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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 24, 1996
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TEXACO INC.
(Exact name of registrant as specified in its charter)
Delaware 1-27 74-1383447
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation) Number) Identification Number)
2000 Westchester Avenue, 10650
White Plains, New York (Zip Code)
(Address of principal executive offices)
(914) 253-4000
(Registrant's telephone number, including area code)
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Item 5. Other Events
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1. On December 24, 1996, the Registrant announced that Huntsman
Corporation will purchase the Registrant's propylene oxide/methyl
tertiary butyl ether (PO/MTBE) business for approximately $600 million,
primarily cash. The earnings effects of this transaction will not be
material in relation to the consolidated financial position or results
of operations of the Registrant and its subsidiaries. The cash proceeds
from the sale will be used to retire a related lease obligation.
In connection with this matter, on December 24, 1996 the Registrant
issued a Press Release entitled "Texaco Sells PO/MTBE Business to
Huntsman Corporation," a copy of which is attached hereto as Exhibit
99.1 and made a part hereof.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
99.1 Press Release issued by the Registrant dated December 24, 1996,
entitled "Texaco Sells PO/MTBE Business to Huntsman Corporation."
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TEXACO INC.
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(Registrant)
By: R. E. KOCH
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(Assistant Secretary)
Date: January 6,1997
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EXHIBIT 99.1
TEXACO SELLS PO/MTBE BUSINESS TO HUNTSMAN CORPORATION
FOR RELEASE: TUESDAY, DECEMBER 24, 1996.
WHITE PLAINS, N.Y., Dec. 24 - Texaco Inc. today
announced that Huntsman Corporation will purchase Texaco's
propylene oxide/methyl tertiary butyl ether (PO/MTBE) business
for approximately $600 million.
The PO/MTBE manufacturing site is located adjacent to
Huntsman facilities at Port Neches, Texas. Huntsman has operated
the plant for Texaco since it began operations in August, 1994.
It has a production capacity of approximately 400 million pounds
per year of propylene oxide and approximately 15,000 barrels per
day of MTBE.
Texaco Chairman and Chief Executive Officer Peter I. Bijur
commented, "This is the last major step in the sale of Texaco's
chemical business and is in keeping with our plans to focus on
our core oil and gas business. Huntsman Corporation will
continue to be both a customer and a supplier to Texaco."
Huntsman Corporation Chairman and Chief Executive Officer
Jon M. Huntsman commented, "This acquisition will greatly enhance
our product integration and diversification by allowing us to add
propylene oxide to our list of core products. It also will make
us the nation's second-largest producer of MTBE, with capacity of
more than 27,000 barrels per day."
Propylene oxide is a highly versatile petrochemical used in
the home furnishings, construction, appliance, packaging,
transportation and surfactants industries. Among its many
product applications are foams for furniture and automobile
seats; pleasure boats; fiberglass tubs and showers; aircraft
deicing fluids; dishwasher detergents; and industrial solvents.
MTBE is a gasoline additive and oxygenate that increases
octane and causes gasoline to burn more cleanly. Many areas of
the country use MTBE, particularly in winter months, to help meet
the requirements of the U.S. Clean Air Act.
As part of today's agreement, Huntsman also will acquire
Texaco's exclusive, state-of-the-art PO/MTBE manufacturing
technology, including the right to license the technology around
the world.
Huntsman is a major consumer of propylene oxide for the
production of its specialty amines and surfactants. Texaco and
Huntsman have negotiated a long-term MTBE supply agreement.
It is anticipated that closing will take place in the first
quarter 1997.
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CONTACTS: Texaco Paul Weeditz 713-752-6475
Huntsman Don Olsen 801-584-5700