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SAN RAMON, Calif., Mar 11, 2011 – Chevron has reached an agreement with Valero Energy Corporation to sell Chevron Limited, the entity that holds the 220,000 barrel per day Pembroke Refinery and other downstream assets in the United Kingdom and Ireland. The sale price is $730 million, plus an additional payment estimated to be $1 billion for Chevron Limited's inventory and other items. The agreement is subject to customary regulatory approvals and is expected to be completed during the second half of 2011. 

"We are pleased with the value generated from this transaction," said Mike Wirth, executive vice president, Chevron Downstream & Chemicals. "This sale is consistent with our global strategy to focus our business on markets where we are well-positioned to deliver strong returns for our shareholders."

Aside from the Pembroke facility, Chevron Limited also holds approximately 1,000 Texaco-branded retail service stations in the UK and Ireland, a commercial and industrial fuels business, seven equity-owned terminals, shareholdings in four pipelines, eight aviation facilities and related support and trading operations.

Chevron will retain its upstream, lubricants and Oronite additives businesses in Europe, as well as its aviation business in Sweden, Greece and the Benelux.

"We're concentrating our downstream portfolio primarily in North America and the Asia-Pacific region," said Wirth, "markets where we enjoy our greatest competitive strength and opportunities for growth."

Chevron recently reached a sales agreement for most of its downstream assets in Spain. Since 2010, the company has agreed to sell downstream assets in more than 20 other countries, mostly fuels marketing businesses in the Caribbean and southern Africa. These transactions are expected to be concluded during 2011 as necessary regulatory approvals are received. 

Chevron is soliciting bids for certain operations in the Caribbean and select Central America markets. Chevron will continue current downstream operations in Colombia, El Salvador, Guatemala, Honduras, Panama, Mexico and Brazil.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

This news release contains forward-looking statements about the planned sale of Chevron's Pembroke refinery and retail fuel and aviation marketing businesses in the United Kingdom and Ireland. 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 length of time required to complete the sale; the results of due diligence activities by the companies; successfully securing the necessary regulatory approvals; and general economic and political 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.