SAN RAMON, Calif., June 26, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Chevron Corporation (NYSE: CVX) announced today that its subsidiary Cabinda Gulf Oil Company Ltd. (CABGOC) commenced oil production from the Lobito Field, in deepwater Block 14, located offshore Angola.

The Benguela, Belize, Lobito and Tomboco fields form the BBLT Development, one of Chevron's "Big 5" projects. Chevron announced first oil from the Benguela Belize compliant piled tower in January. First oil from the Lobito-Tomboco subsea project was achieved on June 7, 2006.

"Benguela Belize Lobito Tomboco was completed ahead of schedule, on budget and -- most importantly -- in a safe manner," said John Watson, President, Chevron International Exploration and Production. "BBLT is the first of Chevron's 'Big 5' projects to come onstream and demonstrates the company's ability to lead the industry in the selection and execution of major capital projects."

The BBLT Development, located 50 miles (80 kilometers) offshore in 1,300 feet (396 meters) of water, is being developed in two phases. Phase 2 -- Lobito-Tomboco -- involved the construction and installation of three subsea centers, each with a capability to handle nine subsea wells, tied back to the Benguela-Belize drilling and production platform and compliant tower. In December 2005, the Benguela-Belize drilling and production platform was awarded the "Project of the Year" by the Offshore Energy Association.

"With this addition, the project is currently producing more than 88,000 barrels of oil per day from a total of 4 wells (averaging more than 22,000 per well), and will continue to ramp-up as additional wells and fields are brought on line over the next two years. The project's daily peak production is expected to reach approximately 200,000 barrels of oil per day," said Chevron's Managing Director of the Southern Africa Strategic Business Unit, Jim Blackwell.

The Lobito-Tomboco facilities were constructed in Angola, Argentina, Europe and the United States. The project involved a large component of Angolan local content, with the establishment of a base for pipe handling, fabrication and spooling and a pipe coating plant in Luanda, as well as manifold and umbilical manufacture in Lobito, Angola.

Cabinda Gulf Oil Company Limited is the Operator of the Block 14 Contractor Group, which is comprised of the following companies:

Cabinda Gulf Oil Company Ltd. (31%)
Sonangol Pesquisa & Producao, S.A.R.L. (20%)
ENI ANGOLA EXPLORATION B.V. (20%)
TOTAL E & P Angola (20%)
GALP-Exploracao e Producao (9%)

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 BBLT Development in Angola's Block 14 Concession. 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 company's exploration and development programs; 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, acts of terrorism, 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 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.

SOURCE Chevron

Fernando Paiva, Luanda, +244-222-692-600, ext. 1676, or Filomena Lisboa, Luanda, +244-222-692-600, ext. 1359, or Donald Campbell, San Ramon, +1-925-842-2589, all of Chevron

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