New Facilities Expected to Significantly Increase Production from the Supergiant Field

SAN RAMON, Calif.--(BUSINESS WIRE)--Jan. 29, 2008--Chevron Corporation (NYSE:CVX) announced today that its affiliate Tengizchevroil LLP has started up new facilities as part of the first phase of its expansion at the Tengiz Field in Kazakhstan.

This initial expansion of 90,000 barrels per day brings Tengizchevroil's current capacity to a total of approximately 400,000 barrels per day.

Included in the startup is the Sour Gas Injection (SGI) project and the front end of the Second Generation Plant (SGP). SGI reinjects produced sour gas into the reservoir at very high pressures to boost production. SGP was brought up to about one-third of its full capacity and is currently separating the natural gas for injection while also stabilizing and sweetening the crude oil. Once fully operational, SGP is designed to also process sour gas into gas products and elemental sulfur.

The addition of full facilities is projected to further increase daily crude production capacity at Tengiz to 540,000 barrels. Start-up of full facilities is expected during the second half of 2008.

"The successful startup of the first phase of the expansion is a state-of-the-art technological achievement and a demonstration of our ability to execute next-generation, highly complex projects," said Guy Hollingsworth, president of Chevron Europe, Eurasia and Middle East Exploration and Production.

Once at full operating capacity, approximately one-third of the sour gas produced from the expansion is planned to be injected into the reservoir. The remaining volumes will be processed as commercial gas, propane, butane and sulfur.

"This multibillion-dollar SGI/SGP expansion of the world's deepest producing supergiant oil field is another step forward in partnering with Kazakhstan to develop the full potential of the country's vast energy resources," said Jay Johnson, managing director of Chevron's Eurasia business unit. "We will continue to grow and modernize the country's energy sector and generate economic prosperity."

Chevron has a 50 percent interest in Tengizchevroil. Other partners are KazMunaiGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; and LUKArco, 5 percent.

Chevron Corporation is one of the world's leading integrated energy companies. We have approximately 58,000 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 activities in Kazakhstan. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" 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; successful completion of the planned SGP and SGI projects; actions of competitors; the potential disruption or interruption of project activities 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); government-mandated changes in fiscal terms or restrictions on scope of company operations; general economic and political conditions; and the factors set forth under the heading "Risk Factors" on pages 31 and 32 of the company's 2006 Annual Report on Form 10-K. 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.

CONTACT:
Chevron Corporation
Kurt Glaubitz, +925-842-2561 (San Ramon)
Michael Barrett, +44 207 719 4463 (London)

SOURCE: Chevron Corporation