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TEXACO SIGNS AGREEMENT WITH OPIC ON WESTERN SIBERIA PROJECT AT WHITE HOUSE CEREMONY

 WHITE PLAINS, N.Y., Sept. 2 /PRNewswire/ -- Texaco Inc. (NYSE: TX) announced today that it has signed an agreement with the Overseas Private Investment Corporation (OPIC) which will provide financial guaranty and insurance for the Sutormin project in Western Siberia being undertaken by its subsidiary, Texaco International Operations Inc. (TIOI).
 Texaco Inc. Chairman and CEO Alfred C. DeCrane, Jr., co-signed the memorandum with OPIC President Ruth R. Harkin at a special White House ceremony today in the presence of Vice President Al Gore and Russian Federation Prime Minister Victor Chernomyrdin.
 "These agreements assist Texaco by providing additional support for Texaco's contract within the Russian Federation to restore hydrocarbon production in Western Siberia," said DeCrane.
 "OPIC has been exceptionally helpful in structuring these arrangements, and we look forward to working with them on future projects. The corporation is a valuable resource for U.S. companies making investments with the Newly Independent States and to assist in revitalizing NIS economies."
 The agreements with OPIC protect Texaco's investment in its Sutormin project by structuring a combination of political risk insurance and guaranteed loans. The latter, the first revolving credit transaction undertaken by OPIC, is funded through Chemical Bank.
 The first phase of the Sutormin project, with an initial term of two years, is expected to generate positive net U.S. balance of payments of around $76,192,000, the procurement of approximately $71,600,000 in goods and services from the United States and provide U.S. employment opportunities for Texaco personnel and subcontractors.
 In March this year, TIOI announced that it had concluded an agreement with Sutorminskneft, a Western Siberian oil and gas production association, to restore production from idle wells in the Sutormin field in Western Siberia. At that time, approximately 40 percent of the wells in the field were idle.
 TIOI commenced production in the field this June. The company, employing advanced technology and following strict environmental practices, has restored production from the first nine idle wells, generating more than 4,000 barrels per day of petroleum.
 Located in the northern portion of the Tyumen region of Western Siberia, the Sutormin field lies approximately 200 miles south of the Arctic Circle and approximately 1,500 miles east of Moscow. The field, which contains 35-degree API gravity sweet crude, has recoverable reserves of approximately one billion barrels.
 -0- 9/2/93
 /NOTE TO EDITOR: A map of Sutormin location is available upon request/
 /CONTACTS: Dave Dickson, 914-253-4128, or Sean Galvin, 914-253-6159, both of Texaco/
 (TX)


CO: Texaco Inc.; Overseas Private Investment Corporation ST: New York IN: OIL SU: CON

MP -- NY046 -- 8426 09/02/93 12:35 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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