"Yes, we will be petitioning the US Supreme Court," said Chevron spokeswoman Dawn Soper. "Chevron is disappointed by the ruling." Occidental said, including interest, the total award exceeded $960 million. The award was for a breach of contract in a merger deal that fell apart 17 years ago. Gulf Oil Corp., later acquired by Chevron, backed out of a merger agreement with Cities Services Co. in 1982. Cities, based in Tulsa, Okla., was later bought by Occidental.

Chevron had appealed a 1996 trial judge decision to the Oklahoma Supreme Court. On Tuesday the Oklahoma court denied Chevron's petition to rehear the case in a 8-1 decision. Occidental said in a statement it was pleased with the decision. Chevron took a $637 million charge against its fourth quarterearnings because of the damages award and reported a loss of $206 million, or 31 cents a share, in the quarter. It reported the loss after originally reporting a profit of $431 million, or 66 cents a share.