press release

Chevron Press Release - Chevron Set To Explore Two Promising Areas Offshore Brazil

SAN FRANCISCO, Jan. 13, 2000 -- Chevron has won rights to partner with Petrobrs in a 50/50 exploration venture in two promising offshore deep-water blocks in Brazil's prolific SBasin, the company announced today.

Brazil SBasins Mao

William Edman, president of Chevron Latin America, today signed joint venture documents with Petrobrs at its Rio de Janeiro headquarters. Formal assignment of Chevron's 50 percent interest in the two blocks by the National Petroleum Agency is expected shortly.

Chevron will join Petrobrs in exploring Block BC-20, a 2,061-square-kilometer area in water depths of 130 to 2,000 meters (426 to 6,562 feet) in the Campos Basin, and Block BCUM-100, which covers a 4,238-square-kilometer area in water depths of 100 to 2,150 meters (328 to 7,054 feet) in the Cumuruxatiba Basin. Bids were not disclosed.

"We are committed to pursuing promising exploration opportunities and are highly optimistic regarding the potential of this acreage," said Peter Robertson, president of Chevron Overseas Petroleum Inc. "We are honored to be granted the right -- and corresponding responsibility -- to partner with the highly respected Petrobrs, and we look forward to becoming a key player in Brazil's ever-expanding oil industry."

Edman said Chevron placed its bids following intensive study of geologic and economic data.

"We feel that the potential for significant discoveries in Blocks BC-20 and BCUM-100 will prove to be an excellent investment for shareholders of Chevron and Petrobrs, and we're delighted to have been chosen to share responsibility in exploration of these two areas," said Edman. "We see this as the beginning of a long and successful business partnership with Petrobrs, and we look forward to working closely with them."

Petrobrs, Brazil's state-owned oil company, holds a 50 percent working interest in the two concessions and will serve as operator.

Updated: January 2000