press release

Chevron Press Release - Chevron Cancels Permian Basin Combination With ARCO

MIDLAND, Texas, April 19, 1999 -- Chevron today announced it is discontinuing discussions with ARCO which have been aimed at combining the two companies' production and exploration operations in west Texas and New Mexico.

The companies announced Feb. 2 that they would pursue a combination of their Permian Basin oil and gas assets through a joint venture in which each would own a 50 percent stake. The new company was to be headquartered in Midland.

"Because of the announced acquisition of ARCO by BP Amoco, we have concluded that the best course for Chevron is to discontinue our efforts toward the proposed combination," said Peter Robertson, president, Chevron U.S.A. Production Co. "We will continue to hold and manage our Permian Basin assets and will maintain an office in Midland, though our operations and workforce in the area will be streamlined to compete in today's business environment."

Robertson said these plans would mean a reduction of some 100 positions in Chevron's Permian-area workforce, which currently totals 430.

"We're not foreclosing the possibility of a future joint venture in this area," added Robertson. "But, for now, we will focus on improving our own competitive position through near-term operating efficiencies and cost reductions, as Chevron is doing throughout its operations."

Updated: April 1999