press release

Chevron Press Release - Chevron Executives Meet With Azeri President

BAKU, AZERBAIJAN, March 5, 1998 -- Chevron confirms that Richard Matzke, president of Chevron Overseas Petroleum Inc. and a director of Chevron Corp., met with Heydar Aliev, president of the Republic of Azerbaijan, to discuss projects of mutual interest, Chevron announced today.

Matzke was joined by his colleagues Nick Zana, managing director of Chevron's Eurasia business unit, and Moustafa Habib, country manager of Chevron in Azerbaijan, at the Tuesday meeting.

Here in the capital city, Matzke updated President Aliev on Chevron's activities in the Absheron block which was awarded to Chevron in 1997, and the alliance Chevron recently entered into with Shell for the companies to jointly identify and develop new projects in the Caspian region.

Matzke also briefed President Aliev on his recent meetings in the Republic of Georgia, including Chevron's agreement with the Georgian government which gives Chevron and Caspian TransCo the right to use Georgian oil transportation facilities to move Caspian oil from Khashuri to the port of Batumi on the Black Sea.

"The Caspian region is fortunate to have an abundance of oil and gas resources, and all of the countries in the Caspian will benefit from the development of these resources," said Matzke.

Chevron's activities in the Caspian region began in 1993 when it entered into a joint venture with the Republic of Kazakhstan to develop the Tengiz field. Since then, Chevron has tripled production at Tengiz and continues to expand production capacity.

Chevron expanded its presence in the region when it became the largest oil company shareholder in the Caspian Pipeline Consortium, won exploration and production rights to the Absheron block offshore Azerbaijan, as well as entered transportation agreements with the Republics of Georgia and Azerbaijan.

Updated: March 1998