Texaco announces inauguration of second offshore platform in Colombia.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Dec. 9--Texaco announced today the inauguration of Chuchupa-B, the second offshore platform at the Chuchupa gas field offshore Colombia. Located 10 miles off Colombia's north-east coast, the Chuchupa field was discovered in 1973 and put on production in 1977. It is one of three gas fields operated by Texaco in Colombia's Guajira Province. Estimated remaining recoverable gas reserves from the three fields are in excess of four trillion cubic feet.

Chuchupa-B, located 10 miles from shore in 112 feet of water, commenced production on October 26 with the completion of the first of three horizontal wells. A second horizontal well has since been completed. Each of these first two wells are now producing at rates above 70 million cubic feet per day (MMCFD). A third well is currently nearing completion. Additional field development from the nine slot structure will be timed to meet demand.

The Guajira gas fields are operated by Texaco under a 50/50 Association Contract with Ecopetrol, the Colombian national oil company, until December 31, 2004. After that date, Texaco will continue to operate the fields until 2016 under a recently negotiated BOMT (Build, Operate, Maintain and Transfer) agreement. All of the gas produced is sold in the national market.

At the inauguration ceremony, C. Robert Black, Senior Vice President of Texaco Inc. and recently named President of Texaco Worldwide Exploration and Production, said, "The completion of the Chuchupa-B platform four months ahead of schedule and within budget is an accomplishment of which the Ecopetrol/Texaco partnership can be proud. This is an example of progress that can be made when the private sector works cooperatively with a national oil company and government to reach a common goal.

"Today, the Texaco-Ecopetrol Association is producing over 400 MMCFD representing 75% of Colombia's total gas demand. The second platform will allow the association to increase production by at least 300 MMCFD and allow the Guajira to continue as Colombia's most important source of gas well into the next century."

CONTACT: TEXACO INC.

Yorick Fonseca, 914-253-7034