Chevron Successful in the U.K.'s 23rd Licensing Round

09/09/05

SAN RAMON, Calif. and ABERDEEN, Scotland, Sept. 9 /PRNewswire-FirstCall/ -- Chevron North Sea Ltd., a subsidiary of Chevron Corp. (NYSE: CVX), was the successful bidder and awarded equity in eight exploration blocks of strategic interest to the company under the 23rd United Kingdom Offshore Licensing Round.

Blocks 205/2 (part), 212/30, 213/16 and 213/17 are located near the recent significant Rosebank/Locknagar offshore discovery approximately 78 miles (126 km) west of Shetland. Chevron will be the operator with a 40 percent equity position. Other block joint-venture partners are Statoil, 30 percent, OMV (UK) Ltd., 20 percent and DONG UK Ltd., 10 percent.

Blocks 215/30, 216/26 and 216/27 are located near the Capercaille prospect west of Shetland. Chevron will be the operator with a 65 percent equity position. Other block joint-venture partners are Maersk Oil U.K. Ltd., 25 percent and Talisman Energy (UK) Ltd., 10 percent.

Block 13/22d within the inner Moray Firth is located south of Chevron's Captain Field operations. Chevron will be the operator with 70 percent equity interest, and is partnered with the Korean National Oil Company with a 30 percent interest.

The additional acreage strategically builds on the momentum of Chevron's recent exploration successes at Rosebank/Lochnagar and efforts in other frontier locations of the Faroes-Shetland Basin. The company is also able to build on its position in the multiphased development of the Captain Field.

John Watson, president of Chevron International Exploration and Production Co., said, "Our success in the 23rd U.K. offshore licensing round shows Chevron's continued commitment to building a focused portfolio of key exploration prospects worldwide and to further strengthen our North Sea position."

Gary Luquette, president and managing director for Chevron's Upstream Europe business unit, said, "We are very pleased with our awards under the 23rd round, which are located around current acreage and assets: Rosebank/Lochnagar, Capercaille and the Moray Firth. The award of these blocks enhances our strong position in the U.K. continental shelf frontier areas. In addition, the block adjacent to the Captain Field increases our holdings in a core producing area and adds development prospects for the medium and long term."

Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on the company 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 contain forward-looking statements about Chevron's exploration position in the North Sea. 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. You should not place undue reliance on these forward-looking statements. 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.

    Notes to Editor:

     Joint-Venture Partners
     Blocks 205/2 (part), 212/30 and 213/16 & 17
     Chevron North Sea Ltd.        40% (Operator)
     Statoil (UK) Ltd.             30%
     OMV (UK) Ltd.                 20%
     DONG (UK) Ltd.                10%

     Joint-Venture Partners
     Blocks 215/30, 216/26 and 216/27
     Chevron North Sea Ltd.        65% (Operator)
     Maersk Oil (UK) Ltd.          25%
     Talisman Energy (UK) Ltd.     10%

     Joint-Venture Partners
     Blocks 13/22d
     Chevron North Sea Ltd.        70% (Operator)
     Korean National Oil Corp.     30%

    Captain Field

Chevron Upstream Europe (through Chevron Captain Co.) is the operator of the Captain Field, located on the edge of the outer Moray Firth. Captain is a phased development, with the first phase (Area A) comprising a wellhead protector platform linked to a floating production, storage and offloading vessel.

The second phase developed the field's eastern reservoirs (Area B), adding a second platform housing processing facilities, bridge-linked to the first, and a subsea template manifold linked by a 2.8-mile (4.5-km) suite of pipelines.

The third development phase of the Captain Field is well under way. This phase will develop the eastern part of the field through two subsea satellite production wells tied in to a subsea manifold. First oil from Captain C is expected in the second quarter of 2006.

Rosebank/Lochnagar

Located in Block 213/27Z, in 3,600 feet (1,100 m) of water and completed on Aug. 30, 2004, encountered two oil and gas accumulations for a total net pay of 169 feet (52 m) with oil quality ranging from 27 to 36 degrees API. Nonassociated gas was also encountered in the shallower reservoir. The well, which was not tested, has been plugged and abandoned at a total depth of 12,153 feet (approximately 3,700 m). Further drilling, using the Transocean Rather rig, will be carried out in 1st/2nd quarter 2006 to fully appraise the find.

SOURCE Chevron Corporation

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