press release

Chevron Australia Signs Heads of Agreement for LNG Sales to Osaka Gas

SAN RAMON, Calif., Dec. 8, 2005 -- Chevron Corporation (NYSE: CVX) today announced the signing of a Heads of Agreement between Chevron Australia Pty Ltd, a subsidiary of Chevron Corporation, and Osaka Gas Co. Ltd, for 1.5 million tonnes per annum (MTPA) of Chevron's share of Gorgon liquefied natural gas (LNG) over 25 years commencing in 2011. The parties are also discussing the details of a potential sale and purchase of an equity interest in the Gorgon Project.

In welcoming Osaka Gas as a foundation customer, John Gass, president of Chevron Global Gas, said: "Osaka Gas will play a distinctive role in the foundation of the Gorgon Project. We look forward to working with Osaka Gas to explore joint business opportunities along the gas value chain.

"This latest agreement further underpins the development of the project and demonstrates the momentum behind Gorgon LNG," said Gass.

Gass added, "The Gorgon Project has reached a number of milestones this year, including entering the front-end engineering and design phase and securing multiple foundation LNG sales, bringing Gorgon LNG closer to commercialization and a final investment decision."

The balance of Chevron's entitlement to LNG from the first two trains of the Gorgon Project will be available to supply markets such as North America, where Chevron is pursuing a portfolio of options for importing natural gas.

The Gorgon Project, in which Chevron Australia holds a 50 percent operating interest, is to include an initial two train 10 MTPA LNG facility and a planned domestic gas plant located on Barrow Island. The project participants include the Australian subsidiaries of Shell (25 percent) and ExxonMobil (25 percent).

Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 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 on Chevron is available at

Editor's Note:

Chevron Australia has signed Heads of Agreement beginning in 2010 over a 25-year period with:

  • Tokyo Gas Co. Ltd. on Oct. 27, 2005, regarding the purchase of 1.2 MTPA of Gorgon LNG; and
  • Chubu Electric on November 21, 2005, regarding the purchase of 1.5 MTPA of Gorgon LNG.


Some of the items discussed in this press release are forward-looking statements about the Gorgon Project. Words such as "expected" "plans" and similar expressions are intended to identify such forward-looking statements. The statements are based upon 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 changes in the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company's joint-venture partners to fund their share of project expenditures; and general economic and political 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.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources" or "gas resource" and others are used in this press release that may not be permitted to be included 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, 2004.

Updated: December 2005