press release

Texaco Press Release - Texaco Signs Production Sharing Contract for Deepwater Block 22 Offshore Angola

FOR RELEASE: FRIDAY, DECEMBER 18, 1998.

HOUSTON, Dec. 18 -- Texaco and Angola's state owned oil company, Sonangol P& P, announced today that they have entered into a production sharing contract for Angolan offshore Block 22. Texaco was awarded operatorship of Block 22, the company's first deepwater operatorship offshore Angola, in June 1997. Block 22 covers 1.2 million acres and is located in the Kwanza Basin, approximately 140 miles south of Luanda. Water depth in the block ranges from 600 to 2,200 meters.

Commenting on the announcement, Dr. Bruce S. Appelbaum, Vice President of Texaco Worldwide Exploration said, "This agreement formalizes our partnership with Sonangol P&P in Block 22 and allows us to move forward with our plans to explore this opportunity. We are pleased with the progress and expansion of Texaco's exploration activity in this important oil producing area."

Texaco currently is conducting 3-D seismic acquisition and other studies in preparation for exploration drilling activities on Block 22.

Texaco holds a 40 percent working interest in Block 22. Other interest holders are Sonangol P&P (20 percent), Esso (25 percent) and BHP Petroleum - Angola 22 Inc. (15 percent).

Texaco also operates Block 1 and Block 2/85 in the Congo Basin, Block 9 in the offshore Kwanza Basin and has interests in the onshore FST Block, Block 16 (Congo Basin) and Block 20 (Kwanza Basin).

Updated: December 1998