press release

Chevron Press Release - Chevron Gets Go-ahead To Explore Offshore Bahrain

SAN FRANCISCO, Feb. 24, 1998 -- Chevron and the State of Bahrain signed an agreement today which will allow Chevron to explore for oil in three offshore areas of Bahrain. The new exploration areas are believed to hold a number of promising crude oil prospects, and have been designated Blocks 1, 2, and 3.

His Excellency Isa bin Ali Al Khalifa, Minister of Oil and Industry, signed the agreement today in Bahrain's capital, Manama, with Luigi P. Caflisch, managing director of Chevron Africa/Middle East.

The production-sharing agreement outlines an exploration program for the three blocks, which encompass approximately 5,900 square kilometers. Chevron is operator and will hold 100 percent interest. The company said 2-D and 3-D seismic surveys are expected to begin this year, followed by exploratory drilling beginning in the year 2000.

Drawing on Chevron's long history in Bahrain, Richard Matzke, president of Chevron Overseas Petroleum Inc., said Chevron is honored to be returning to Bahrain. "We are confident this opportunity will lead to mutual benefit for the people of Bahrain and the shareholders of Chevron," said Matzke, who is also a member of the Board of Directors of Chevron Corp.

Chevron's presence in Bahrain dates back to the 1920s. In 1932, Chevron -- then known as The Standard Oil Company of California -- drilled Jabal ad Dukhan No. 1, the first commercial oil discovery on the Arabian Peninsula. The wildcat well initially produced 1,400 barrels of crude oil per day, and later lead to the development of the Awali oil field, which is still producing after 66 years.

Updated: February 1998