press release

Texaco Press Release - Texaco, Shell and Saudi Refining, Inc. Announce Approval


WHITE PLAINS, N.Y., May 27 -- Texaco Inc., Shell Oil Company and Saudi Aramco today announced all approvals have been obtained for the consummation of the joint venture combining major elements of their eastern and Gulf Coast U.S. refining and marketing businesses. Shell will have 35 percent ownership and Texaco and Saudi Refining, Inc., a corporate affiliate of Saudi Aramco, will each have 32.5 percent ownership of the company. It is expected that the joint venture will be formed and become operational in June.

The new company, to be headquartered in Houston, will be called Motiva Enterprises LLC and will market under the Texaco and Shell brands.

L. Wilson Berry, formerly President of Texaco Refining and Marketing Inc., will be President and Chief Executive Officer of Motiva Enterprises.

In January 1998, Texaco and Shell announced the formation and operational start-up of a separate joint venture under the name Equilon Enterprises LLC. Equilon combines the major elements of Texaco's and Shell's western and Midwestern U.S. refining and marketing businesses and their nationwide trading, transportation and lubricants businesses. Texaco has a 44 percent ownership in Equilon and Shell owns 56 percent of the company.

In a joint statement, Texaco Chairman and CEO Peter I. Bijur, Shell Oil Company President and CEO Philip J. Carroll and Saudi Aramco President and CEO Abdallah S. Jum'ah said, "We believe the combination of the three companies' assets into these two alliances will provide the fundamental change that is needed to allow us to collectively achieve improved performance and growth. Ultimately, we believe both alliances will generate new and promising opportunities for our customers, employees, vendors and the communities where we operate."

"Motiva, like Equilon, will market gasoline and other products under both the Shell and Texaco brands, which are key recognizable strengths of the new company," said Berry. "These quality brands and our talented, innovative workforce will represent a formidable force in the highly competitive petroleum fuels market."

The exploration, production and chemical businesses of Shell, Texaco and Saudi Aramco are not included in either of the alliances.

Texaco Inc. is based in White Plains, N.Y. Shell Oil Company is a Houston-based affiliate of the Royal Dutch/Shell Group of Companies. Saudi Aramco is the state-owned oil company of the Kingdom of Saudi Arabia. The company's U.S. corporate affiliate Saudi Refining, Inc. is based in Houston.

Updated: May 1998