press release

Chevron Press Release - Chevron Announces Production Sharing Contract For Block "l"

Map of Block L in Equatorial Guinea

SAN FRANCISCO, May 15, 2000 -- Chevron today announced the signing of a five-year Production Sharing Contract with the Republic of Equatorial Guinea in West Africa to explore for oil offshore in water up to 2,000 meters deep.

The announcement followed meetings between the Prime Minister of Equatorial Guinea, Angel Serafn Seriche Dougan, and Peter Robertson, president of Chevron Overseas Petroleum Inc. His Excellency Cristobal Maana Ela, Minister of Mines and Energy, together with Secretary of State for Mines and Hydrocarbons, Gabriel Nguema Lima, were also in attendance.

Photo of Discussions in Equatorial

Left: Peter Robertson with Prime Minister Angel Serfin Seriche Dougan (center), His Excellency Cristobal Manana Ela, and Gabriel Nguema Lima, secretary of state for Mines and Hydrocarbons (right front).

Located in the Rio Muni Basin, the offshore Block L contract area covers 4,250 square kilometers (1,640 square miles). The work program includes seismic acquisition and exploration drilling. Chevron, which holds a 100 percent interest in the block, plans to establish an office in Equatorial Guinea later this year.

"This block is on trend with recent promising discoveries at the La Ceiba Field," said Robertson. "We're looking forward to applying Chevron technical expertise in deep water exploration to the Rio Muni Basin.

"Chevron is pleased to be returning to the country, where we drilled the first offshore well, Rio Muni A1, in 1968," Robertson added. "This newest partnership with Equatorial Guinea is an exciting opportunity consistent with our growth objectives and our already significant presence in West Africa."

Chevron is one of Africa's largest operators, producing more than 900,000 barrels per day of oil and natural gas liquids, primarily from Nigeria and Angola.

Updated: May 2000