This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, Texas Petroleum Company, and archived here for record purpose.
View this press release in Spanish. [PDF]
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GUATEMALA, Aug. 27, 2002 -- Texas Petroleum Company, a ChevronTexaco subsidiary, announced today the closure of its refining operations at the Texaco refinery located in Escuintla, Guatemala. The company under Texaco Guatemala Inc. will continue to supply fuel through a new and modern distribution terminal and market under the Texaco brand.
The decision to cease refining operations was motivated by the competitive conditions of the global market which require cost efficiencies only available in refineries with greater scale and technology and also by the expiration in December 2002 of an agreement which permits the company to operate the refinery in Guatemala.
"Our employees have always shown loyalty, high performance and commitment to excellence. To compensate those employees who are affected by this decision, a severance package will be provided," stated Orson J. Lou, refinery general manager in Escuintla.
Texaco Guatemala Inc. will supply fuel to the marketplace through a new terminal located in Puerto San José on the Pacific Ocean, and through the Puerto Barrios terminal in the Atlantic Coast.
"This transition from refining activities to import and distribution of final oil-derived products signifies a very important step that will strengthen our operations in Guatemala and will allow us to continue serving the community with quality products for many more years," added J. Carey McHugh, president of ChevronTexaco Latin America Products.
ChevronTexaco has been present in Guatemala for over 60 years with operations that include refining, marketing and distribution of oil-derived products, and a strong presence in the market through 187 service stations under the Texaco brand throughout the country. The Escuintla Refinery started operations in February 1965, and processed up to 17,000 barrels of crude oil per day.