Chevron Commences Operations on Next Generation Ultra-Deepwater Drillship

Discoverer Clear Leader Designed to Drill Wells to a Total Depth of 40,000 Feet

SAN RAMON, Calif. - Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corporation (NYSE: CVX), today announced that the Discoverer Clear Leader, an ultra-deepwater drillship newly built to Chevron’s specifications, has begun work for Chevron in the deepwater U.S. Gulf of Mexico under a five-year contract with Transocean. The state-of-the-art vessel is capable of drilling wells in 12,000 feet (3,650 meters) of water to a total depth of 40,000 feet (12,200 meters), surpassing the limits of previous technology.

“The Discoverer Clear Leader offers the most-advanced drilling capabilities in the offshore drilling industry and will enable Chevron to expand the search for new domestic sources of energy,” said George Kirkland, executive vice president, Upstream and Gas, Chevron.

Chevron is one of the top lease holders and producers in the deepwater Gulf of Mexico. The drillship will begin work for Chevron at several of its deepwater projects, including Tahiti and Jack/St. Malo.

The Discoverer Clear Leader is the first of two new drillships to be commissioned for Chevron. The second vessel, the Discoverer Inspiration, is expected to be delivered in early 2010.

The drillship features Transocean’s patented dual-activity drilling technology designed to enable parallel drilling operations from a single derrick, saving time and money in deepwater well construction compared with conventional rigs.

Chevron has already established itself as a leader in drilling capabilities. The company holds the current world water-depth drilling record of 10,011 feet (3,051 meters) of water in the Gulf of Mexico.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of approximately 62,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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 Chevron’s activities in the U.S. Gulf of Mexico. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “estimates,” “budgets” and similar expressions are intended to identify such forward-looking statements. 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. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. 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, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.