press release

Chevron Press Release - Chevron And Partners Hit All Time High For Angola Offshore Production

SAN FRANCISCO, Dec. 14, 1998 -- Chevron, on behalf of its partners in Angolas Block 0 Cabinda Association, said it reached record production of 510,000 barrels of crude oil per day from its operations located offshore in Angolas Cabinda province.

Were tremendously pleased with this achievement, not only because it represents a significant milestone for the Cabinda Association, but also because it demonstrates the associations long-term commitment to Angolas economic growth, said Mark Puckett, managing director of Chevrons Cabinda Gulf Oil Co., operator of the concession.

Puckett attributed the increasing production and operational successes to dedicated work of our employees and of our partners, Sonangol, Agip Angola and Elf, and noted that through the associations joint efforts, we expect to increase production to a level of 600,000 barrels per day by year 2001.

In addition to an ongoing reservoir management program, Chevrons production milestone resulted from the commissioning of new wells in the Nemba field, and the recent completion and development of the Lomba field. Combined production from these two fields -- located in Area B of Block 0 -- is expected to exceed 100,000 barrels of oil per day by year-end.

Richard Matzke, president of Chevron Overseas Petroleum Inc., and a director of Chevron Corp., said Chevron plans to invest about $4 billion in Angola over the next five years. The investment program will result in new jobs, increased technology transfer, and business development opportunities for Angolan companies.

Chevron holds 39.2 percent interest; Sociedade Nacional de Combusteiveis de Angola (SONANGOL), the national oil company, has a 41 percent interest; Elf Petroleum Angola has 10 percent; and AGIP Angola Ltd. holds the remaining 9.8 percent interest.

Updated: December 1998