press release

Chevron Press Release - Chevron Sells Remaining Coastal California Production Assets

SAN FRANCISCO, July 2, 1999 -- Chevron today announced it completed the sale of the company's remaining coastal California production assets to Arguello Inc., a wholly owned subsidiary of Plains Resources Inc. Financial details of the sale were not disclosed.

"The sale of these assets is the final step in implementing Chevron's exit from offshore California oil and gas production," said George Steinbach, manager of Chevron's coastal California production. "Completing this exit allows Chevron to shift its resources to international growth prospects and will result in significant cost savings, both key corporate strategies," Steinbach added.

The sale included Chevron's 26 percent share of production assets associated with the Point Arguello Field, consisting of Platforms Hidalgo, Hermosa, and Harvest, located in federal waters at the northwest end of the Santa Barbara Channel; an oil processing plant located in Gaviota; and interconnecting pipelines. These assets were owned by Chevron U.S.A. Production Co. and Chevron Pipe Line Co., wholly owned subsidiaries of Chevron Corp.

Chevron has been producing oil and gas offshore Santa Barbara and Ventura counties since 1958. Chevron's current net production from these assets is about 4,600 barrels of oil per day, less than one percent of Chevron's U.S. production.

Updated: July 1999