press release

Chevron Press Release - Chevron Begins Production From New Nigeria Offshore Oil Field

SAN FRANCISCO, March 18, 1998 -- Chevron announced today that crude oil has begun to flow from the Opolo field offshore Nigeria. Opolo is the first of four new oil fields scheduled to begin production this year under the auspices of the joint venture between Chevron and the Nigerian National Petroleum Corp. (NNPC).

Chevron Nigeria Ltd., operator of the new oil field, said Opolo is producing oil at 20,000 barrels per day. The field is located in 140 feet of water in the western Niger Delta.

"We are particularly proud of this new field," said George Kirkland, managing director for Chevron Nigeria Ltd. "Opolo is the first oil field to have been developed using horizontal-well technology -- a first for the Chevron/NNPC joint venture." Kirkland pointed out that full-field start up through the newly installed wellhead and production facility began a mere seven weeks after the conclusion of a highly successful 3-month extended well test, which provided definitive reservoir characteristics.

Richard Matzke, president of Chevron Overseas Petroleum Inc., said that, "Opolo represents the first contribution toward Chevron Nigerias goal of a 10 percent increase in crude oil production in 1998, and demonstrates Chevrons commitment to Nigeria, its people, and development of its natural resources."

Matzke noted that a 10 percent production increase this year would raise the CNL/NNPC annual average to 470,000 barrels of liquids per day -- a big step toward achieving the joint ventures longer-term goal of producing 600,000-barrels-per-day by the year 2000.

Notes to editors:

Chevron holds 40 percent in the NNPC/CNL Joint Venture through its Chevron Nigeria Ltd. subsidiary; the remaining 60 percent interest is held by the NNPC.

Updated: March 1998