press release

Chevron Press Release - Chevron Sells Lukarco Share Of Tengiz Field

SAN FRANCISCO, April 24, 1997 -- Chevron announced today that it has completed the sale of 10 percent of its interest in the Tengizchevroil joint venture to LUKARCO, a joint venture between LUKoil and Arco.

"The Tengizchevroil joint venture has become a model of successful economic cooperation in the former Soviet Union," said Dick Matzke, director of Chevron Corp. and president of Chevron Overseas Petroleum Inc. He added, "The addition of LUKARCO to the joint venture offers the consortium valuable expertise and experience in the region, as well as financial strength to participate in the full development of the Tengiz field."

"Kazakhstan has been an excellent place for Chevron to invest in," said Matzke. The Tengizchevroil joint venture earned and distributed significant profits in 1996, making it the most successful Western oil venture in the former Soviet Union. With estimated recoverable reserves of more than 6 billion barrels of oil, the joint venture could raise its current production of 160,000 barrels of oil per day to 700,000 barrels per day in about fifteen years.

The joint venture participants and their equity interest are Chevron with 45 percent, the Republic of Kazakhstan and Mobil at 25 percent each, and LUKARCO with 5 percent.

Financial terms of the sale were not disclosed.

Updated: April 1997