press release

Texaco Press Release - The Following Press Release Was Issued By Caltexcaltex, Shell

CALTEX, SHELL TO INTEGRATE TWO THAI REFINERY OPERATIONS

19 January, 1998
Irving, Texas

Caltex Petroleum Corporation confirmed today that its Thai refining affiliate, Star Petroleum Refining Co., Ltd. (SPRC) has signed a Memorandum of Understanding with Shell International Holding's Rayong Refining Co., Ltd. (RRC) to integrate the operation of the two refineries.

SPRC and RRC own new refineries commissioned in 1996 which are situated in the Map Ta Phut industrial estate, about 90 miles southeast of Bangkok. Both Caltex and Shell own 64 percent of their respective refining affiliates, with the remaining 36 percent held by the state oil company, PTT.

Under the agreement, ownership of the underlying refining assets, together with their associated financing liabilities, will remain for the foreseeable future with SPRC and RRC. The facilities will be linked by pipelines and operated as a single entity by a single operating and management company.

The combined plant will have a capacity of 300,000 barrels per day--one of the largest petroleum refining complexes in Southeast Asia. Both plants are state-of-the-art, energy efficient, with the latest automated control technology, and designed to meet stringent environmental standards. The RRC plant is oriented towards the production of middle distillates, while the adjacent SPRC plant is oriented towards gasoline production. The combined plant is also expected to benefit from economies of scale and other efficiencies.

After regulatory approvals by Thai authorities, decisions on operating procedures, and pre-integration inspections of the refineries, the arrangement will take effect in the latter half of 1998.

Caltex Petroleum Corporation, jointly owned by Chevron and Texaco, refines and markets petroleum products through subsidiaries and affiliates in over 60 countries. Its corporate office is in Irving, Texas.

Updated: January 1998