press release

Texaco Press Release - Texaco Announces First Oil from Captain B


LONDON, Dec. 27 - Texaco and the Korea Captain Company today announced first oil from the second phase (Area B) of the Captain field development in block 13/22a in the UK North Sea. Production from the field is expected to increase from its current 60,000 barrels of oil per day to a plateau rate of 85,000 barrels of oil equivalent per day during 2001.

The $500 million Captain Expansion Project has been completed within a 25-month schedule, maintaining a strong focus on safety and environmental performance throughout.

Commenting on first oil, John W. McDonald, Texaco's North Sea Managing Director, said: "This marks the successful culmination of an extremely challenging schedule. The joint team of Texaco, its equity partner Korea Captain Company and project contractors has taken a shared approach to safety, problem solving, and pursuit of best practice, resulting in the successful integration of a significant new development into a field already in production, on time and on budget."

The project team has achieved a number of firsts in new technology development to overcome the challenges of developing Area B. A 26-month drilling programme, begun in October 2000, consists of 14 long-reach horizontal wells, employing innovative drilling and completion technology, and the first commercial deployment of gas-handling hydraulic submersible pumps, specially developed to handle the high gas content of the Area B reservoir, located in the field's eastern area. In addition, field design has incorporated some key features to enhance environmental performance, including waste heat recovery and gas export.

Area B is being developed subsea, utilising a single unitised 18-slot manifold connected via a suite of pipelines to a new process/utility platform, bridge linked to the existing Captain platform. The new platform comprises a 4,000 tonne steel jacket, 5,500-tonne topside and 75-metre bridge.

"This project represents significant new investment in the North Sea and has sustained employment at two Scottish fabrication yards throughout its construction phase," said McDonald. "Captain is an excellent example of incremental investment made possible by new technology deployment and sub-sea expertise.

This is a day of celebration for all those involved in the project whose dedication, skill and focus on safety, have brought this phase of the Captain project to a successful conclusion."

The Captain field, which is owned by Texaco North Sea UK Company (85 percent) and the Korea Captain Company Limited (15 percent), is located 90 miles north-east of Aberdeen. Production from Captain Area A came on-stream in March 1997.

This press release contains forward-looking statements about production rates from the Captain field. Actual production rates may change based on changing business conditions. For a further discussion of additional factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to the section entitled "Forward-Looking Statements" in Texaco's 1999 Annual Report or Form 10-K.

Updated: December 2000