Chevron Announces First Oil Production from Benguela-Belize Development, Deepwater Block 14, Offshore Angola

SAN RAMON, Calif., Jan. 24, 2006 -- Chevron Corporation announced today that its subsidiary Cabinda Gulf Oil Co. Ltd. (CABGOC) commenced oil production from the Belize Field, in deepwater Block 14 offshore Angola.

The Benguela, Belize, Lobito and Tomboco fields form the BBLT Development, one of Chevron’s “Big 5” projects. BBLT is the first of the Big 5 projects to reach this significant production milestone. In December 2005, the Benguela Belize drilling and production platform in Angola was awarded Project of the Year by the Offshore Energy Association.

“Chevron is proud to take a leading role in developing Angola’s natural resources, particularly in the deepwater,” said John Watson, president, Chevron International Exploration and Production Co. “The project team successfully managed the engineering challenges within budget, ahead of schedule and, most important, in a safe manner. Benguela Belize clearly demonstrates the company’s ability to select and execute major capital projects.”

The BBLT Development, located approximately 50 miles (80 kilometers) offshore in approximately 1,300 feet (396 meters) of water, is being developed in two phases. Phase 1 – Benguela Belize –– combines an integrated drilling and production platform hub facility supported by a compliant piled tower. The compliant piled tower is the first application of this structural technology outside the U.S. Gulf of Mexico. Phase 2 –– Lobito Tomboco –– will produce via subsea wells tied into the central production hub.

“Production will continue to ramp up as additional planned wells and fields are brought into production over the next two years. The project’s daily peak production is expected to reach about 200,000 barrels of oil per day,” said Jim Blackwell, Chevron’s managing director of the Southern Africa strategic business unit.

The BBLT facilities were constructed in Angola, Korea, Europe and the United States, and have been successfully installed and commissioned.

Cabinda Gulf Oil Co. Ltd. is the operator of the Block 14 contractor group, which is comprised of the following companies:

Cabinda Gulf Oil Co. Ltd. (31%)
Sonangol Pesquisa & Produção, SARL (20%)
ENI Angola Exploration BV (20%)
TotalFinaElf Exploration & Production, Angola (20%)
Galp-Exploração e Produção Petrolífera, Ltd. (9%)

Chevron is one of the world’s leading energy companies. With more than 53,000 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 is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

Editor’s Note:
Chevron is one of the largest producers in Angola and the first to produce in deepwater. The company has an interest in four concessions adding up to 4,700 square miles (12,172 sq. km).

* Block 14 is situated within the Lower Congo Basin, offshore Angola. It covers approximately 1,500 square miles (4,000 square kilometers), in water depths extending from approximately 600 to 6,000 feet (180 to 1,800 meters).
* There have been nine discoveries in Block 14 since 1997:

Kuito (1997)
Benguela (1998)
Belize (1998)
Landana (1998)
Lobito (2000)
Tomboco (2000)
Tombua (2001)
Gabela (2002)
Negage (2002)

* Kuito Field, which was discovered in 1997, began the first phase of production on Dec. 15, 1999. The short cycle time from discovery to first oil (only 30 months) was unprecedented in the industry for a development of Kuito’s magnitude.
* Compliant piled towers are bottom-founded (attached by piles driven into the substrate), offshore structures designed for cost-effective development in deepwater environments, typically in water depths ranging from 1,000 to 3,000 feet (approximately 300 to 900 meters). Compliant piled towers provide bottom-founded developments in these water depths at costs appreciably less than conventional structures due to reduced steel requirements. The towers are compliant (flexible) as they are able to mitigate the changing wind, wave and current conditions around the facility. The Benguela Belize tower is approximately 1,680 feet (512 meters) in height, and it is one of the tallest structures in the world.



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 significance of the Benguela, Belize, Lobito and Tomboco development project offshore Angola. 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 the results of the exploration program; inability or failure of the company’s joint-venture partners to fund their share of project expenditures; potential disruption or interruption of project activities, due to war, accidents, political events, civil unrest or severe weather; and general economic 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.

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