TEXACO FOLLOWS ARCO AND CLOSES INDIA OFFICE

Vol 3, PW 10 (09 Jun 99) Midstream & Downstream
     

Texaco is closing its liaison office in India.

Jagjit Yadav, Texaco representative, will leave his office at the Radisson Hotel in Delhi and return to the US. Texacos office was set up in September 1996 as a base to scout for upstream opportunities.

Reason for the closure: delay in Indian decision-making and internal pressure to cut costs. Texaco will not be bidding for blocks under the New Exploration Licensing Policy (NELP).

A source tells this report Texaco is thoroughly disillusioned with local bureaucracy and the slow pace of developments. "Yadav has been here three years clocking up five star bills and hes got nothing to show for it".

Texacos decision does not mean it has given up on India. The company has incorporated an Indian subsidiary to function as a cost centre for business development.

In future, teams from Texaco USA and UK will fly in at periodic intervals and their expenses will be met out of this subsidiary. Texaco has recruited a resident advisor to manage the company as well as act as a listening and transmission post.

Texaco is actively pursuing opportunities in refinery based power projects. The company is interested in pushing its technology for the manufacture of syn gas from petcoke for use in power projects and is reportedly close to signing deals with two refineries.