Saudis, Texaco Sign Oil Pact

Saudi Arabia and Texaco Inc. today signed a $1.8-billion deal creating a joint venture called Star Enterprise to refine, distribute and market oil products in 23 American states.

The deal gives the Saudi kingdom, the world’s biggest crude oil exporter, access to the world’s largest oil market and is a major step toward integrating its operations from the well to the gas pump. The statement said the Houston-based joint venture, due to start operating by Dec. 31, would enable the firm to rank third behind Exxon Corp. and Mobil Corp. in oil sales in the 23 states and 10th in the whole of the United States.