press release

Texaco Press Release - Texaco, Syntroleum and Brown & Root Sign Agreement

FOR IMMEDIATE RELEASE: WEDNESDAY, DECEMBER 10, 1997.

WHITE PLAINS, N.Y., Dec. 10 - Texaco, Brown & Root and Syntroleum Corporation announced today the signing of an agreement to develop a 2,500 barrel per day gas to liquids (GTL) plant using the Syntroleum Process®.

The proposed plant will be a modular design to be located outside the United States at a site to be announced during the first quarter of 1998. The plant's design will incorporate the new HMX (hybrid multiphase technology) Fischer-Tropsch reactor that has been developed under a joint development agreement between Texaco and Syntroleum, with technical support from Brown & Root and Bateman Engineering. The 2,500 barrel per day plant will be capable of converting natural gas into light and heavy syncrude, which can be further processed into petroleum products. Purchase orders are expected to be issued in the near term for items that could impact the plant's scheduled start-up during the third quarter of 1999. Brown & Root will act as the engineering procurement and construction contractor. Texaco will provide operating, process and technical expertise.

"We are excited to get our first project underway and expect to be incorporating Syntroleum's GTL technology into various locations worldwide as an additional means of adding value from Texaco's global gas reserves," stated Graham Batcheler, President for International Marketing and Business Development, Texaco Global Gas & Power.

"We expect that this will be the world's first economical GTL plant," stated Mark Agee, Syntroleum's President and Chief Operating Officer. "This project ushers in the deployment phase of the GTL industry. We are delighted that Texaco, our first licensee, has taken the lead with Brown & Root to move the Syntroleum Process forward to a commercial plant."

"Brown & Root is pleased to be a part of the first commercial plant," stated Dave Lesar, President and Chief Operating Officer of Halliburton Company. "We anticipate this project will open the way for numerous applications to a wide range of gas reserves throughout the world. The Syntroleum Process will allow our customers to capture more value from the full range of their energy assets."

Texaco's Global Gas and Power Business Unit offers global experience in bringing increased value to worldwide customers covering the entire span of gas operations from well-head to consumer, including natural gas, natural gas liquids, power and syngas. The company also has substantial global experience in all aspects of independent energy production and gasification - pioneered by Texaco.

Brown & Root, a subsidiary of Halliburton Company (NYSE: Hal), is a global engineering, construction and diversified services company employing 30,000 people worldwide.

Tulsa-based Syntroleum Corporation licenses its proprietary process for converting natural gas into synthetic crude oil and transportation fuels. The process can be applied in plant sizes ranging from 2,000 barrels per day to 50,000 barrels per day and larger.

Updated: December 1997