EXHIBIT 99.2

                    TEXACO ANNOUNCES FOURTH QUARTER CHARGES
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           Inventory and Asset Write-Downs, Restructuring Costs Noted

FOR  IMMEDIATE  RELEASE:   FRIDAY,  JANUARY  8,  1999.
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WHITE PLAINS, N.Y., Jan. 8 - Texaco announced today that its fourth quarter 1998
results will include net special charges of approximately  $350 million.  Texaco
Senior  Vice  President  and Chief  Financial  Officer  Patrick J. Lynch  noted,
"Continuing  weak demand and surplus supplies have driven crude oil, natural gas
and refined product prices sharply downward.  In this low price environment,  we
will be required to revalue  inventories.  We will also  write-down  oil and gas
properties where remaining investments will not be fully recovered."

Fourth quarter 1998 net after-tax charges will include:


* Inventory write-downs of approximately $170 million in businesses in Europe, 
  the U.S. and the Caltex operating areas to recognize current market values;

* Asset write-downs of $100 million relating to the impairment of upstream 
  investments in the U.S., Canada and the U.K. North Sea;

* Employee  separation  costs of $95 million  relating to  previously  announced
  restructuring of  Worldwide  Upstream  and Natural Gas  businesses, along with
  Corporate Center restructuring and other cost-cutting initiatives; and

* Tax benefits of $20 million on asset sales.


Additionally,  Caltex has elected to adopt,  effective January 1, 1998, SOP 98-5
of the AICPA,  causing Caltex to change the accounting for start-up costs at its
Thailand  refinery.  Texaco's  first  quarter 1998  earnings will be restated to
include an  after-tax  charge of $25 million  for the  accounting  change.  (See
editor's notes for definition of SOP 98-5.)

Commenting on fourth quarter 1998 earnings,  Lynch said,  "Due to continuing low
crude oil prices,  weak refining margins and currency  translation losses of $65
million  in the  Caltex  Asian  operations,  results  for  the  fourth  quarter,
excluding net special charges,  are estimated to be in the range of $.13 to $.16
per share."

Lynch went on to say,  "This past year was  extremely  difficult  for the entire
industry  and first  quarter 1999  appears to be equally  challenging;  however,
Texaco will continue to  effectively  manage its business  during this period of
low energy prices."


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Note:  SOP 98-5 is an  accounting  rule  adopted by the  American  Institute  of
Certified  Public  Accountants  (AICPA) in 1998. It provides that costs incurred
during the start-up period for a new facility, new product,  process or service,
or  expansion  of business  area or customer  base must be charged to expense as
incurred.  This does not include  costs during the  construction  phase of a new
facility.

The comment in this press release regarding  anticipated  fourth quarter results
is a "forward-looking  statement." Final fourth quarter results may be different
when actual  results are  determined.  For a further  discussion  of  additional
factors that could cause actual  results to materially  differ from those in the
forward-looking statement, please refer to the section entitled "Forward-Looking
Statements" in Texaco's 1997 Annual Report on Form 10-K.

CONTACTS:     Faye Cox     914-253-7745

Additional Texaco information is available on the World Wide Web at:  
http://www.texaco.com