press release

Chevron Press Release - Chevron Celebrates First Oil Flow From New Area Offshore Angola

SAN FRANCISCO, May 5, 1997 -- Chevron announced today that it has begun production from the North N'Dola oil field in Area C located offshore the Republic of Angola.

"This is an historical and significant achievement as it marks the first production of crude oil from this new area," said Richard Matzke, director of Chevron Corp. and president of Chevron Overseas Petroleum Inc.

"Production from North N'Dola will play a significant role in helping the Chevron-led Cabinda Association reach its goal of producing 600,000 barrels of oil per day in Angola by the year 2002," added Matzke. The Association is Angola's leading oil producer, with current production of approximately 420,000 barrels of oil per day from its offshore fields.

The N'Dola field was discovered a number of years ago, but not developed immediately due to technical difficulties in bringing such a remote field on to production. Over the years, geologists and engineers have discovered many oil fields in Angola's offshore Areas A and B, which lie closer to the Angolan coast.

"Each new field brought on to production in A and B expanded the infrastructure further offshore, bringing the more remote Area C closer to development," said Mark Puckett, managing director of Cabinda Gulf Oil Co., the subsidiary of Chevron which operates the Cabinda Concession on behalf of itself and the Cabinda Association.

The N'Dola field is one of several discoveries Chevron has made in Area C. Eventually each of these will contribute its reserves to the Association's daily production. Oil flow from the new field is expected to reach a rate of 20,000 barrels per day by year end.

Note to Editors

Interests held in the Cabinda Association are:
Sociedade Nacional de Combustiveis de Angola Limited (SONANGOL), 41 percent
Cabinda Gulf Oil Company, 39.2 percent
Elf Angola, 10 percent
Agip Angola Limited, 9.8 percent

Updated: May 1997