press release

Chevron Press Release - Chevron Announces First Production From Benchamas Field In Thailand

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SAN FRANCISCO, Aug. 4, 1999 -- Chevron today announced initial oil and gas production from its Benchamas field in Block B8/32, 125 miles offshore in the Gulf of Thailand. This is the first new production from assets acquired from Rutherford Moran Oil Corp. earlier this year.

Benchamas is the second of three known fields in the B8/32 block to enter production. The Tantawan field began producing in February 1997 and Maliwan is expected to come on stream in late 2001.

Initial production from Benchamas is 35 million cubic feet of natural gas per day (mmcfd) and 2,200 barrels of oil per day (bpd). Production from the field is expected to increase to 75 mmcfd and 25,000 bpd by October. The gas is sold under contract to the Petroleum Authority of Thailand (PTT) and the oil is exported via an adjacent Floating Storage and Offloading facility.

"This is a major milestone in the development of Block B8/32 and further confirms its exciting potential," said Richard Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum Inc. "By year end, we expect total production in the block to reach 145 mmcfd and more than 30,000 bpd. We believe the block holds proved and potential reserves of as much as three trillion cubic feet of gas and more than 350 million barrels of oil. This gives us a great foundation on which to further build our business in Thailand."

Benchamas is producing from three platforms, with 48 wells. Other satellite production platforms are expected to begin production in 2000.

"I want to congratulate everyone involved in bringing Benchamas to production on time and in budget, it's been a great team effort," said Jay Pryor, managing director of Chevron's Thailand business unit. "We're proud of the strong foundation our partners have established in developing the block and look forward to working with them to continue this success."

Chevron holds a 51.66 percent interest in the block and will become, subject to necessary government approvals, operator of the concession on October 1.

Chevron partners in B8/32 include Thaipo, a subsidiary of Pogo Producing Co. (46.34 percent), and Palang Sophon (2 percent).

Updated: August 1999