Decision Reached in OPL 216 Arbitration; Tribunal Affirms Contracts for Agbami Deepwater Discovery.Business & Energy Editors WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Aug. 23, 2000 Texaco announced today that it has received a favorable ruling from the independent arbitration tribunal convened to examine agreements between partners in Nigeria's Oil Prospecting License (OPL OPL Open Publication License OPL Olympus Product Line (Sun) OPL outer plexiform layer OPL Organiser Programming Language (PSION) OPL On-Premise Laundry OPL Optical Path Length OPL Open Public License ) 216. The ruling unanimously and unequivocally upholds the validity of the contracts between Texaco's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Star Deep Water Petroleum Limited ("Star Deep"), and Famfa, an independent Nigerian oil company. According to a statement from Texaco, "This Block and the Agbami discovery are of strategic importance to Texaco and we are confidently moving forward on commercializing this discovery in a manner that is advantageous to all partners and will provide significant economic benefits for Nigeria. We also look forward to strengthening our working relationships with our partners Famfa and Braspetro and to the Nigerian National Petroleum Corporation's (NNPC NNPC Nigerian National Petroleum Corporation NNPC Nigerian National Petroleum Company ) participation as a 40 percent partner when the Block converts to oil mining lease (OML OML Object Manipulation Language (ODMG) OML Ordinary Maternity Leave (UK) OML Order of Merit List OML Orquestra Metropolitana de Lisboa (Portugese) OML Oil Mining License ) status." Background re: Agbami Agbami was discovered in 1999 through the drilling of a wildcat well. Star Deep, as technical advisor, along with its funding partner Braspetro, have provided the expertise and funding for all work on Block 216 to date. In January 2000, the partners announced that the testing on the Agbami-2 appraisal well confirmed that the Agbami discovery has potential recoverable reserves in excess of one billion oil equivalent barrels. Texaco's share of the production from this resource is expected to exceed 50 percent. Location: 70 miles offshore in central Niger Delta Partners: Famfa (operator) - 60% interest Texaco (technical advisor) - 32% Braspetro - 8% Size: 45,000 acres extending from Block 216 to 217 Product Light, sweet crude (45 degrees API gravity) with no Characteristics: contaminants Estimated first production: 2004 Estimated peak production: 200,000 bpd Development method: FPSO FPSO Floating Production Storage and Off-loading (shipping & oil industry) FPSO Foster Parent Society of Ontario FPSO Fleet Publication Supply Office with subsea tie backs NOTE: This press release contains a number of forward-looking statements within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of reserves; inaccurate seismic data; decreased demand for motor fuels, natural gas and other products; pipeline failures; worldwide and industry economic conditions; inaccurate forecasts of crude oil, natural gas and petroleum product prices; increasing price and product competition; price fluctuations; higher costs, expenses and interest rates; the outcome of pending and future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and governmental proceedings; cancellation of contract rights and concessions by host governments; expropriation The taking of private property for public use or in the public interest. The taking of U.S. industry situated in a foreign country, by a foreign government. Expropriation is the act of a government taking private property; Eminent Domain is the legal term describing the of property; divestiture of operations; and foreign exchange rate changes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC on March 24, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release. |
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