press release

Chevron Press Release - Chevron Announces Agreement On Gulf Of Thailand Operations

SAN FRANCISCO, Feb. 22 — Chevron announced today that it has reached a definitive agreement with Pogo Producing Co. regarding future production development and exploration of Block B8/32 in the Gulf of Thailand. Following approval by the Thai government, the agreement also includes the transfer of operatorship of the 734,000-acre block to Chevron. Block B8/32 is currently operated by Thaipo Ltd., a subsidiary of Pogo.

In December, Chevron announced it had executed a definitive merger agreement to acquire Rutherford Moran Oil Corp. (RMOC) for approximately $91 million in Chevron common stock following approval by RMOC's shareholders. RMOC holds 46.34 percent interest in Block B8/32, and one of the conditions of the merger is for Chevron to be named as operator of Block B8/32.

The agreement with Pogo is subject to completion of Chevron's merger with RMOC.

"Chevron is committed to a development program for Block B8/32 and maximizing its full potential," said Richard Matzke, president of Chevron Overseas Petroleum Inc. and a director of Chevron Corp. "We see long-term growth potential in the South East Asian gas market, and this entry in to Thailand is in line with Chevron's broader strategy of continuing to invest in long-term growth projects.

"Chevron is honored to play a role in the development of Thailand's natural resources," added Matzke. "We look forward to working closely with our new partners to ensure a smooth and productive transition."

Block B8/32, located about 125 miles offshore, has significant oil and gas potential. Significant development and delineation is currently underway in two new fields. One of those fields, the Benchamas Field, is expected to begin production later this year from its first three production platforms, including some 50 or more producing wells.

Block B8/32 also has additional exploration potential and is adjacent to exploration Blocks 7, 8 and 9 in which Chevron holds an interest.

Updated: February 1999