1.   Although smaller in Europe than some major competitors like BP Amoco and Shell Oil, a deal would give Chevron a base to build a major European refining operation.

2.   Ashland, the second-biggest Midwest refiner behind Amoco Corp., announced in December it was seeking an alliance for its refining operations.

3.   Ashland, the second-biggest Midwest refiner behind Amoco Corp., announced in December it was seeking possible alliances for its refining operations.

4.   Big jumps in chemical prices have bolstered earnings at some oil companies, which have seen declines in refining operations.

5.   BP, which combined its refining operation in Europe with Mobil Corp. last year, is seeing huge reductions in its costs.

6.   But Mobil and Amoco reported lower earnings, hurt by weakness in refining operations.

7.   Currently, many major oil companies are combining or selling off their refining operations to be able to get better returns.

8.   Earlier this year, the company entered into a joint venture with Exxon Corp. to build a refining operation in the state of Sao Paulo.

9.   Exxon and Mobil have significant concentrations of retailing and marketing concerns in the Northeast, the Southwest and the West Coast, where they also have big refining operations.

10.   Exxon is considered a bellwether for oil company profits, and it benefits from a huge worldwide refining operation and network of gasoline stations.