
including purchases & sales
116% 137%

Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "This year Texaco achieved landmark reserve replacement results. We attribute these strong results to the success of our strategy of focusing capital on high impact projects and balancing our portfolio by the sale of fields that are reaching the end of their life. International reserves comprise 53 percent of our global reserves. Undeveloped reserves comprise 34 percent of our proved reserves. This portfolio provides an excellent platform for future growth."

Texaco's proved oil and gas reserves are comprised of 3.5 billion barrels of liquids and 8.3 trillion cubic feet of natural gas.

Worldwide 2000-1998
3-Year Average
2000-1996
5-Year Average
Production Replaced
excluding purchases & sales
150% 146%
Production Replaced
including purchases & sales
143% 154%
Finding & Development Costs $3.74 $3.92

International Operations

Excluding purchases and sales, we replaced 267 percent of production in 2000. Adding in our purchases and sales, we replaced 217 percent of production in 2000. The sale of non-strategic assets in 2000 reduced international reserves by 108 million BOE.

The international reserve replacement performance reflects Texaco's strategy of focusing its resources on high margin, high impact projects. The replacement of international reserves included an increase of 56 million BOE to the Karachaganak field in Kazakhstan and the booking of 379 million BOE from the Hamaca field in Venezuela. Additions to the Duri field in Indonesia, the Wafra-Ratawi field in the PNZ and the Halfdan field in the North Sea also contributed to the increase.

U.S. Operations

Excluding purchases and sales, we replaced 76 percent of production in 2000. Adding in our purchase and sales, we replaced 13 percent of production in 2000. Additions to the Kern River field led the U.S.-based reserve replacement performance, followed by notable additions to gas fields in the Rocky Mountain Region. The sale of non-strategic assets in 2000 reduced U.S. reserves by 177 million BOE.

Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of reserves and related assets; inaccurate seismic data; decreased demand for motor fuels, natural gas and other products; worldwide industry and economic conditions; and refined product specifications. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 24, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.

TEXACO RESERVE SUMMARY

(Including Equity in Affiliated Companies)

Production Replacement%

Net Proved Reserves* Excluding purchases and sales Including purchases and sales Finding and Development Costs per BOE
2000
United States
Liquids 1,560 33% (71)%
Natural Gas 4,430 144% 146%
Combined 2,298 76% 13% $6.03
International
Liquids 1,958 301% 247%
Natural Gas 3,862 112% 83%
Combined 2,602 267% 217% $2.94
Worldwide Total 4,900 172% 116% $3.62
(BOE)
1999
United States
Liquids 1,782 77% 71%
Natural Gas 4,205 133% 118%
Combined 2,483 99% 89% $4.12
International
Liquids 1,698 61% 73%
Natural Gas 3,903 430% 732%
Combined 2,348 124% 186% $4.56
Worldwide Total 4,831 111% 137% $4.37
(BOE)
1998
United States
Liquids 1,824 161% 136%
Natural Gas 4,105 119% 113%
Combined 2,508 144% 127% $4.41
International
Liquids 1,749 215% 136%
Natural Gas 2,412 76% 178%
Combined 2,151 191% 219% $2.64
Worldwide Total 4,659 166% 171% $3.45
(BOE)

*Estimated net proved developed and undeveloped reserves are in million of barrels of liquids and billions of cubic feet of natural gas. Combined amounts are in millions of barrels of oil equivalent, with natural gas converted to its oil equivalent at 6,000 cubic feet per barrel.

Updated: January 2001