SAN RAMON, Calif., Jul 21, 2003 -- ChevronTexaco Corp. (NYSE: CVX) announced today the sale of its indirect, wholly owned affiliate Chevron Niugini Ltd. (CNGL) and all of its assets in Papua New Guinea to Oil Search Limited for $96.6 million.

The transaction includes ChevronTexaco's oil and gas interests in the Kutubu, Moran, Gobe Main and South East Gobe oil fields in Papua New Guinea.

Commenting on the sale, Peter Robertson, vice chairman of ChevronTexaco Corp., said, "Our decision to conclude business in Papua New Guinea was a result of the company's ongoing review of its global portfolio. While the Papua New Guinea assets do not fit our future strategy, we take great pride in the outstanding relationship the company has enjoyed with the people and government of Papua New Guinea and in the recognition we've received for our environmental record and our sustainable development performance."

The sale announced today is subject to Papua New Guinea Government approvals and is expected to close in the fourth quarter of 2003.

Cautionary Statement Relevant to Forward-Looking Information for the

Purpose of "Safe Harbor" Provisions of the Private Securities Litigation

Reform Act of 1995.

This news release contains forward-looking statements about the planned sale of ChevronTexaco's interests in Papua New Guinea. The statements are based on 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 identification of a buyer and timing and terms of the sale of the company's interests; local and general economic conditions; and local political events. 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, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE ChevronTexaco Corp.