press release

Chevron Press Release - Chevron Contracts For Two More Double Hull Tankers

SAN FRANCISCO, Jan. 9, 1997 - Chevron today announced agreements to acquire two new-build, double hull tankers as part of an ongoing fleet renewal program for Chevron Shipping Company. These new very large crude carriers (VLCC's) are to be built by Samsung Heavy Industries Co., Ltd. at their Koje Island Shipyard in Korea for delivery in late 1998 and early 1999.

Financing for the vessels has been arranged by Cambridge Partners L.L.C., a New York based investment bank. A Cambridge subsidiary will own the vessels and Chevron Shipping will operate them under a bareboat charter agreement. The initial charter term will be eight years, with five two-year Chevron options out to 18 years.

These additions bring the number of double hull vessels for Chevron to 14, representing 40 percent of its worldwide fleet. Each new 308,000 deadweight ton tanker will be capable of carrying approximately two million barrels of crude oil on a voyage from the Middle East to Chevron's refining locations in the United States.

Updated: January 1997