press release

Chevron Press Release - Caspian Pipeline Reaches Another Milestone

Consortium celebrates commencement of "line fill"

ATYRAU, Kazakhstan, March 26, 2001 -- Chevron Corp. today announced the Caspian Pipeline Consortium (CPC) reached an important milestone as it began "line fill" today during a ceremony at the CPC pump station at Atyrau. The prime minister of Kazakhstan, Kasymzhomart Tokaev, opened the valve that sent the first Kazakh oil on its 900-mile (1,500 kilometer) journey to CPC's marine terminal north of Novorossiysk on the Black Sea.

Chevron has described the export pipeline as important to oil fields in the region, including one of the world's largest, Tengiz Field, with estimated recoverable reserves of 6 billion to 9 billion barrels. CPC will carry Tengiz crude and also transport oil from other Kazakh and Russian fields.

"This is another remarkable achievement in this bellwether project. CPC has proven yet again just what can be accomplished here," said Chevron Vice Chairman Richard Matzke. "With the wholehearted support and goodwill of the governments of Kazakhstan and Russia, CPC will soon complete a world class project on schedule and on budget, while fully meeting the most demanding technical and environmental requirements."

Russian Deputy Minister of Energy Vladimir Stanev attended the ceremony, as did foreign diplomats.

The 10 international companies financing the $2.6 billion cost of the initial phase of the CPC pipeline include companies from Kazakhstan, Russia, the United States and Europe. By year-end, the initial phase of the pipeline will have an export capacity of 28 million tons of oil per year (approximately 600,000 barrels per day). With upgrades, the ultimate capacity of the pipeline is 67 million tons of oil per year (1.5 million barrels of oil per day).

"The U.S. government has been a consistent supporter of CPC and, of course, nearly 50 percent of the cost of the project is being funded by American companies. CPC's completion in a few months time will be a tremendous boost to regional development," said Peter Robertson, president of Chevron Overseas Petroleum Inc.

CPC is also preparing for its mid-year start up. Each shipper in the Caspian Pipeline Consortium is responsible for shipping its own volumes from the pipeline. Tom Winterton, general director of Tengizchevroil, said, "I've been very pleased with the continuing close cooperation between Tengizchevroil and CPC in advancing our mutual interests."

Note to editors:

Equity interest in the Caspian Pipeline Consortium is allocated as follows:

  • Russian Federation (24 percent)
  • Republic of Kazakhstan (19 percent)
  • The Sultanate of Oman (7 percent)
  • Chevron Caspian Pipeline Consortium Co. (15 percent)
  • LUKARCO B.V. (12.5 percent)
  • Rosneft-Shell Caspian Ventures Ltd. (7.5 percent)
  • Mobil Caspian Pipeline Co. (7.5 percent)
  • Agip International (N.A.) N.V. (2 percent)
  • BG Overseas Holdings Ltd. (2 percent)
  • Kazakhstan Pipeline Ventures LLC (1.75 percent)
  • Oryx Caspian Pipeline LLC (1.75 percent).

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 release are forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections. The statements included in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. These include potential changes to, or delays in, work and repair schedules. Actual outcomes and results could differ materially from what is expressed or forecasted in such forward-looking statements. References to "estimated recoverable reserves" are with respect to oil and gas reserves that are recoverable using all known primary and enhanced recovery methods over the life of the field. This is in contrast to reporting of reserve quantities with the Securities and Exchange Commission (SEC). Reporting of reserve quantities in filings with the SEC is limited to "proved reserves" -- quantities of oil and gas reserves that the company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Ultimate recovery of oil and gas quantities could differ materially from estimates. Chevron proved reserves information filed with the SEC is contained in our Form 10-K available from: Chevron Corporation; 575 Market Street, San Francisco, CA 94105. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Updated: March 2001