press release

Chevron Announces Approval of Major Project

PASCAGOULA, MISS., June 21, 2005 -- Chevron Global Refining announced today plans to increase the capacity of the Pascagoula Refinery's Fluid Catalytic Cracking Unit (FCCU) by about 25 percent, from a current capacity of 63,000 barrels per day. This project will increase the Pascagoula Refinery's gasoline production by 500,000 gallons per day. With environmental permits in place, construction of the $150 million FCC Project is expected to begin next month and is expected to be complete in late 2006.

"We are pleased to see significant investments being made here that help the Pascagoula Refinery maintain its long term viability and competitiveness," Chevron Global Refining president Jeet Bindra said. "This FCC Project will upgrade the unit's technology, resulting in improved reliability and energy efficiency."

Mississippi Governor Haley Barbour said today's announcement is terrific news for all Mississippians. "Chevron's commitment to Mississippi is almost unprecedented. Over the last 42 years, they have invested more than $2 billion at the Pascagoula Refinery. At the same time, they have been excellent neighbors investing in communities on the Coast and across the state. We need more companies like Chevron in Mississippi."

Pascagoula Refinery general manager Roland Kell, a member of the Governor's Workforce Investment Board, noted that he had directed the project team to focus on doing business in Jackson County and Mississippi. "We've made hiring locally and buying local goods and services a priority. In fact, American Tank and Vessel, headquartered in Lucedale, Mississippi, is fabricating the project's new distillation column at their newly opened facility on the Escatawpa River in Moss Point. Floore Industrial Contractors, another hometown company, is fabricating the FCC reactor base plate template, and Contract Fabricators, Inc. in Holly Springs is fabricating components for the reactor and regenerator."

Additionally, Chevron has chosen J.E. Merit Constructors, Inc. to manage a number of subcontractors that will perform the construction work. Subcontractors will hire over 1,000 workers with a wide range of skills, including electricians, welders, and pipe fitters. Employment will increase from about 300 this year to 1,300 in 2006, when most of the work will be done. Those interested in employment by subcontractors should contact the Mississippi Employment Services office on 14th Street in Pascagoula.

Chevron manufactures more than 2 million barrels a day of refined products, in 21 wholly owned or joint-venture refineries and asphalt plants, and markets motor fuels through more than 25,000 retail outlets. The Pascagoula Refinery is Chevron's largest wholly owned petroleum refinery processing an average 325,000 barrels of crude oil a day and producing a variety of products including 5 million gallons of gasoline a day.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

This news release contains forward-looking statements about Chevron's plans to increase its Fluid Catalytic Cracking Unit capacity at the Pascagoula Refinery in Mississippi. The statements are based on 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 timing of the construction and commencement of the operation of the planned facilities; future supply and demand for refined products; the competitiveness of alternate product substitutes; and local and general economic 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.

Updated: June 2005