press release

Texaco Press Release - Texaco Announces Completion of Appraisal Drilling Atagbami Field in Nigeria


WHITE PLAINS, N.Y., August 9 - Texaco today announced the completion of appraisal drilling at its deep water Agbami field, located offshore Nigeria. The successful four-well appraisal program confirmed that the Agbami structure has potential recoverable reserves of one billion barrels of oil equivalent.

Commenting on the announcement, John O'Connor, Senior Vice President of Texaco Inc. and President of Worldwide Exploration and Production said: "Agbami is an important project for Texaco and for Nigeria, and the completion of appraisal drilling is a significant milestone in the development schedule. We have gained additional valuable data that underscores the field's huge potential, which, coupled with solid progress being made in other key areas by the project team, means we remain on track for first oil in mid-2005."

The Agbami structure spans an area of 45,000 acres and extends from Block 216 into Block 217. The drilling program defined the productive limits of the field and established reservoir continuity. The results will help to form the basis of a development plan incorporating conceptual facilities design, reserves, production rates and well count, while experience gained drilling the appraisal wells will optimise well design for development drilling.

The bid process for Agbami's major facility contracts is well underway. The tender process for sub-sea equipment, installation, and a Dry Tree Unit has begun and tenders for a 200,000 barrels per day floating production, storage and off-loading vessel are being evaluated.

A final decision on project sanction is planned for first quarter 2002, subject to finalisation of all commercial arrangements. First oil from the field is planned for mid-2005, with peak production of 200,000 barrels of oil per day in 2007.

In Block 216, Texaco through its wholly-owned affiliate, Star Deep Water Petroleum Limited, holds a participating contractor's interest of 80 percent. Other participants in the block include Petroleo Brasileiro Nigeria Limited, Nigerian National Petroleum Corporation (NNPC) and independent Nigerian oil company, Famfa. In Block 217, Texaco Nigeria Outer Shelf Ltd. holds a participating contractor's interest of 46 percent, with the balance held by Statoil (Nigeria) Limited (operator), and with NNPC as concessionnaire.

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 reserves, 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 scientific data; mechanical, chemical and technological failures; decreased demand for alternative fuels and other products; above or below-average product and technology demands; worldwide and industry economic conditions; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; and strikes and other industrial disputes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including, but not limited to, Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, 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.

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Texaco may use certain terms in this press release, such as estimated barrels and recoverable barrels of oil, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the Supplemental Oil and Gas Information disclosure in our 2000 Annual Report on Form 10-K filed with the SEC on March 26, 2001, File No. 1-27, available from us at:

Texaco Inc.
2000 Westchester Avenue
White Plains NY 10650,
Attention: Secretary

You may also obtain this form from the SEC by calling 1-800-SEC-0330.

Updated: August 2001