press release

Chevron and Partners Unanimously Approve Caspian Pipeline Key Commercial Terms

Caspian pipeline expansion to significantly increase transportation capacity

MOSCOW, Dec. 18, 2008 - Chevron Eurasia, an affiliate of Chevron Corporation (NYSE:CVX) announced today that the Caspian Pipeline Consortium (CPC) shareholders have unanimously approved the key commercial terms for an expansion project that will more than double the capacity of the pipeline. CPC provides an important transportation outlet for the export of crude oil from Kazakhstan and Russia to the Black Sea. The Shareholders' approval also authorizes $50 million funding of additional detailed engineering work required for a final investment decision.

Expansion of CPC is expected to increase the annual design capacity of the pipeline from 28 million tons to 67 million tons, or 1.4 million barrels per day). The project plans to use the existing 935 miles (1,505 kilometers) of pipe and expand throughput capacity by the addition of 10 new pump stations (for a total of 15), six new 100,000-cubic-meter storage tanks at the Marine Terminal near Novorossiysk, and additional offshore loading facilities. The project also calls for 55 miles (88 kilometers) of new pipe to be added in Kazakhstan.

"Caspian production over the next 10 to 15 years is forecasted to grow significantly, and this pipeline expansion will help enable that growth." said Jay Johnson, Chevron managing director for Chevron Eurasia. "The scope of this project is equivalent to adding a new export pipeline in this important region and will boost TCO's ability to transport Tengiz crude to markets on behalf of its partners," added Johnson.

Chevron is a leading crude oil producer in the Caspian region, primarily through its 50 percent ownership in the Tengizchevroil (TCO) partnership, a joint venture formed in 1993 to develop the Tengiz and Korolev fields in Kazakhstan over a 40-year period.

Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron 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 and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at

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 the Caspian region. Words such as "anticipates," "expects," "projects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" 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 demand for and supply of crude oil and natural gas; selection and successful execution of development plans; actions of competitors; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on the scope of the company's operations; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; 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.

Published: December 2008