press release

Chevron Press Release - Chevron Executive Meets With Bangladesh Prime Minister To Discuss Energy Projects

DHAKA, BANGLADESH, Dec. 15, 1997 -- Richard Matzke, president of Chevron Overseas Petroleum Inc. and a director of Chevron Corp., met in the capital here with Prime Minister Sheikh Hasina Wajed and other high-level government officials to discuss projects of mutual cooperation.

Matzke also met with Foreign Minister A. H. Chowdhury and Energy Minister Nooruddin Khan, and was joined by Tom Hazen, Texaco's president of exploration and production new business development, and Rob Lagaay, Chevron's managing director for Asia.

Exploration Block 9, on which Chevron and Texaco have submitted a joint bid, was the main project discussed.

"Bangladesh has large gas reserves, and the government has made great strides in laying the ground work for foreign investment by establishing stable fiscal conditions in the oil and gas sector," said Matzke. "The gas resources which Chevron and Texaco hope to develop will help supply Bangladesh's immediate energy needs. Increasing energy self-sufficiency will promote economic growth and lead to much needed industrial development in the country."

Matzke added, "Our meetings with Bangladeshi officials have greatly encouraged Chevron that Bangladesh is a country in which we want to do business."

Technical discussions about Block 9 are ongoing. Numerous pipelines carrying existing production are located in Block 9, and new natural gas resources could be brought onstream quickly.

In addition to their interest in upstream projects, Chevron and Texaco bring expertise into the marketing arena through their jointly owned affiliate, Caltex. A leading refiner and marketer of petroleum products in the Asia Pacific region, Africa, and the Middle East, Caltex is currently developing a plan to supply Bangladesh markets with liquefied petroleum gas (LPG). In the longer term, Caltex intends to market a full range of petroleum products and is developing the infrastructure to support import and distribution requirements.

Notes to editors:

Chevron and Texaco each own 50 percent of Caltex Petroleum Corp. Established in 1936, Caltex companies operate in more than 60 countries around the world. Caltex sales of petroleum products stood at 1.2 million barrels per day at year-end 1996.

Updated: December 1997