Chevron and Kyushu Electric Sign Wheatstone LNG Sales Agreements

Agreement to deliver 0.8 million tons of LNG for up to 20 years

SAN RAMON, Calif. – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed a Sale and Purchase Agreement (SPA) with Kyushu Electric Power Co. for the delivery of liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

Under the binding agreement, Chevron, together with Apache and Kufpec, will deliver up to 0.7 million tons per annum (MTPA) of LNG to Kyushu Electric for up to 20 years.

Kyushu Electric will also acquire 1.83 percent of Chevron’s equity share in the Wheatstone field licenses and a 1.46 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow. Including the equity participation volume, Kyushu Electric will take delivery of 0.8 MTPA of LNG from the Wheatstone Project.

John Gass, president, Chevron Gas and Midstream, welcomed Kyushu Electric as a foundation customer of the Wheatstone Project.

“We are pleased to build on our relationship with Kyushu Electric as a long term customer of the North West Shelf Venture and, more recently, as a customer of the Chevron-operated Gorgon Project. This SPA is an important milestone as we progress towards a final investment decision in 2011.”

Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company, said, “We are working with all levels of the Australian government and anticipate timely project approvals, which will enable a final investment decision to be made. Wheatstone will be one of Australia’s largest resource projects and once it is approved will create jobs and substantial economic benefits for the country.”

The Chevron-operated Wheatstone Project will become one of Australia’s largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.

Chevron 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 its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company 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. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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