press release

Chevron Press Release - Chevron Pipe Line Co. To Consolidate Management And Support Services

SAN FRANCISCO, March 16, 1999 -- Chevron today announced the planned restructuring and consolidation of five offices of its pipeline subsidiary to improve operational efficiency and reduce annual operating expenses by $15 million.

The consolidation will involve relocating about 200 employees of Chevron Pipe Line Co. (CPL) from existing management and support offices in SLake City, Bakersfield and San Ramon, Calif., New Orleans and northern Houston to Chevron's Hayes Road facility, located about 15 miles west of downtown Houston.

As part of the restructuring and relocation, Chevron estimates approximately 100 positions will be reduced, although details of the implementation plan are still being finalized. The restructuring should be completed by the end of the year, with the annual savings fully realized in 2000.

The realignment is part of Chevron's comprehensive effort to maximize efficiency in order to continue strategic investment in international growth projects despite the current low price of oil.

"Restructuring and consolidation of the pipeline operations will improve our effectiveness and financial performance," said Jeet Bindra, president of CPL. "This is a difficult decision but one that is necessary to allow Chevron to remain competitive over the long-term."

CPL is responsible for the transportation management of crude oil, natural gas, petroleum and chemical products through nearly 9,000 miles of pipeline in the United States. CPL has some personnel in field offices located near its pipelines, and these will not be significantly affected.

Updated: March 1999