press release

Chevron Confirms Uge Deepwater Discovery Offshore Nigeria

SAN RAMON, Calif., May 17, 2006 -- Chevron Corporation announced today that its subsidiary, Chevron Nigeria Deepwater B Limited and its partners have drilled the first oil discovery in Oil Prospecting License (OPL) 214 approximately 70 miles (113 kilometers) offshore Nigeria.

The Uge-1 discovery well was drilled in 4,144 feet (1,263 meters) of water to a total depth of 16,831 feet (5,130 meters) and encountered more than 300 net feet (100 meters) of oil.

"This discovery is a further demonstration of how we are achieving superior success from a focused and high-impact exploration program," said John Watson, president, Chevron International Exploration and Production.

"Chevron is pleased with the success of the well and believes the discovery will help enhance its already strong position in Nigeria and West Africa," said Fred Nelson, managing director of Chevron Nigeria/Mid-Africa Strategic Business Unit.

Chevron Nigeria Deepwater B Limited has a 20 percent interest in the Block. Esso Exploration and Production Nigeria Deepwater West, Limited is the operator of OPL 214 with a 20 percent working interest. Other working-interest owners are Phillips Deepwater Exploration (Nigeria) Limited (a subsidiary of ConocoPhillips) at 20-percent, Oxy Nigeria Exploration & Production Limited (a subsidiary of Occidental Petroleum Corporation) at 20 percent, Nigerian Petroleum Development Company at 15 percent, Sasol Exploration and Production Nigeria Limited at 5 percent and Nigerian National Petroleum Corporation (NNPC) is the concessionaire. Uge-1 represents the first discovery on the license.

Updated: May 2006