Press Release

11/01/01
ChevronTexaco, Partners Announce First Oil Production From the Next Phase Of Kuito Development
SAN FRANCISCO, Nov 1, 2001 /PRNewswire via COMTEX/ -- ChevronTexaco (NYSE: CVX), as operator of offshore Angola Block 14, today announced that oil production has begun from the deepwater Kuito Field Phase 1C development. The new phase has added more than 30,000 barrels of oil per day bringing current daily production from the Kuito Field to approximately 85,000 barrels of oil. Average daily production for Kuito in 2002 is expected to be approximately 66,000 barrels of oil.

"Angola's deepwater resources have proved to be a tremendous growth asset to ChevronTexaco," said Peter Robertson, president of ChevronTexaco Overseas Petroleum. "The Kuito Field development is but one of a number of exciting deepwater projects now taking place in Block 14," Robertson added, pointing out that engineering, procurement, construction and installation bid packages are being finalized for the Benguela and Belize fields. He also noted that detailed reservoir and development studies are under way for the recently discovered Lobito and Tombua oil fields.

"This is a significant milestone for the continuing development of the Kuito Field, which has already yielded over 39 million barrels of oil," said John Gass, managing director, Cabinda Gulf Oil Co. Ltd., ChevronTexaco's operating unit in Angola. "Kuito's phased approach has minimized the project cycle time while narrowing subsurface uncertainties associated with any new field development. The initial phases provided valuable production and operational data to optimize subsequent well locations and support facility enhancement decisions."

Gass also noted that a number of the components (subsea manifold, midwater arches and gravity bases) for Kuito Phase 1C were manufactured locally in Angola.

"Bringing economic opportunities to our host communities is a key tenet of The ChevronTexaco Way, and I'm especially proud of our continued business partnership with the Lobito Fabrication Yard. Thus far, ChevronTexaco has contracted for projects valued at more than $50 million for fabrication and construction work at the Lobito facility," said Gass.

Block 14 is operated by Cabinda Gulf Oil Co., which holds a 31 percent interest in the concession. Sonangol Pesquisa e Producao S.A.R.L., Agip Angola Exploration BV, and TotalFinaElf E&P Angola each hold a 20 percent interest; Petrogal Exploracao holds the remaining 9 percent interest.

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 relating to this project, including expected daily oil production from the Kuito Field. These are based on management's current expectations, estimates and projections and are not guarantees. Actual outcomes and results could differ materially from what is expressed or forecasted in these forward-looking statements.