press release

Chevron Press Release - Chevron Sells Sumatra Gulf Oil Limited

SAN FRANCISCO, Sept. 20, 1996 -- Chevron today announced the sale of its wholly owned subsidiary, Sumatra Gulf Oil Limited, to Premier Oil plc.

In its sale of Sumatra Gulf, Chevron is divesting its two-thirds interest in the Natuna Sea Block "A" production-sharing contract (PSC) offshore Indonesia. The Natuna block includes both the Anoa oil field, currently producing about 13,000 barrels of crude per day, and undefined reserves of natural gas.

Chevron chose to divest its interest in the Natuna Sea Block "A" in order to better focus on the company's long-term strategy for exploration and production operations in nine other contract areas onshore and offshore Indonesia.

Chevron has been active in Indonesia since 1924. Its remaining interests are managed by two affiliate companies, P.T. Caltex Pacific Indonesia (CPI) and Amoseas Indonesia (AI). CPI operates two of the largest oil fields in Asia -- Duri and Minas. CPI's production now exceeds 750,000 barrels per day, and accounts for about half of Indonesia's crude oil production.

Note to Editors:

Caltex Pacific Indonesia (CPI) and Amoseas Indonesia (AI) are jointly owned by Chevron and Texaco. The Duri steamflood, the world's largest steamflood project, continues to coax oil from the field which has, to date, yielded more than a billion barrels and is expected to continue production through 2025. In 1995, Chevron negotiated a new PSC in the Lariang block in west-central Sulawesi. Chevron's net share of total production from its Indonesian interests is approximately 174,000 barrels per day.

Updated: September 1996