press release

Chevron Press Release - Chevron Signs Agreement For New Acreage In China

SAN FRANCISCO, Sept. 2, 1996 -- At ceremonies held Saturday, Aug. 31, in Beijing, Chevron Overseas Petroleum Limited, in partnership with Petronas Carigali Overseas Sdn Bhd, a subsidiary of the Malaysian state oil company, signed a production sharing contract with the China National Offshore Oil Corporation (CNOOC) to explore for oil in the Liaodong Bay portion of Bohai Gulf.

The 2,000 square-mile (5,250 square-kilometer) offshore tract is approximately 250 miles (400 kilometers) northeast of the capital city of Beijing. The new acreage area, designated Block 02/31, is located in the North China Basin, where some of China's largest oil fields -- Shengli and Liaohe -- are found. It is adjacent to the producing Suizhong-36 field which is operated by CNOOC. The Suizhong field is estimated to have over 1.5 billion barrels of oil in place.

Among those attending the ceremonies were Wang Yan, president of CNOOC; Ross Deegan, president of Chevron - China; and Dato' Mohamad Idris Mansor, director of Petronas Carigali Overseas Sdn Bhd. "Having doubled our oil production in China during the last year, Chevron is excited about additional exploration opportunities in China," said Deegan.

Under this agreement, Chevron holds a 60 percent interest with Petronas holding the remaining 40 percent. A 3-D seismic survey is expected to begin by the end of the year with further exploratory work following in 1997.

Chevron and its partners in the CACT Operators Group have the distinction of being the largest offshore oil producer in China. CACT's production from four fields in the Pear River Delta is over 120,000 barrels per day.

Updated: September 1996