press release

Chevron Awarded New Acreage Offshore Australia

Chevron named operator and awarded 50 percent interest in exploration block

SAN RAMON, Calif., and PERTH, Australia, Jan. 31, 2006 -- Chevron Corporation (NYSE:CVX) subsidiary Chevron Australia Pty Ltd has been awarded the exploration rights to offshore block W05-16 in the Carnarvon Basin in Australia. The block, in the highly prospective Greater Gorgon Area, is located off the northwest coast of Australia.

Chevron will be the operator of the block and will hold a 50 percent interest. Shell Development Australia and ExxonMobil each will hold a 25 percent interest in the block. The W05-16 permit area covers an area of 1,020 square miles (2,650 square kilometers) and lies approximately 60 miles (100 km) northwest of Barrow Island. The Carnarvon Basin, Australia's premier petroleum basin, includes both the North West Shelf and Greater Gorgon Area resources.

John Watson, Chevron International Exploration and Production Company president, said, "This award demonstrates our worldwide focus on pursuing high-impact areas for exploration and signals Chevron's further commitment to pursue attractive growth opportunities as part of our integrated global gas business."

Jay Johnson, managing director of Chevron Australia Pty Ltd, added, "This acreage, which is adjacent to the gas fields of the Chevron-led Gorgon Project, significantly expands our interests in offshore Western Australia and reinforces the prominence of Australia in Chevron's overall exploration and development plans. The work to support this bid reflects the advancement in our technical understanding of the complex geology of this basin."

The three-year work program for the permit area includes geotechnical studies, approximately 1,500 miles (2,350 km) 2-D seismic reprocessing, 695 square miles (1,800 sq. km) 3-D seismic survey acquisition and the drilling of two exploration wells. Seismic work will begin this year. There is potential for a further three-year work program.

Headquartered in Perth, Western Australia, Chevron Australia Pty Ltd is leading the joint -venture development of the Greater Gorgon Area licenses, is a joint-venture participant in the North West Shelf Venture, and is operator and joint-venture participant in the Barrow Island and Thevenard Island oil fields. All are located off the northwest coast of Australia.

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


This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations 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 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.

Among the factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by hurricanes Katrina and Rita; prices for and competitive conditions affecting supply and demand for crude oil and natural gas; refining margins and marketing margins; actions of competitors; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential disruption or interruption of the company's net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); and potential liability resulting from pending or future litigation. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

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 "reserves" and others that are used in this and other press releases 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.

Published: January 2006