press release

Chevron and Chiyoda Establish OCR Marketing Promotion Alliance

SAN FRANCISCO, July 6, 1994 -- Chevron International Oil Company and Chiyoda Corporation today jointly announced a Marketing Promotion Alliance to support Chevron's licensing of its proprietary Onstream Catalyst Replacement (OCR) technology to refineries in Japan and Korea.

OCR technology represents the latest and most effective route to upgrading existing Residuum Desulfurization (RDS) units to enable them to run heavier, less expensive crudes. This technological breakthrough allows addition and removal of demetalization catalyst while the fixed bed RDS reactors remain continuously onstream.

Under the Alliance, Chevron and Chiyoda, along with Nomura Jimusho Inc., the long-time sales and marketing agent for Chevron technology and catalysts in Japan, will jointly provide information on OCR technology to refiners in Japan and Korea. Chevron will continue to be the sole licensor of OCR and RDS/Vacuum RDS technology. Chiyoda will continue to perform its historical role of engineering and construction contractor. Customers in Japan and Korea will be able to work with Chevron and Chiyoda as in the past, taking advantage of the longstanding experience, expertise and close technical cooperation developed by Chevron and Chiyoda.

Chiyoda has constructed most RDS units licensed by Chevron in Japan and the Pacific Rim. Both companies worked closely together in the construction of the world's first OCR unit at Idemitsu Kosan Company's (IKC) Aichi Refinery in Japan. The Aichi unit is now in its third year of successful operation.

Chevron and Chiyoda also worked together on the construction of the IKC OCR/RDS unit at Hokkaido, Japan, which will start up in the fall of 1994. Currently, Chevron and Chiyoda are working together on the addition of an OCR unit at Mitsubishi Oil Company's Mizushima, Japan, refinery. The unit is due to start up in 1995.

In May of 1994, Chiyoda, Chevron and Idemitsu Kosan Company received the Japanese Petroleum Institute Award for Technological Progress for the successful commercialization of OCR technology at IKC's Aichi Refinery. The award was based on the strong team efforts and technological innovation by IKC, Chiyoda and Chevron.

Updated: July 1994