TEXACO CANADA <TXC> LIKELY NOT IN A TEXACO PACT
Texaco Canada Inc, 78 pct owned by
Texaco Inc <TX>, likely would not form any part of a possible
settlement in a 10.3 billion U.S. dlr legal battle between
Texaco Inc and Penzoil Co <PZL>, Texaco Canada chief executive
Peter Bijur told reporters.
    "I just just don't believe that it (Texaco Canada) would be
part of any settlement," Bijur said during a interview.
    Bijur said he could not comment directly on the
Texaco-Penzoil dispute, adding he had no first-hand information
concerning efforts by Texaco and Penzoil to resolve the matter.
    "We don't have any problems that I am aware of that are a
result of that litigation in the United States, and we continue
to do business on a normal, 'business as usual' basis," Texaco
Canada's Bijur told reporters during an interview session.
    As previously reported, Texaco Inc is seeking a court order
to block Pennzoil from taking action to secure a 10.3 billion
dlr judgement against Texaco.
    In reply to a query, Bijur said Texaco Inc has imposed no
spending retraints on Texaco Canada as it continues previously
reported efforts to make an energy-related acquisition.
    After considering making an acquisition for several months,
Texaco Canada set up a "business development team" of five people
about one month ago to increase its efforts, Bijur said. The
company has also widened the scope of its search to include
candidates involved in refining and marketing as well as
production segments of the industry.
    "We're going to widen the scope of our view. We're going to
look at the downstream and we're going to look at the entire
petroleum business," he said.
    Bijur declined to specify how much money Texaco Canada
would spend on an acquisition.
    Bijur said the company was not close to concluding any
acquisitions and declined to specify when he expected a
transaction might be made. "We're not in a hurry," he said.
    Texaco Canada said in the annual report it had a cash
position of 808 mln dlrs at the end of 1986, and Bijur said the
company's cash fund has not changed materially during the first
quarter.
    Commenting on earnings results, Bijur said he expected
first quarter profit to be lower than last year's earnings of
84 mln dlrs or 70 cts a share, due to lower profit contribution
from production because of lower oil prices.
REUTER^M
