Chevron Awarded New Acreage Offshore Australia Chevron Named Operator and Awarded 50 Percent Interest in Four Blocks

SAN RAMON, Calif. and PERTH, Australia, July 4 /PRNewswire-FirstCall/ -- Chevron Corporation today announced that its Australian subsidiary has successfully bid for the exploration rights to four deepwater blocks with significant natural gas potential in the Carnarvon Basin offshore Western Australia. Chevron Australia will be the operator and will hold a 50 percent interest, together with Shell Development Australia, which will hold the remaining 50 percent interest.

The permit areas, WA-364-P, WA-365-P, WA-366-P and WA-367-P, are located on the Exmouth Plateau, 160 -- 480 miles (100 to 300 kilometers) northwest of the Western Australian coastline. The Plateau is the deep-water frontier of the Carnarvon basin, Australia's premier petroleum basin, which includes the North West Shelf and Greater Gorgon resources.

John Watson, Chevron International Exploration and Production president, said, "Our successful bid for this exploration acreage reflects Chevron's ongoing commitment to the exploration and development of Australia's petroleum resources. It is also evidence of our intention to continue the pursuit of attractive growth opportunities in the region as we build an integrated global gas business.

"We plan to use Chevron's proprietary seismic techniques and extensive deepwater project experience in combination with our joint-venture partner to deliver greater value," said Watson.

Jay Johnson, managing director of Chevron Australia, added, "Western Australia is a cornerstone of Chevron's plans to build an internationally competitive gas business to supply energy to Australia, Asia and North America West Coast. The award of this new acreage comes on the heels of our successful exploration offshore Western Australia last year, which resulted in the Wheatstone gas discovery."

The proposed three-year work program includes the acquisition of 3,068 miles (5,032 km) of two-dimensional seismic, 1,359 square miles (3,521 km2) of three-dimensional seismic and the drilling of two exploration wells. Seismic work will begin later this year. There is potential for a further three-year work program.

Headquartered in Perth, Western Australia, Chevron Australia is leading the development of, and is a joint-venture participant in, the Greater Gorgon Area licences; is a joint-venture participant in the North West Shelf Venture; and is operator and joint venture participant in the Barrow Island and Thevenard Island oil fields. All are located off the northwest coast of Australia.

Chevron Corporation is one of the world's leading energy companies. With more than 47,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron Corporation is based in San Ramon, California, USA. More information on Chevron Corporation is available at http://www.chevron.com/

Note to Editors: -- Map of license area available upon request. -- ChevronTexaco Australia Pty Ltd changed its name to Chevron Australia Pty Ltd on 1 July. The permits have been awarded in the name of ChevronTexaco Australia Pty Ltd, Chevron's Australian subsidiary.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the planned development of Australian assets. The statements are based upon management's current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, neither Chevron does not undertake any obligation to update publicly any forward-looking statements herein, whether as a result of new information, future events or otherwise.