press release

Chevron Press Release - Chevron Opens Office In Tbilisi

Chevron Expands Operations In Republic Of Georgia
Office Opens In Tbilisi And Chevron Branded Lubricants Launched With GIOC

TBILISI, GEORGIA, Oct. 12, 1998 Recognizing Georgias strategic importance in the Caspian region, Chevron announced today that it is broadening its activities in the country.

In ceremonies yesterday, Chevron Director Richard Matzke was on hand to celebrate the opening of the Chevron Tbilisi office, which will monitor transportation activities and evaluate potential downstream opportunities.

Also yesterday, Chevron branded lubricants products were introduced in a ceremony with Georgian International Oil Corporation (GIOC) Trading, its in-country distributor. Presiding over the ceremony were Georgia President Eduard Shevardnadze, GIOC President Gia Chanturia, and Matzke.

International partnerships, such as the one with Georgia and its national oil companies, are critical to developing and expanding Chevrons upstream and downstream businesses, said Matzke, who is also president of Chevron Overseas Petroleum Inc. Were pleased with the strong working relationships weve established with the Georgian government and companies, and we expect to see continued growth that will bring benefits for the Georgian economy and Chevron.

Chevron Products Co. and GIOC formalized the partnership in July. GIOC will distribute Chevron lubricants nationally through service stations, retail dealers and to industrial plants.

The partnership with GIOC and expansion into Georgia continues Chevrons plan to be a leader in the branded lubricants business, said Dave OReilly, president of Chevron Products Co., a leading manufacturer and marketer of lubricants to retail and industrial consumers. The entry into the Georgian market will make available the full range of quality Chevron oils and greases for use in passenger cars, trucks, agriculture and industry.

Chevron already distributes branded lubricants in other countries of the former Soviet Union, and plans further growth throughout Central Asia and Eastern Europe.

The office opening and the lubricant products launch increase Chevron's business presence in Georgia. Earlier this year, Chevron and Caspian TransCo entered into an agreement with Georgia which provides the companies the right to use and operate existing Georgian oil transportation facilities from the Georgian town of Khashuri to the port of Batumi on the Black Sea. The facilities rehabilitation work will begin soon and should be completed within 4 to 6 months. Chevron and Caspian TransCo are currently transporting Tengiz crude by railroad, pipeline and barge from Kazakhstan through Azerbaijan and Georgia. The volume transported is well in excess of 2 million tons per year or 42,000 barrels per day.

Updated: October 1998