press release

Chevron Press Release - Chevron Awards Contracts For Development Of Kuito Field

SAN FRANCISCO, Oct. 6, 1998 Chevron today announced the awarding of contracts totaling approximately $400 million for the initial phase of the Kuito field development in Angola. The consortium, headed by Single Buoy Mooring Production Contractors, with its partners Asea Brown Boveri and Coflexip Stena Offshore, will provide a floating production and storage vessel, export buoy, sub-sea wellheads and piping. This early production system will be capable of handling 100,000 barrels of oil per day (bpd) and will include facilities for water and gas injection.

Discovered in April 1997, Kuito is expected to be Angolas first deep water producing field with first oil anticipated by the second half of 1999. Initial production of the field is expected to be 75,000 bpd and will reach peak production of 100,000 bpd by 2002.

In another operational first, Kuito will be Angolas first deep-water, zero-flare field. Kuito gas, produced in association with the oil, will be re-injected back into the reservoir. Chevrons Nemba and Lomba fields, located in nearby Block 0, are also zero-flare.

We are excited about the fast-paced development of the Kuito Field and the continuing exploration successes throughout Block 14, said Richard Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum Inc. Along with the long-term economic benefits our activities bring to Angola, we are equally proud of the environmental benefits associated with our gas re-injection efforts.

The Kuito field is one of three commercial discoveries in Block 14. Chevron is continuing to conduct further appraisal of their second and third discoveries, Landana and Benguela, to confirm field reserves.

Block 14 is a 1,560-square-mile concession located adjacent to the 2,100-square-mile Block 0 offshore Concession in Angolas Cabinda Province. Chevron operates Block 14 and holds a 31 percent interest. The remaining interest is held by Sociedade Nacional de Combustiveis de Angola (SONANGOL), the Angolan national oil company (20 percent), Agip Angola (20 percent), Total Angola (20 percent) and Petrogal (9 percent).

Updated: October 1998