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                                                                    EXHIBIT 99.2


                              [TESORO LETTERHEAD]


MEDIA RELEASE



FOR IMMEDIATE RELEASE


CONTACT:
      SUSAN PIROTINA, VICE PRESIDENT, COMMUNICATIONS, (210) 283-2631




        TESORO TO PURCHASE PACIFIC NORTHWEST AREA RETAIL SITES

         SAN ANTONIO -- SEPTEMBER 4, 2001 -- Tesoro Petroleum Corporation
(NYSE:TSO) announced today that its wholly owned subsidiary, Tesoro West Coast
Company, has entered into a purchase and sale agreement to acquire 46 retail
fueling facilities, including 37 retail stations with convenience stores and
nine commercial card lock facilities, located in Washington, Oregon and Idaho.
These properties are being purchased from Gull Industries, Inc., a privately
held company based in Seattle, Washington. The transaction is expected to close
in the fourth quarter of 2001.

         "In accordance with our goal to become the premier refining and
marketing company in the western United States, we have established a retail
marketing infrastructure that enables us to supply and operate acquired sites
such as these in a cost-effective manner, and to meet our customers' needs of
convenience, value and customer service," said Richard Parry, Senior Vice
President-Retail.

         "In addition, this transaction will allow us to sell more of our own
gasoline and diesel production at retail, thus moving product that was being
sold at wholesale into a higher-value market channel. We plan to convert these
locations to the Tesoro brand," Parry added.

         Tesoro Petroleum Corporation is an independent refiner and marketer of
petroleum products. The Company recently announced that it has reached an
agreement to acquire BP's Mandan, North Dakota, and Salt Lake City, Utah,
refineries and associated storage, pipeline, distribution and gasoline
marketing operations. After closing, the Company will operate five refineries in
the western U.S. with a combined capacity of approximately 390,000 barrels per
day, making it the second largest independent refiner and marketer in the
region. Tesoro's marketing system will include more than 600 branded retail
stations, of which approximately 160 will be company-owned.

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TESORO 2/2/2/2


         This news release contains certain statements that are
"forward-looking" statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements contain projections as to the expected date of
closing of the transaction. Factors which may cause actual results to differ
from those forward-looking statements include, changes in general economic
conditions, disruptions due to equipment interruptions or failure at Tesoro or
third-party facilities, and other factors beyond Tesoro's control. For more
information concerning factors that could cause such a difference, see Tesoro's
annual report on Form 10-K and other of Tesoro's reports filed with the
Securities and Exchange Commission. Tesoro undertakes no obligation to publicly
release the result of any revisions to any such forward-looking statements that
may be made to reflect events or circumstances that occur, or which Tesoro
becomes aware of, after the date hereof.




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