Texaco and Shell Form Equilon Enterprises

Texaco Inc. and Shell Oil Co. have announced the formation and operational start up of their joint venture combining major elements of their western and midwestern U.S. refining and marketing businesses and their nationwide trading, transportation and lubricants businesses. Shell will have 56 percent ownership and Texaco will hold 44 percent of the company.

James M. Morgan, president and CEO of Shell Oil Products Co., will be president and CEO of Equilon Enterprises.

"This combination of Texaco and Shell assets will allow us to accomplish a fundamental change in the way we operate our downstream businesses, improve performance and create an environment to grow the business," said Texaco chairman and CEO Peter Bijur.

"Equilon Enterprises will market gasoline and other products under both the Shell and Texaco brands, which are key recognizable strengths of the new company," said Morgan. "These quality brands and our highly talented, innovative people promise to be a winning combination in every respect."

The exploration, production and chemical businesses of these companies are not included in the alliance.

Texaco Inc. is based in White Plains, N.Y. Shell Oil Co. is a Houston-based affiliate of the Royal Dutch/Shell group of companies. Saudi Aramco is the state-owned oil company of the kingdom of Saudi Arabia. The company's U.S. corporate affiliate, Saudi Refining, Inc., is based in Houston.