Chevron Announces Gas Sales Agreement to Supply Additional Gas From the East Coast Marine Area in Trinidad and Tobago
SAN RAMON, Calif., May 29, 2007 -- Chevron Corporation (NYSE: CVX) today announced that its affiliate Chevron Trinidad and Tobago Resources SRL and partner BG Group have entered into a gas sales agreement with the National Gas Company of Trinidad and Tobago Limited (NGC) for the supply of 220 million standard cubic feet of natural gas per day for a term of 11 years, with an option to extend for another four years. Deliveries are expected to begin in 2009.
The natural gas is expected to be sourced from the Dolphin Field, located approximately 52 miles off the east coast of Trinidad in the East Coast Marine Area (ECMA). First commercial production from Dolphin began in 1996. Four new development wells are planned to provide the additional gas to be delivered to NGC for use in the Trinidad and Tobago domestic market. Chevron and operator British Gas each have a 50 percent working interest in the ECMA.
"The agreement with NGC represents Chevron's continued commitment to work with the Trinidad and Tobago government to meet the island's increasing demand for natural gas," said Ali Moshiri, managing director for Chevron's Latin America Business Unit and president of Chevron Trinidad and Tobago Resources. "Chevron plans to work closely with the government to promote additional development of Trinidad and Tobago's natural gas reserves, its local market and further liquefied natural gas (LNG) growth in the island."
"Chevron's resources and exploration opportunities in Latin America and the Caribbean can allow us to expand the domestic gas market, build new export pipelines and increase sales to the regional LNG markets. This recent agreement is an additional step for Chevron to expand its production in the region and monetize its resource base," added John Watson, president of Chevron International Exploration and Production.
Chevron Corporation is one of the world's leading energy companies. With approximately 56,000 employees, Chevron conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995
This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations in Trinidad and Tobago that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news 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. U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. This press release contains estimates of natural gas quantities contained in the Dolphin Field, which may not be limited to proved reserves, and that may not be permitted to be included in disclosures in documents filed with the SEC. U.S. investors should refer to disclosures in Chevron's Annual Report on Form 10-K for the year ended December 31, 2006.
Updated: May 2007