press release

Texaco Press Release - Texaco Announces Joint Project Financing for fhe Hamaca Oil Production

FOR RELEASE: FRIDAY, JUNE 22, 2001.

WHITE PLAINS, N.Y., June 22 - Texaco and its Hamaca Project partners announced today that the group has secured approximately $1.1 billion in project financing for the Hamaca oil production and upgrading project in Venezuela, where the company holds a 30 percent interest.

The Project has secured an investment grade rating by both Moody's and Fitch. The financing represents a significant project milestone by securing both export credit agency and commercial bank funding.

The United States Export-Import Bank has approved approximately $628 million under their comprehensive guarantee, and the commercial bank group has participated with capacity for an additional $470 million. The lead arrangers are the Royal Bank of Scotland, BNP PARIBAS, Bank of Tokyo-Mitsubishi, Barclays Bank, Bayerische Landesbank, Export Development Corporation, ING Barings and WestLB.

Commenting on the announcement, John J. O'Connor, Senior Vice President of Texaco Inc. and President of Worldwide Exploration and Production, said, "The Hamaca Project is a key element of Texaco's portfolio of high impact upstream projects. This successful financing effort marks the achievement of a significant milestone in our progress toward bringing this important project onstream."

James F. Link, Vice President of Finance and Risk Management for Texaco Inc., added, "The Hamaca project financing is a significant transactional initiative on the part of the Hamaca partners. Texaco's participation in the Hamaca financing reflects our company's commitment to seeking creative, structured finance alternatives for strategic growth opportunities."

The Hamaca Project is located in Venezuela's Orinoco Belt, which contains the largest known hydrocarbon deposit in the world. The Project area encompasses some 657 square kilometers and is estimated to contain over 30 billion barrels of oil of which 2.1 billion are recoverable during the Project's 34-year production life.

Detailed engineering design and initial construction activities for the Hamaca Project began in August 2000 when Texaco and its partners, subsidiaries of Petrleos de Venezuela S. A. PDVSA (30 percent) and Phillips Petroleum Company (40 percent), authorized contract awards valued at more than $1 billion associated with oil upgrading facilities at Jose, Venezuela. The Hamaca Project partners are committed to maximizing the use of Venezuelan goods and services. The Project is operated for the partners by Petrolera Ameriven whose offices are located in Barcelona, Venezuela.

Cautionary Note to U.S. Investors

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 the participants' expected performance and financial results in future periods are based upon their 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 forward-looking statements are subject to risk factors associated with oil, gas, power, chemicals, coal and renewables businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected that by a variety of variables which could cause actual results or trends to differ materially, including, but not limited to: drilling and production results, reserve estimates, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates, and worldwide and industry economic conditions. In addition, you are encouraged to review the participants' latest reports filed with the SEC, including 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 United States Securities and Exchange Commission 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 uses 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.
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Attention: Secretary

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

Updated: June 2001