Chevron Announces $22.8 Billion Capital and Exploratory Budget for 2009

* Upstream spending estimated at $17.5 billion, reflecting an excellent queue of crude oil and natural gas projects
* Downstream budget of $4.3 billion includes outlays for a continued focus on reliability and flexibility of U.S. refineries

SAN RAMON, Calif., Jan. 29, 2009 – Chevron Corporation (NYSE: CVX) today announced a $22.8 billion capital and exploratory spending program for 2009, unchanged from the level of expenditures in 2008. Included in the 2009 program are $1.8 billion of expenditures by affiliates, which do not require cash outlays by Chevron’s consolidated companies.

“Our company’s financial strength enables the funding of attractive investments consistent with our long-term strategies,” said Chairman and CEO Dave O’Reilly.

O’Reilly said about 75 percent of the 2009 spending program is for upstream oil and gas exploration and production projects worldwide. Another 20 percent is associated with the company’s downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products.

“Much of our 2009 spending continues to be on large, multiyear projects aimed at increasing energy supplies to meet global demand and also improving operating efficiency and reliability,” O’Reilly added. “About 10 percent of the budget is for large, one-time payments related to upstream production concessions outside the United States.”

Highlights of the 2009 Capital and Exploratory Spending Program:

Chevron 2009 Planned Capital & Exploratory Expenditures | $ Billions
U.S. Upstream | $ 3.6
International Upstream | 13.9
Total Upstream | 17.5
U.S. Downstream | 2.0
International Downstream | 2.3
Total Downstream | 4.3
Chemicals and Other | 1.0
TOTAL (Including Chevron’s Share of Expenditures by Affiliated Companies) | $22.8
Expenditures by Affiliated Companies | (1.8)
Cash Expenditures by Chevron Consolidated Companies | $21.0

Upstream - Exploration and Production

Spending of $17.5 billion is planned for exploration, production and natural gas-related projects. A significant portion relates to development projects that build on the company’s successful and focused exploration results in recent years, including opportunities in the deepwater U.S. Gulf of Mexico, western Africa and the Gulf of Thailand. Funding also is earmarked for further appraisal and evaluation of other prospective areas in the world’s major hydrocarbon basins, including Northwest Australia.

“Our upstream investments are aimed at finding and developing oil and gas resources to increase production and help supply the energy needs of markets around the world,” said George Kirkland, Chevron’s executive vice president of Upstream and Gas. “Start-ups of major projects in 2009 are expected to include Tahiti in the Gulf of Mexico, Tombua-Landana offshore Angola and Frade offshore Brazil. We also anticipate significant production increases from recent start-ups at Agbami offshore Nigeria and Blind Faith in the Gulf of Mexico and from expansion activity at Tengiz in Kazakhstan.”

Major upstream spending in 2009 includes activities in the following areas:

* U.S. Gulf of Mexico – deepwater exploration and development, including Perdido and Jack- St. Malo.
* Brazil – development of the Frade Field.
* Nigeria – development of the Agbami and Usan deepwater fields.
* Angola – development of Block 14 assets, including Tombua-Landana, and construction of LNG facilities.
* Western Australia – development of Gorgon, Wheatstone and North West Shelf offshore natural gas resources, including LNG facilities.
* Thailand – development of the Platong Gas II project offshore Thailand.
* Indonesia – northern expansion of the Duri Field steamflood project.
* China – one-time payment and initial development of the Chuandongbei gas field.
* Middle East – one-time payment for concession extension and development in the Partitioned Neutral Zone of Saudi Arabia and Kuwait.

Downstream – Refining, Marketing and Transportation

Capital spending of $4.3 billion in 2009 is budgeted for global downstream operations, including $2.0 billion for projects in the United States. Included in the U.S. spending is $1.5 billion for improvements to the refinery network.

Downstream expenditures are aimed at enhancing the company’s ability to safely and reliably manufacture transportation fuels from a variety of feedstocks, increasing energy efficiency and providing environmental benefits.

Outlays in 2009 include projects in the company’s refineries in Mississippi and California. The company’s 50 percent-owned GS Caltex affiliate is also expected to continue development work on upgrading of its Yeosu refining complex in South Korea. In support of projects to commercialize the company’s large natural gas resource base, downstream expenditures will be made in 2009 on gas-to-liquids manufacturing facilities.
Chemicals and Other

Expenditures of approximately $1.0 billion in 2009 are budgeted for chemicals, technology, power generation and other corporate activities.

Chevron Corporation is one of the world’s leading integrated energy companies. We have approximately 60,000 employees and conduct business across the entire energy spectrum — exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about 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 Chevron’s 2009 capital and exploratory expenditures. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader 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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude-oil and natural-gas prices; refining, marketing and chemical margins; actions of competitors; timing of exploration expenses; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); the potential liability for remedial actions or assessments under existing or future environmental statutes, regulations and litigation; the potential liability resulting from pending or future litigation; the company’s acquisition or disposition of assets; gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on the scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 32 and 33 of the company’s 2007 Annual Report on Form 10-K/A. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed in this report also could have material adverse effects on forward-looking statements.