press release

Chevron Press Release - Chevron And Shell Announce Agreement For Cooperation In The Caspian Region

LONDON, Feb. 16, 1998 -- At a signing ceremony held today in London, Chevron and Shell agreed to cooperate in new energy projects in the Caspian region.

The agreement establishes a framework for Chevron and Shell to jointly identify and develop new projects in the areas of exploration, production, transportation, and sale of crude oil, gas liquids and natural gas. The two companies are already major participants in a primary transportation project for exporting Russian and Kazakhstan crude, the Caspian Pipeline Consortium project, to be completed by the year 2000.

Proposed projects include various upstream opportunities in the Caspian region and connecting the giant hydrocarbon volumes in the region to world markets.

Signatories to the agreement were Ken Derr, chairman of Chevron Corp., Dick Matzke, president of Chevron Overseas Petroleum Inc., Mark Moody-Stuart, vice chairman of the committee of managing directors of the Royal Dutch/Shell Group, and Phil Watts, group managing director of Royal Dutch/Shell Group.

"The combined strength of the Chevron/Shell alliance, working closely with the governments of the region, will provide the leadership necessary to facilitate infrastructure and resource development on a basis not previously contemplated," said Derr. He added, "We envision projects of a scale that would generate significant value for the people of the region and our shareholders."

"The Caspian region offers tremendous growth opportunities," said Moody-Stuart. "With Chevron's early entry in the Caspian region and our vision of cross-border transportation systems, we can work together to develop new opportunities as integrated projects," added Moody-Stuart.

Chevron and Shell will share equally in joint projects.

Updated: February 1998