press release

Chevron Press Release - Chevron Confirms Agreement With Kazakhstan to Acquire Additional Stake

SAN FRANCISCO, May 17, 2000 -- Chevron today confirmed the signing of an agreement with the Republic of Kazakhstan to purchase an additional 5 percent stake in the Tengiz joint venture in western Kazakhstan.

The acquisition will increase Chevron's share of Tengizchevroil, the company which operates the huge Tengiz Field, from 45 percent to 50 percent.

"We're delighted to achieve this pact with our Kazakh partners and increase our commitment to the Republic of Kazakhstan," said Dave O'Reilly, Chevron chairman and CEO. "This achievement is consistent with our strategy to increase shareholder value by pursuing profitable growth opportunities."

Tengizchevroil (TCO), which was formed in 1993, has increased Tengiz Field production from 60,000 barrels per day (bpd) in the first year to about 215,000 bpd today. An expansion project to be completed this year is expected to increase production to 260,000 bpd. The Tengiz Field has estimated potential recoverable reserves of 6 to 9 billion barrels.

Tengiz is the primary driver for the Caspian Pipeline Consortium, which is building a major pipeline from Tengiz to the Russian Black Sea port of Novorossiysk.

Dick Matzke, Chevron vice chairman responsible for worldwide oil exploration and production activities, said the new agreement underscores the company's solid commitment to Kazakhstan and the CPC.

Stakeholders in Tengizchevroil are Chevron 50 percent, Kazakhoil 20 percent, ExxonMobil, 25 percent, and LUKARCO, 5 percent.

Updated: May 2000