Chevron Announces First Oil Production from Agbami Field

07/31/08

Offshore Nigeria Field Expected to Reach 250,000 Barrels per Day Production End of Next Year

SAN RAMON, Calif.--(BUSINESS WIRE)--July 31, 2008--Chevron Corporation (NYSE:CVX) today announced that its Nigerian affiliate, Star Deep Water Petroleum Ltd, has commenced crude oil production from the Agbami Field, located offshore Nigeria.

First oil from the Agbami Field was achieved on July 29, 2008, from a floating production, storage and offloading (FPSO) vessel. Initial production from the Agbami Field is expected to be more than 100,000 barrels per day and is projected to increase to 250,000 barrels of crude oil and natural gas liquids per day by the end of 2009. The Agbami field, discovered in 1998, is the largest deepwater discovery in Nigeria and is estimated to hold potentially recoverable volumes of 900 million barrels. Chevron is the operator and has a 68.2 percent interest under the unit agreement.

"Chevron and our partners have reached an exciting milestone for a major project 10 years in the making. Production from Agbami will now bring new energy supplies to the world market and help provide long term, sustainable returns to our shareholders," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production. "Agbami is a world-class project, and I'm particularly proud that Agbami represents the industry's largest ever support of Nigerian content."

Fred Nelson, Managing Director of Chevron Nigeria/Mid-Africa Strategic Business Unit, added: "We congratulate our partners -- the Nigerian National Petroleum Corporation, Famfa Oil Limited, Petrobras and Statoil -- for this remarkable achievement. We also thank the Nigerian government and our partners for their strong support, which has led to the delivery of outstanding results."

"We value the contributions made by the project team, contractors and suppliers who have made the start-up a reality. Chevron and its partners have now delivered a major oil project that will help to ensure a new source of global energy supply and also provide new jobs and economic growth to Nigeria. The Agbami project sets a new benchmark for Nigerian local content, including the largest module ever fabricated in Nigeria."

Participants:

Star Deep Water Petroleum Limited, an affiliate of Chevron Corporation, is the operator of the Agbami Unit, which comprises the following companies:

Concessionaires:

Partners:

Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops and commercializes 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 activities in Nigeria. Words such as "anticipates," "expects," "projects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" 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 demand for and supply of crude oil and natural gas; results of additional testing; selection and successful execution of additional development plans; actions of competitors; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on the scope of the company's operations; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; 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.

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," "oil-equivalent resources," "oil in place," "potentially recoverable volumes," "recoverable reserves," and "recoverable resources," among others, may be used in this press release to describe certain oil and gas properties that are not permitted to be used in filings with the SEC.

CONTACT:
Chevron Corporation
Scott Walker, +1-832-854-2984 (Houston)
Kurt Glaubitz, +1-925-842-2561 (San Ramon)

SOURCE: Chevron Corporation

Press Release