press release

$50 Million "Angola Partnership Initiative" Launched to Support Education, Training & Small Business Development

ChevronTexaco to Partner with Government of Angola, U.S. Agency for International Development and United Nations Development Programme

LUANDA, ANGOLA, Nov. 25, 2002 -- ChevronTexaco Corp., the United States Agency for International Development (USAID), and the United Nations Development Programme (UNDP), in cooperation with the Government of Angola, today announced the signing of memoranda of understanding (MOU) for the formation of two public-private partnerships as part of a $50 million overall initiative to support education, training, and small business development in Angola. The MOU's provide the framework for the partnerships that have the common goal of promoting sustainable economic and social growth in Angola.

At the signing ceremony in Luanda were ChevronTexaco Chairman and Chief Executive Officer David J. O'Reilly, USAID Mission Director in Angola, Robert Hellyer, Sirkka Korpela of UNDP and Dr. Severino de Morais, Vice Minister of Planning, representing the government of Angola. Also participating was John Gass, Managing Director of the Southern Africa Strategic Business Unit for ChevronTexaco Overseas Petroleum Inc.

Commenting on the partnerships, O'Reilly said, "As a company with a long and deep commitment to Angola, ChevronTexaco is proud to be the catalyst for this Angola Partnership Initiative. We believe that through these partnerships -- and others that we are able to develop in the coming months -- we can play a constructive role to spur economic development, promote security, and to assist in securing better lives for the people of Angola.

"Collaborative efforts in support of sustainable investments such as these, which build on the ideas embraced at the recent World Summit on Sustainable Development in Johannesburg, can make a profound and lasting difference," O'Reilly continued. "We commend our partners -- USAID and UNDP -- for their vision and commitment to Angola, and we look forward to the support and participation of the Angolan government in these important partnerships. At the same time, we recognize this is just a start, and we encourage additional public-private partnerships so we can expand the collective strengths and capabilities for the benefit of Angola."

Altogether, ChevronTexaco is committing a total of $25 million of its own funds to support these and other partnerships over a five-year period. It is anticipated that detailed agreements for the execution of these partnerships will shortly be finalized and implementation of programs will start next year. Some additional partnerships are already under discussion to provide expanded support for education and vocational training projects in Angola.

ChevronTexaco Partnership with U.S. Agency for International Development

Under the terms of the MOU between ChevronTexaco and USAID, this Enterprise Development Alliance will provide technical assistance and financial support to small enterprises in Angola with an emphasis on the agricultural and water sectors. In addition, this alliance will be structured to support education and training projects. ChevronTexaco and USAID will provide matching funds to support the alliance. The alliance will be open to other participants and an initial funding commitment of $20 million has been made.

In a statement about the partnership, Andrew Natsios, Administrator of the United States Agency for International Development said, "The international community has a historic opportunity to assist Angola after more than two decades of civil war. USAID's alliance with ChevronTexaco will help Angola's transition from a war-torn nation to one of stability and economic growth."

ChevronTexaco Partnership with United Nations Development Programme

The MOU signed by ChevronTexaco and UNDP will create a new privately managed Angola Enterprise fund which will be structured to also attract other private and public donors. The program, to be managed by the UNDP, will focus on vocational training and job creation for small and medium sized businesses in Angola. Matching funding commitments to this partnership are currently targeted at $10 million.

In a statement, UNDP Administrator Mark Malloch Brown said, "The developing world is critical to the future of big business, and the private sector is also critical to the future of the developing world. The Angola Enterprise Fund has the potential to provide jobs and incomes that will in turn help speed up recovery from the long and exhausting civil war. We hope the fund will set an example for how public-private partnerships can benefit the poorest in a very tangible way."

About ChevronTexaco

ChevronTexaco is active in more than 50 African nations and is sub-Sahara Africa's largest United States-based investor. The company's investments are not just in developing energy resources and creating jobs and revenues. The company also has awarded thousands of scholarships to students in colleges, universities and technical schools; built schools, clinics and housing; provided job training; funded small businesses and supported the fight against AIDS.

ChevronTexaco has been a presence in Angola since the 1930s, when Texaco-branded products were first marketed in the country. In 1958, Cabinda Gulf Oil Co. Ltd. -- ChevronTexaco's operating unit in Angola -- drilled the country's first onshore well. Today, ChevronTexaco ranks as Angola's largest petroleum producer, with a combined yield of approximately 600,000 barrels of oil a day, accounting for more than two-thirds of Angola's total production.

ChevronTexaco is a leader in the global energy business with wide-ranging activities in more than 180 countries. ChevronTexaco is the third-largest energy company in terms of global oil and gas reserves (more than 11 billion barrels of oil and gas equivalent) and fourth largest in global oil and natural gas production (2.7 million barrels of oil and gas equivalent per day). It has the capacity to refine more than 2 million barrels per day, sells more than 5 million barrels of fuel and products daily and owns or has interest in more than 25,000 retail outlets under Chevron, Texaco and Caltex brands.

About U.S. Agency for International Development

USAID established an office in Angola in 1996 and has been the lead country donor providing humanitarian, emergency food and development assistance. Under its current program, USAID supports activities to enhance household food security, strengthen constituencies promoting better governance, and improve health practice through increased use of maternal/child health and HIV/AIDS services and products. In addition, USAID continues to provide emergency support to the most vulnerable in Angola.

The Global Development Alliance (GDA) Pillar is USAID's new business model. USAID is currently working on over 75 public-private alliances involving all sectors of the agency. The GDA was established because of the change in resources flows from the United States to the developing world. Thirty years ago, 70 percent of the capital flows to the developing world from the United States came from the US government. Today, the situation has reversed itself: US government aid accounts for only 20 percent of capital flowing to the developing world. The rest comes from private sources -- remittances, foundations, universities, corporations, and individuals. The rest comes from private sources -- remittances, foundations, universities, corporations, and individuals. The GDA is also premised upon the fact that the private sector brings more than resources. Increasingly, companies, foundations, individuals and others are putting technology, intellectual property, managerial expertise, and creative approaches in the service of international development.

USAID is the U.S. Government agency that has provided economic development assistance and humanitarian assistance worldwide for more than 40 years. With field missions in 72 countries and programs in more than 100 countries, USAID's work both advances our Nation's foreign policy goals and provides opportunity and hope to people around the world.

About United Nations Development Programme

The UNDP is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. The UNDP is on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and its wide range of partners.

Updated: November 2002