First Sales of Gorgon Gas Into World’s Largest LNG Market

Chevron Australia signs Heads of Agreement for LNG sales to Tokyo Gas

SAN RAMON, Calif., and PERTH, Australia, Oct. 27, 2005 -- Chevron Corporation (NYSE: CVX) today announced that its subsidiary Chevron Australia Pty Ltd plans to sell liquefied natural gas (LNG) from the Chevron-led Gorgon Project into Japan, the world’s largest LNG market.

Chevron Australia has signed a Heads of Agreement (HOA) with Tokyo Gas Co. Ltd, a major Japanese utility company, regarding the purchase of 1.2 million tonnes per annum (MTPA) of Gorgon LNG beginning 2010 over a 25-year period. Financial details were not disclosed.

The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project.

Commenting on the announcement, John Watson, president of Chevron International Exploration and Production, said, “This agreement demonstrates the attractiveness of Gorgon LNG and moves the Greater Gorgon Area gas resources closer to commercialization. As demand for natural gas increases, Chevron is committed to connecting our large, undeveloped gas resources to growing world gas markets.”

John Gass, president of Chevron Global Gas, added, “This milestone highlights the opportunities that are emerging in the Asia-Pacific market due to rising demand for reliable and clean energy. As we continue to grow an integrated natural gas business, we are focused on maximizing the links in the entire gas value chain, from wellhead to burner tip.”

The HOA was signed by Jay Johnson, managing director of Chevron Australia, and Tadaaki Maeda, member of the board, senior executive officer and chief executive of The Energy Resources Division of Tokyo Gas, at a ceremony held in Perth, Australia.

“Chevron Australia welcomes Tokyo Gas as its first foundation customer for Gorgon, and we look forward to building on our longstanding relationship. Australia is already a leading supplier of LNG to the Asia region, and this deal puts the two groups on a firm path to finalize terms for delivery of Gorgon LNG into Japan,” said Johnson. He added, “Chevron will continue to target LNG markets in Asia and North America for its remaining volumes of Gorgon LNG.”

The Gorgon Project, located off the northwest Australian coast, is currently undertaking front-end engineering and design work. Plans include an initial two-train (10 MTPA) LNG facility and domestic gas plant located on Barrow Island. Chevron Australia holds a 50 percent operating interest, and the project participants are the Australian subsidiaries of Shell (25 percent) and ExxonMobil (25 percent).

Chevron Corporation is one of the world’s leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

Editor’s Note:
Earlier this year, the Gorgon joint-venture partners signed a framework agreement to align their equity interests and to pave the way for the combined development of Gorgon and nearby gas fields as one world-scale project. In addition, individual joint-venture participants are able to secure markets for their own share of Gorgon LNG.

Chevron is also 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.

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 Gorgon Project. Words such as “expected,” “plans” 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 the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities, due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company’s joint-venture partners to fund their share of project expenditures; 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 the 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.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as “resources” or “gas resource” and others are used in this press release that may not be permitted to be included in documents filed with the SEC. U.S. investors should refer to disclosures in Chevron’s Annual Report on Form 10-K for the year ended December 31, 2004.

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