press release

BTC Pipeline Delivers First Cargo of Azerbaijani Crude Oil to World Markets

SAN RAMON, Calif., June 9, 2006 -- The Baku-Tbilisi-Ceyhan (BTC) pipeline today achieved a historic milestone with the delivery of its first cargo of crude oil to world markets.

The inaugural shipment of about 600,000 barrels of crude oil was delivered by tanker to Savona, Italy, marking the start of export of Azerbaijan's crude oil via the BTC oil pipeline. The crude oil initially will come from the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijani sector of the Caspian Sea and is expected to be joined by other volumes in the future, including production from across the Caspian region.

"BTC is a key strategic asset for Chevron and adds to our strong position in the Caspian region," said John Watson, president, Chevron International Exploration and Production.

Chevron has an 8.9 percent interest in the 1,094-mile (1,762-km) pipeline that crosses Azerbaijan, Georgia and Turkey and holds a 10.3 percent working interest in the Azerbaijan International Operating Company (AIOC) that is producing from and developing the ACG field. The $4.5 billion pipeline has a crude oil capacity of 1 million barrels per day and is expected to accommodate the majority of AIOC production.

The start of BTC operations follows the complete testing, commissioning and filling of the BTC pipeline along its entire route, starting in May last year from the Sangachal Terminal on the Caspian coast near Baku to the Ceyhan Terminal on the Mediterranean coast of Turkey. A total of 10 million barrels of crude oil, which came from the ACG field, was required to fill the pipeline.

"BTC provides an important new means of transportation for growing production throughout the region," said Guy Hollingsworth, managing director of Chevron's Eurasia Business Unit.

The new pipeline is expected to bring significant benefits to the Caspian region. By opening another transit route for the region's growing production, BTC will create substantial revenues for the transit countries and also help to strengthen economic and political links between Azerbaijan, Georgia, Turkey and the West.

Chevron is also a participant in another regional pipeline: the Caspian Pipeline Consortium, a 935-mile (1,505-km) crude oil export pipeline from the Tengiz Field in Kazakhstan to the Black Sea port of Novorossiysk in Russia. Chevron has a 15 percent interest in CPC, which provides a critical export route for crude oil from Kazakhstan.

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 Chevron is available at

Editor's Note:

The pipeline uses 46/42/34-inch diameter pipe. It has eight pump stations and 98 valve stations across the three transit countries. The pipeline crosses more than 1,500 rivers and climbs to a high point of 9,186 feet (2,700 m) before returning to sea level at Ceyhan.

The BTC Company shareholders are: BP (30.1%, operator), AzBTC (25.00%), Chevron (8.90%), Statoil (8.71%), TPAO (6.53%), ENI (5.00%), Total (5.00%), Itochu (3.40%), INPEX (2.50%), ConocoPhillips (2.50%) and Amerada Hess (2.36%).


This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates, " "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this 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.

Updated: June 2006