Texaco agrees

Press, 25 February 1988, Page 25

Texaco agrees

NZPA-Reuter New York Texaco said it had agreed to pay the Government SUSI.2S billion, plus interest, to settle Federal charges that it violated oil price controls between 1973 and 1981. The Energy Department’s claims against the company totalled more than SUS2.I billion. Texaco said the agreement settles its dispute with the department stemming from the company’s crude oil and refined product pricing when, Federal oil price controls were in place. Texaco, the third-largest U.S. oil company, said the settlement would have no impact on its current earnings because the payment would be covered by reserves included in its bankruptcy plan. Texaco is currently in bankruptcy proceedings as a result of its drawn-out battle with Pennzoil Company. Late last year Texaco agreed to pay Pennzoil SUS 3 billion in a settlement plan now under shareholder consideration.

Texaco said it would pay the Energy Department SUS4OO million shortly after the agreement was finalised. It said the balance would be paid in five instalments, with the first payment of SUSI9O million due 18 months after the agreement becomes effective.