press release

Texaco Press Release - Texaco-Led Partnership to Develop Brazil Power Project 240-Megawatt Facility

240-Megawatt Facility To Sell Electricity To State Utility

FOR RELEASE: MONDAY, APRIL 20, 1998.

WHITE PLAINS, N.Y., April 20 -- Texaco announced today that Pecem Energia S.A., comprised of Texaco Brasil S.A. and two Brazilian companies, has reached an agreement to sell electricity from a 240-megawatt power facility to Coelce, the local utility in the Brazilian State of Ceara. The natural gas-fueled, combined cycle plant will be located in the northern city of Pecem. Plant start-up is scheduled for 2000.

Participating in the project with Texaco Brasil S.A. are Companhia Siderurgica Nacional (CSN) and Taquari Energetica S.A. Petroleo Brasiliero S.A. (Petrobras), Brazils national oil company, will supply the required natural gas for the power plant through the Ceara state-owned gas distribution company CEGAS.

Commenting on the agreement, Graham H. Batcheler, President of Texaco Global Gas & Power - International Marketing & Business Development, stated, The collective strengths and capabilities of Texaco and our partners was instrumental in the selection of Pecem Energia S.A. in this competitive bidding process. The development of this facility is part of Texaco's strategic objective to pursue promising opportunities in the Brazilian energy sector.

Texaco Global Gas & Power, a unit of Texaco Global Business, develops independent power plants worldwide and, with its partners and affiliates, operates private power generation facilities producing more than 2,200 megawatts of electricity, with another 2,100 megawatts under development. In addition, Texaco has licensed its gasification power technology to refineries and utilities, which will generate more than 2,300 megawatts.

Texaco has been an active participant in the fuels and lubricants marketing sectors of Brazil for over 80 years and has an established reputation for quality products and service. Currently, Texaco Brasil S.A. has approximately 1,200 employees and more than 3,000 retail gasoline facilities. Texaco is also the number one lubricant supplier in the country.

Updated: April 1998