press release

Chevron, Partners, Reach 100,000 Barrels Per Day

CHEVRON, PARTNERS, REACH 100,000 BARRELS PER DAY AS BIGGEST OFFSHORE OIL PRODUCERS IN CHINA

SAN FRANCISCO, June 19, 1995 -- Chevron, working with Texaco, AGIP, and the China National Offshore Oil Corporation (CNOOC), today announced that is has begun producing crude oil from two new fields located in the Pearl River Mouth Basin of the South China Sea. This "first oil" has been brought onstream five months ahead of schedule at a cost 10 percent below budget.

"With the addition of the Huizhou 32-2 and 32-3 oil fields, our international consortium is now the biggest offshore oil producer in China," announced Richard Matzke, president of Chevron Overseas Petroleum. "These two new Huizhou fields will contribute about 50,000 barrels of crude daily to the existing production from our other two oil fields in the Pearl River Delta, raising total production to exceed 100,000 barrels a day," said Matzke.

The Huizhou 32 fields, located about 100 miles southeast of Hong Kong in drilling contract area 16/08, raises to four the number of commercial oil fields in the Pearl River Delta to be jointly developed by CNOOC and ACT Operators Group. ACT is an international consortium which includes AGIP (Overseas) Ltd., Chevron Overseas Petroleum, Ltd., and Texaco China B.V. Each holds a 16 1/3-percent interest in the field, and CNOOC holds the remaining 51-percent interest.

Production from the Huizhou 32 fields will peak at about 60,000 barrels of oil per day in late 1995. The 30-to-39-degree API gravity crude is produced from sandstone reservoirs at depths ranging from 6,500 to 8,000 feet, through two new platforms standing in 375 feet of water. The Huizhou 32 fields, discovered by ACT Operators Group in 1991, are tied into an existing production system serving other oil fields nearby: the Huizhou 21 field, discovered in 1985 and brought onto production in 1990; and the Huizhou 26 fields, discovered in 1988 and brought onto production in 1991.

"We are delighted to realize the payoff of our time, efforts and financial investments through the opening of these oil fields," said Matzke, noting that ACT Operators Group initiated drilling in contract area 16/08 in October 1984. "Chevron is proud to be one of the parties instrumental in bringing offshore oil development and technology to China," Matzke said.

Updated: June 1995