press release

Chevron Press Release - Chevron Acquires Exploration Interests in Republic Of Congo

SAN FRANCISCO, Nov. 1, 1994 -- Chevron announced today that it has signed an agreement to acquire a 22.5-percent interest in the Haute Mer License and in the N'Kossa Exploitation Permit offshore the Republic of Congo.

Under the terms of the agreement recently approved by the Congolese government, Chevron Overseas (Congo) Limited, a subsidiary of Chevron Corporation, will join a partnership with Elf Congo (operator; 62.5 percent interest) and the Congolese state oil company, Hydro-Congo (15 percent interest) to conduct exploration and development activities in both the Haute Mer and N'Kossa blocks.

"For Chevron, this acquisition adds significant reserves and exploration potential to our West African base," said Richard Matzke, president of Chevron Overseas Petroleum Inc. "We are very pleased with these acquisitions because they will provide the missing link in our otherwise unbroken offshore producing trend -- from Zaire, where we produce about 18,000 barrels a day, to Cabinda where production averages 325,000 barrels per day, to our joint venture with Agip in the Kitina field, currently under development in central offshore Congo," Matzke said.

The N'Kossa development project, begun by Elf in 1993, will consist of two producing platforms connected to a floating barge containing processing facilities. Crude oil and liquified petroleum gas (LPG) will be loaded into tankers for export. The project is expected to cost about $1.5 billion (U.S.), with first oil production in mid-1996 at a rate between 80,000 and 90,000 barrels per day. Peak production of between 110,000 and 120,000 barrels per day should be achieved in 1998.

Activities in the Haute Mer License will resume in 1995 with the drilling of an exploratory well.

Chevron Overseas (Congo) Ltd. plans to open an office in Pointe Noire within the next three months. Chevron companies have been operating in the Republic of Congo since 1988. A farm-in with Agip in 1991 resulted in the discovery of the Kitina oil field in the Marine VII offshore block, located about 41 kilometers (26 miles) northwest of the N'Kossa oil field.

Updated: November 1994