Texaco said its fourth quarter 1998 results will include netspecial charges of about $350 million. “Continuing weak demand andsurplus supplies have driven crude oil, natural gas and refinedproduct prices sharply downward. In this low price environment, wewill be required to revalue inventories. We will also write-downoil and gas properties where remaining investments will not befully recovered,” said Texaco CFO Patrick J. Lynch.

Fourth quarter 1998 net after-tax charges will include inventorywrite-downs of about $170 million in businesses in Europe, theUnited States, and the Caltex operating areas to recognize currentmarket values; asset write-downs of $100 million relating to theimpairment of upstream investments in the United States, Canada,and the U.K. North Sea; employee separation costs of $95 millionrelating to the previously announced restructuring of worldwideupstream and natural gas businesses, along with corporate centerrestructuring and other cost-cutting initiatives; and tax benefitsof $20 million on asset sales.

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