press release

Australia Selected to Supply China

THIRD PARTY RELEASE

This is news concerning ChevronTexaco but issued by a third party, Australia LNG Pty Ltd. (ALNG), and archived here for record purpose.

PEOPLE'S REPUBLIC OF CHINA, Aug. 8, 2002 -- The People's Republic of China has selected Australia's North West Shelf Venture as the preferred supplier of three million tonnes of LNG a year over 25 years to the Guangdong LNG Project in southern China worth up to A$25 billion in export earnings over the period.

Subject to finalising commercial arrangements, and approval by the Chinese Government of the Guangdong LNG Project Feasibility Study, supply will begin from the North West Shelf Venture in 2005.

Bidding for the supply contract was led by Australia LNG Pty Ltd (ALNG), the North West Shelf Venture's marketing group for China. The North West Shelf Venture was one of three bidders on the short-list selected from an original list of seven.

The President of ALNG, Arthur Dixon, said the Chinese decision marked another major milestone in the success of the North West Shelf Venture and Australia as a world-class LNG exporter.

"We are delighted that the Guangdong LNG Project has selected the North West Shelf Venture to supply its total Phase 1 requirements. Selection carries responsibility to play our part in the development of China's enormously important first LNG project," Mr. Dixon said.

"It is also a further endorsement of the North West Shelf Venture as a competitive and reliable supplier of LNG. We look forward to building a long-term, mutually beneficial relationship with our China customers."

Mr. Dixon praised the tremendous support given to the ALNG bid by the Western Australian and Federal Governments.

"We thank the State and Federal governments for their sustained support and encouragement over the past few years and in particular during the recent bid process," he said.

As a result of China's decision, and after the execution of the LNG sale and purchase agreements, China National Offshore Oil Company (CNOOC) will have the opportunity to acquire a participating interest in North West Shelf Venture reserves and production that will supply gas to Guangdong. A proposal has been made that will allow CNOOC to become a full member of the joint venture that will be created to facilitate the LNG supply to China.

It is also proposed that the North West Shelf Venture and the Chinese shipping companies, COSCO and China Merchants, will establish ship owning and ship management companies for LNG transport to Guangdong. Two to three LNG ships will be required to service the China trade route.

The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.

Updated: August 2002