LOS ANGELES, Nov. 18, 1999 (PRIMEZONE)-- Occidental Petroleum Corporation (NYSE:OXY)announced today that its OXY USA subsidiary has agreed to resolve its long-standing Oklahoma litigation with Chevron U.S.A. Inc. (a subsidiary of Chevron Corporation (NYSE:CHV)) for a cash payment of $775 million from Chevron U.S.A. This litigation arose from the 1982 termination by Gulf Oil Corp. (which was subsequently acquired by Chevron) of its merger agreement with Oklahoma-based Cities Service Company (which was subsequently acquired by Occidental). In 1996, a judgment in favor of OXY USA (formerly Cities Service) was entered against Chevron U.S.A. by a state district court in Tulsa, Oklahoma. The Oklahoma Supreme Court affirmed the trial court judgment earlier this year. Shortly thereafter, Chevron filed a petition to the U.S. Supreme Court to review the judgment. That petition is still pending, but will now be withdrawn under the terms of the agreement with Chevron U.S.A.
Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental, said, "We are pleased to conclude this lengthy litigation with an agreement which resolves all issues, and gives Occidental the benefit of immediate use of the proceeds. This very substantial payment will be of great benefit to our shareholders. To that end, we intend to use the proceeds primarily to pay down company debt."