press release

Texaco Press Release - Texaco Awarded 20 Percent Stake in Exploration Block Offshore Brazil

BS-4 Marks Sixth Concession Agreement For Texaco In 1999


HOUSTON, Dec. 16 - Texaco announced today that it has been awarded a 20 percent interest in the BS-4 exploration block offshore Brazil, marking the sixth such agreement the company has signed in 1999. Petrobras and Shell each hold a 40 percent interest in BS-4. Shell will serve as the operator.

Commenting on the announcement, Dr. Bruce S. Appelbaum, Vice President of Texaco Worldwide Exploration, said, "We are committed to pursuing high impact exploration opportunities and are pleased with the potential of this block. This agreement, coupled with the company's success in Brazil's First License Round and subsequent agreements with Petrobras, further solidifies Texaco's participation into the Brazilian upstream industry."

Block BS-4 covers 2.7 million acres and is located in the Santos Basin, approximately 110 miles southeast of Rio de Janeiro. Water depth in the block ranges from 3,280 to 7,900 feet. Wells in the area, including, BSS-69, the first exploratory well on the block, drilled by Petrobras in 1993, have encountered hydrocarbons. The work program for BS-4 includes acquisition and interpretation of 2D and 3D seismic surveys, a detailed study of BSS-69 as well as additional exploratory wells.

In June 1999, Texaco successfully bid for BM-S-2, BM-C-5, and BM-ES-2 offshore concessions offered by the Agncia Nacional do Petrleo (ANP). A subsequent agreement with Petrobras named Texaco a 42.5 percent interest partner and operator of the offshore BC-4 exploration and the Frade development blocks in the Campos Basin.

Updated: December 1999