press release

Chevron and Kyushu Electric Sign LNG Deal

SAN RAMON, Calif., January 24, 2011 – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA) with Kyushu Electric Power Co. for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon Project.

Under the binding agreement, Kyushu Electric will receive 0.3 million tons per annum (MTPA) of LNG from the Gorgon Project for up to 20 years beginning in 2015.

 "We are pleased to have reached this milestone with Kyushu Electric, one of the leading companies in the world's largest LNG market, and we look forward to expanding this relationship in the future," said John Gass, president, Chevron Global Gas. Kyushu Electric and Chevron Australia also have existing Heads of Agreements in relation to LNG and equity sales from Chevron's Wheatstone Project.

The Kyushu agreement was also welcomed by Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Company. "Both the Gorgon and Wheatstone projects are positioned to meet the growing demand for natural gas in the Asia-Pacific region. Gorgon is more than a year into construction and remains on track to produce first gas in 2014. We expect to make a final investment decision on Wheatstone in 2011."

Chevron is the operator of the Gorgon Project and has an approximate 47 percent interest. 

The initial Gorgon Project development, in northwestern Australia, will include a three-train, 15 MTPA LNG facility and a domestic gas plant.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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 press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," “schedules,” "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press 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: January 2011