Saudi Arabian Texaco and Kuwait Oil Company Announce Discovery in Partitioned Neutral Zone.

LONDON--(BUSINESS WIRE)--Oct. 5, 1998--Saudi Arabian Texaco Inc. (SAT) and Kuwait Oil Company (KOC) today announced an oil and gas discovery on the Humma prospect in the Partitioned Neutral Zone (PNZ) between Kuwait and Saudi Arabia.

The discovery well, Humma No.4, is jointly operated by SAT and KOC on behalf of the Kingdom of Saudi Arabia and the State of Kuwait respectively, and is located approximately 25 kilometres (16 miles) south-west of the companies' Wafra field. The well was drilled to a total depth of 10,180ft and encountered 726 feet of gross pay in five zones. During well-testing, 32 degree API crude oil and sweet gas flowed at a combined rate of 3,400 barrels per day, with flowing pressure of up to 1,649 pounds per square inch. Typically, PNZ crude is significantly heavier, at 18-23 degree API.

Further seismic and drilling work will be carried out on the prospect, before a decision on possible future development is made during 1999.

Notes to editors:

The resources of the PNZ are shared equally between the Kingdom of Saudi Arabia and the State of Kuwait. Saudi Arabian Texaco has operated on behalf of the Kingdom in the PNZ since 1984, when Texaco purchased Getty Oil Company and assumed its rights in the zone. The Kuwait Oil Company represents Kuwait's interests. Operations are conducted through a joint operations group, staffed and funded by the two companies. Other jointly operated fields in the PNZ include: Wafra, South Fawaris and South Umm Gudair.

Additional Texaco information is available on the World Wide Web at: http://www.texaco.com