press release

Chevron And Mitsui Award Kawasaki Heavy Industries Contract


SAN FRANCISCO, May 31, 2000 -- Chevron Corp. and Mitsui & Co. Ltd. today announced through a joint venture company, a shipbuilding contract with Kawasaki Heavy Industries, Ltd. of Japan. The contract calls for construction of two 82,200 cubic meter Liquefied Petroleum Gas (LPG) carriers, with delivery expected during the last quarters of 2001 and 2002, respectively. Financial details of the contract were not disclosed.

The vessels will be placed on long-term time charter to Dynegy Global Liquids, Inc., a subsidiary of Dynegy Inc., a marketer of energy products and services and a leader in the LPG transportation business. Operated by Chevron, the carriers will enhance Dynegy' s ability to move large volumes of LPG at competitive market rates.

Tom Moore, president of Chevron Shipping Co., said, "These new vessels represent the continuing alignment of Chevron's business strategies with Dynegy. We expect this project will position Dynegy to continue its recent growth in the LPG transportation market and Chevron Shipping is proud to play a key role in that effort. This project also represents the continuation of a successful partnering relationship with Mitsui in the acquisition of quality tonnage for our customers' marine transportation needs."

A key Mitsui representative said, "We are very proud of this project which comes as a result of the tireless efforts of all involved, including two leading financial institutions, Credit Agricole/Indosuez and ING Bank as financiers."

The vessels will become part of the world's largest class of LPG ships known as "Very Large Gas Carriers" or VLGCs, and with a laden speed exceeding 17 knots, will transport volumes of propane or butane quickly and efficiently to global markets. Built to include the latest in LPG construction technology, the vessels will also be configured to trade to either eastern or western hemisphere terminals.

Note to editors:

Chevron Corp. has a 28 percent ownership interest in Dynegy Inc.

Updated: May 2000