press release

Chevron Press Release - Chevron And Partners Approve Funding For Redevelopment

CARACAS, Venezuela, Feb. 5, 1998 -- In a demonstration of the international oil industry's continued confidence in and commitment to Venezuela, the LL-652 consortium has submitted plans to Petroleos de Venezuela (PDVSA) to begin its investment in the oil field. Chevron, Statoil, Phillips Petroleum, and Atlantic Richfield approved a $400 million budget to fund the first phase of redevelopment of LL-652, located in Lake Maracaibo.

Over the life of the 20-year Operating Services Agreement, the total development plan is estimated at approximately $2 billion to tap recoverable reserves of more than 500 million barrels.

"The LL-652 oil field offers tremendous value for our consortium and Venezuela, and the consortium is looking forward to beginning its field operations in May," said David Steele-Figueredo, president of Chevron for Latin America, the operator. "We expect to increase production from the current 10,000 barrels per day to 115,000 bpd within the next 10 years."

The international consortium obtained the right to redevelop the LL-652 oil field during Venezuela's highly successful third competitive bid round in June 1997. The oil field, discovered in 1953, produces a light (36-degree, API gravity) crude oil.

The first phase will include installation of facilities and wells that will begin repressurizing the reservoir and collection of additional data for enhanced recovery to optimize production.

Chevron and Statoil both have a 30 percent interest in the field, with Phillips Petroleum and Atlantic Richfield each holding a 20 percent interest.

Updated: February 1998