Texaco to sell oilfields and save dollars 300m in management shake-up

TEXACO, the oil multinational, has announced a sweeping reorganisation, including the sale of several hundred smaller US oilfields and the elimination of layers of management, which is expected to save dollars 300m a year.

The restructuring will involve the disposal of about half of Texaco's oil and gas- producing fields in the US, which the company says will be exchanged or sold. Texaco has about 600 domestic oilfields, producing 423,000 barrels per day. The 300 oil and gasfields Texaco will keep account for more than 90 per cent of the profits, production and reserve base of the US operations.

Proceeds from the sales will be channelled into increasing production in the remaining operations.

Internationally, Texaco said it was receiving bids for its equity interest in downstream activities in Nigeria and other West African countries including Cameroon and Ivory Coast.

International production totals 305,000 barrels per day. As part of the reorganisation Texaco will sell its heavy oil- producing properties in Colombia. In Europe and Latin America, the management structure is being simplified, and functions such as financial management and accounting are being consolidated.

Texaco will take a pre-tax charge of dollars 165m against its second-quarter earnings to reflect the measures, including dollars 49.5m relating to the sale of Texaco Chemical Company to Hunstman Corporation in April.

In the second quarter of 1993 Texaco reported profits of dollars 309m.