press release

Chevron Press Release - Chevron Signs Exploration Agreement With Qatar

SAN FRANCISCO, April 18, 1996 -- Chevron today signed a new agreement to explore a sizable tract offshore Qatar. The area, designated Block 1NW, is adjacent to the super giant North Dome gas field, and is believed to contain a number of promising crude oil prospects.

Today in Doha, Chevron Overseas Petroleum (Qatar) Limited and its partner, MOL, the Hungarian Oil and Gas Company, signed the exploration production-sharing agreement with Qatar General Petroleum Corporation (QGPC), Qatar's state-owned petroleum company. The agreement outlines an exploration program for Block 1NW, an area of approximately 3,000 square miles offshore the Qatar peninsula, and immediately adjacent to prolific oil and natural gas producing fields.

Richard Matzke, president of Chevron Overseas Petroleum Inc., said, "We are proud to be returning to exploration in the Middle East, and very pleased to have the opportunity to explore this acreage in Qatar." He explained that Chevron, as operator, will begin the initial exploration phase through a 3-D seismic survey. Once the survey is complete and the data analyzed, Matzke said the companies plan to drill two exploration wells. Chevron holds 60 percent interest; MOL holds the remaining 40 percent interest.

Chevron was one of the earliest of any of the international oil companies to have a presence in the Middle East, a history which dates back to the 1920s and resulted in the first crude oil discoveries in Saudi Arabia, Kuwait and Bahrain.

NOTE TO EDITORS: Chevron's history in the Middle East dates back to the 1920s. The company, then known as Standard Oil Company of California, or "SOCAL," made the first crude oil discovery in Bahrain -- Jabal ad Dukhan No. 1 -- in 1932. Enticed by the surface appearance of a "hill" across the water in Saudi Arabia, SOCAL relocated its efforts to the Kingdom and spent the next several years drilling six holes into the Dammam Dome. In 1938, Chevron made the first oil discovery in Saudi Arabia: before it was 50 days old, Dammam No. 7 had produced more than 100,000 barrels of oil, establishing Saudi Arabia's future as a leader in crude oil production. In April 1938, Gulf Oil Corporation made the first discovery in Kuwait -- the giant Burgan oil field. Chevron's aggregate expertise in the Middle East region was greatly enhanced through its merger with Gulf Oil in 1984. Chevron currently operates in more than 100 countries throughout the world, engaged in oil and gas exploration, production and transportation, and serves as a technical consultant in many countries, working to augment development of local hydrocarbon reserves.

Updated: April 1996