1. TEXACO by ABUBAKAR ZAKARI MUKHTAR VIVIAN AJAYI ABDULBAKI IBRAHIM SADIQ ABDU ALI Texaco1

2. OVERVIEW O About Texaco O Risks Faced By Texaco O Management O Conclusion O Questions Texaco 2

3. About Texaco O Texaco meaning the Texas Company is an American oil founded in Beaumont, Texas 115 years ago. O It was founded by Joseph S. Cullinan, Thomas J. Donoghue, Walter Benona Sharp and Arnold Schlaet. O Texaco has its headquarters at San Roman, California, U.S. with other 2000+ locations. Texaco3

4. About Texaco(cont.) O Texaco can also be seen worldwide. O It was among the companies that dominated the global petroleum industries from mid 1940s-1970s O Texaco was an Independent company until 2001. Texaco4

5. About Texaco(cont.) O The products are: O Petroleum O Natural gas O Other petro - chemicals Texaco5

6. RISKS FACED BY TEXACO O Legal risks O Political risks O Financial and market risks O Operational risks O Environment and health Texaco6

7. LEGAL RISKS O Legal risks O Pennzoil November 19, 1985 won an $10.53billion dollars law suit against Texaco O In 1996 Texaco paid $170milion to settle racial discrimination law suit Texaco7

8. POLITICAL RISKS O Multinational companies are more prone to political risk O One way politics affect oil companies (TEXACO) is in the regulatory sense O Political instability Texaco8

9. MANAGEMENT OF POLITICAL AND LEGAL RISK O Careful analysis O Building sustainable relationship with its international oil and gas partners Texaco9

10. FINANCIAL AND MARKET RISKS O Fluctuation in prices O Supply and demand risk O Texaco faces competition from other oil and energy producing companies Texaco10

11. MANAGEMENT OF FINANCIAL AND MARKET RISK O Investment in alternative business O Reaction to other firms action Texaco11

12. OPERATIONAL RISKS O Drilling operation O Manufacturing risk O Development of natural gas from shale Texaco12

13. MANAGEMENT OF OPERATIONAL RISKS O Managing risk in manufacturing: O They have rigorous programs in place identify, manage and reduce risk which includes: O Frequent routine equipment inspections O System and process hazard identification evaluations O Extensive personnel training Texaco13

14. Management of development of natural gas from shale O Development requires hydraulic fracturing O Fracturing is done thousands of feet beneath groundwater aquifers O Designing proper wells and control system is a form of risk prevention Texaco14

15. DRILING OPERATIONS RISK O Texaco has extensive processes and procedures in place to manage and evaluate the risks of oil and gas production O Rigorous in-house training for our drilling personnel O Fully compliant and dependable systems to reduce drilling operations risk Texaco15

16. ENVIRONMENT AND HEALTH RISKS O Oil spillage O Pollution: In 1993 Ecuadoran Amazon filled a billion dollars class action against Texaco O Climate change O Health O Storm severity O Fire outbreak Texaco16

17. Management of environmental and health risks O Personal safety O Identifying hazards and taking actions to reduce them O Personal safety performance O Provides support program & services to help employees have a better life O Combination of processes policies, benefits and environmental support O Self insurance Texaco17

18. Conclusion O Texaco’s Risk Management is responsible for reviewing and managing risks for Texaco Inc. O It protects Texaco’s operations from undue financial exposure caused by unforseen circumstances. Texaco18

19. Thank You for listening Texaco19