press release

Chevron Press Release - Chevron Makes First Sale Of Natural Gas to Turkish State-Owned Gas Company

SAN FRANCISCO, Aug. 23, 1995 -- Chevron today announced a limited sale of liquefied natural gas (LNG) to Boru Hatlari Ile Petrol Tasima A.S. (BOTAS), the state-owned gas company of Turkey.

Chevron Oil Trading made the spot sale for Chevron's share of up to five LNG cargoes to be delivered over the next eight months to the new BOTAS LNG receiving terminal at Marmara Ereglisi. The liquefied natural gas is produced from the North West Shelf Gas Project's LNG plant in northwestern Australia in which Chevron, through its wholly owned subsidiary, Chevron Asiatic Limited (CAL), holds a one-sixth interest. Each of the six NWSGP participants individually sold their respective shares of the LNG cargoes to be delivered to Turkey. The LNG cargoes are valued at over (U.S.) $40 million, of which Chevron's share is one-sixth.

"Turkey is a new market for Chevron," said Al Caccamo, president of Chevron Oil Trading, "whose natural gas consumption is forecast to quadruple in the next five years." Caccamo noted that several spot cargoes of NWS LNG have been sold into Europe in the past, but that this is the first such sale into Turkey.

"We are extremely pleased with this spot sale," said Richard Matzke, president of Chevron Overseas Petroleum, "because it helps maximize the return on our very substantial investments in Australia." The LNG plant has the capacity to produce approximately 135 cargoes per year (over 7.5 million tons), nearly all of which are sold on long-term contracts to major electric and gas utilities in Japan.

NOTE TO EDITORS: The North West Shelf Gas Project's LNG plant began operating in 1989. Since that time, its production has increased steadily to its present capacity. NWS LNG is sold to eight Japanese customers under a long-term contract, with a dedicated fleet of eight vessels used to deliver the LNG to Japan. The six equal-share NWS Gas Project participants are: Chevron Asiatic Limited, BHP Petroleum (North West Shelf) Pty. Ltd., BP Developments Australia Ltd., Japan Australia LNG (MIMI) Pty. Ltd., Shell Development (Australia) Proprietary Limited, and Woodside Petroleum Ltd.

Updated: August 1995