press release

Chevron Press Release - Chevron And Maraven Sign Agreement To Evaluate Possible Venture

SAN FRANCISCO, May 6, 1994 -- Chevron announced that it has entered into a joint study agreement with Maraven, S.A., an affiliate of Petrleos de Venezuela, S.A. (PDVSA), the national petroleum company of Venezuela, to evaluate the feasibility of forming a Joint Association between the two companies to produce and process extra-heavy crude oil from Venezuela's Boscan Field.

The study will involve Maraven, Chevron Overseas Petroleum Inc., and Chevron U.S.A. Products Company's AsphDivision. It will focus on the feasibility of Chevron and Maraven jointly producing Boscan extra-heavy crude oil for use in Chevron's U.S. asphrefining and marketing network. The study also will examine the economics of upgrading Boscan crude in Venezuela.

In October 1993, Chevron U.S.A. Products Company solicited offers to sell some of its asphassets. In February, the company announced that it would retain its assets on the East Coast and in the Pacific Northwest in order to explore an opportunity to enhance the profitability of those businesses.

"Boscan crude oil is an excellent asphfeedstock," explained Richard Matzke, President of Chevron Overseas Petroleum. "Bringing Boscan crude oil to Chevron's U.S. asphoperations could present a very attractive opportunity and excellent synergy between our operations and Maraven's."

Maraven currently produces approximately 60,000 barrels of crude oil per day from the Boscan Field, located in the Maracaibo Basin of western Venezuela. The 48-year-old field holds proved reserves of approximately 1.6 billion barrels.

Among those attending the signing ceremony for the study agreement, which was signed today in Caracas, were Maraven Vice President Gustavo Gabaldn; Maraven Director Simon Diaz; Rob Lagaay, Managing Director of Chevron Overseas Petroleum's Latin America Business Unit; and Jim Polk, General Manager of Chevron U.S.A. Products Company's AsphDivision.

Updated: May 1994