Chevron Announces Discovery in the Deepest Well Drilled

Total Depth is More Than 34,000 Feet.

SAN RAMON, Calif., Dec. 20, 2005 - Chevron Corporation (NYSE:CVX) today announced a significant new deepwater oil discovery, and the deepest well ever drilled in the U.S. Gulf of Mexico, at the Knotty Head Prospect located in Green Canyon block 512. The block is approximately 170 miles southeast of New Orleans.

The Knotty Head No. 1 discovery well is in approximately 3,500 feet of water and was drilled to a total depth of 34,189 feet (measured depth). The well encountered approximately 600 feet of net pay oil sand. Further drilling is planned to determine the extent of the discovery.

“This is another great addition to Chevron’s deepwater discoveries in the Gulf of Mexico,” said Ray Wilcox, Chevron’s North America Exploration and Production Company president. “Chevron’s deepwater technology is allowing us to continue to strengthen our presence in this key producing area.”

Paul Siegele, vice president of Chevron’s Gulf of Mexico Deepwater business unit said, “We are very pleased with the results of this well. It is the deepest well announced to date in the Gulf of Mexico.”

Earlier this year it was announced that the well had encountered more than 300 feet of apparent hydrocarbon pay based on measured-while-drilling logs. At that time, the well was at a depth of 29,670 feet.

Chevron owns a 25 percent interest in Green Canyon block 512. Other owners include Nexen Petroleum Offshore U.S.A. Inc., a wholly owned subsidiary of Nexen Inc., (25 percent), Anadarko Petroleum Corporation (25 percent), and BHP Billiton (25 percent). Nexen Petroleum Offshore U.S.A. Inc. is the operator.

Chevron is the largest overall leaseholder in the U.S. Gulf of Mexico and 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.

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 Knotty Head discovery. Words such as “expected” “planned” 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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