Chevron Announces Further Foundation Sales of Gorgon LNG to Japan

Chevron Australia signs Heads of Agreement for LNG sales to Chubu Electric

SAN RAMON, Calif., Nov. 21, 2005 -- Chevron Corporation (NYSE: CVX) today announced plans to secure further sales of liquefied natural gas (LNG) from the Chevron-led Gorgon Project to Japan, the world’s largest LNG consumer.

Chevron Australia Pty Ltd, a subsidiary of Chevron Corporation, has signed a Heads of Agreement (HOA) with Chubu Electric Co. Inc. for the purchase of 1.5 million tonnes per annum (MTPA) of Chevron’s share of Gorgon LNG over 25 years commencing in 2010. The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project.

The HOA was signed by Jay Johnson, managing director of Chevron Australia, and Shiro Mizutani, executive vice president and director of Chubu Electric.

Speaking at the signing ceremony, John Gass, president of Chevron Global Gas, said: "Chevron welcomes Chubu Electric as a foundation customer for the Gorgon Project. We have a long standing relationship with Chubu and this demonstrates the value Chevron can offer customers through its leading role in the full gas supply chain.

“The agreement highlights the momentum behind the Gorgon Project and is a significant step towards the further commercialization of the Gorgon Area gas resources,” said Gass.

Chevron Australia now has agreements in place that provide an opportunity to export more than 65 million tonnes of Australian LNG over 25 years from Chevron’s share of the Gorgon Project. Chevron continues to pursue opportunities in Asia and North America for the remaining volumes of Gorgon LNG.

The Gorgon Project, in which Chevron Australia holds a 50 percent operating interest, is to include an initial two-train 10 MTPA LNG facility and a planned domestic gas plant located on Barrow Island. The project participants include 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:
Chevron Australia signed a Heads of Agreement with Tokyo Gas Co. Ltd. on Oct. 27, 2005, regarding the purchase of 1.2 MTPA of Gorgon LNG beginning 2010 over a 25-year period.

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 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.

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