press release

Chevron Press Release - Chevron, Partners Celebrate First Oil From Angola's Lomba Oil Field

Map of CABGOC interests

SAN FRANCISCO, May 11, 1998 -- Chevron announced today that its wholly owned subsidiary, Cabinda Gulf Oil Co. Ltd. (CABGOC), has begun crude oil production from Angolas Lomba oil field, located in 400 feet of water 40 miles offshore Cabinda province. Bringing Lomba onstream two months ahead of schedule -- following the recently completed installation of production facilities -- represents the latest in a series of successful Chevron-led developments offshore Angola.

Chevron and its partners in the Block O Cabinda Association -- Sociedade Nacional de Combustiveis de Angola (SONANGOL), Agip Angola Limited and Elf Angola -- are working to achieve their target of boosting their Angolan crude oil production to 600,000 barrels per day by the year 2001 -- a 50 percent increase from current production of approximately 420,000 barrels per day.

"Bringing Lomba onto production brings us one step closer to meeting that challenge," said Richard Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum Inc., who pointed out that Lomba is the fifth oil field since 1994 to come onto production in the deeper water areas of Block O.

"In addition to the immediate economic benefit of bringing Lombas oil onstream ahead of schedule, we will also realize a significant environmental benefit from this operation," said Mark Puckett, managing director of Cabinda Gulf Oil Co. Puckett said that natural gas produced in association with the crude oil will be collected, compressed, and reinjected. Reinjected gas will enhance production, and will also provide a long-term economic benefit.

Lombas production currently stands at 15,000 barrels per day and is expected to increase to 27,000 barrels per day by November 1998. Crude oil will be sent via pipeline to CABGOCs Malongo terminal.

Notes to editors:

The Kokongo oil field was brought onstream in 1994, the first oil field to yield production from Areas B and C of Block O. The South Nemba field early production system (EPS) followed in 1996, and the Sanha and NDola fields in 1997.

Cabinda Gulf Oil Co. Ltd. (CABGOC) holds a 39.2 percent interest in and operates the Cabinda Concession on behalf of itself and the Cabinda Association: SONANGOL (41 percent), Elf (10 percent), and Agip (9.8 percent). CABGOC is Angolas leading oil producer, averaging 420,000 barrels of oil per day, and has been active in exploration and production activities in Angola for 40 years.

Updated: May 1998