press release

Chevron to Partner With CNPC on Major Gas Project in China

BANGKOK, Thailand, December 17, 2007 – Chevron Thailand Exploration and Production, Ltd. (Chevron) and its co-concessionaires today signed a Gas Sales Agreement (GSA) with PTT Public Company Limited (PTT) for blocks 10-13 in the Gulf of Thailand. The agreement is expected to boost natural gas supplies from these blocks by 500 million cubic feet of natural gas per day (mmcf/d) or from a daily contract quantity of 740 million cubic feet mmcf/d in 2007 to 1,240 mmcf/d from 2012.

The offshore blocks represent nearly 50 percent of Chevron's current operating areas in the Pattani Basin and include Erawan, Satun, Funan, Baanpot, Jakrawan, Plamuk, Yala, Pla Daeng, Trat and Platong operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60 percent to 80 percent. The signing in Bangkok was presided over by His Excellency Dr. Piyasvasti Amranand, Minister of Energy and included Tara Tiradnakorn, president of Chevron Thailand Exploration and Production, Ltd., Prasert Bunsunpun, president of PTT, Yoshiyuki Kagawa, president and CEO of Mitsui Oil Exploration Ltd. (MOECO), and Maroot Mrigadat president of PTT Exploration and Production Public Company Limited. (PTTEP).

Speaking at the signing ceremony, President of Chevron Thailand Exploration and Production, Khun Tara Tiradnakorn, said: "Today's signing builds on our 45-year relationship between Chevron and the Kingdom of Thailand in working together to deliver clean, competitive energy supplies to fuel the country's growing economy. We are extremely proud to have been a long term partner with the Kingdom and look forward to continuing to strengthen this relationship well into the next decade".

"This agreement paves the way for Chevron and its partners to boost production from the Gulf of Thailand and to work together to provide reliable natural gas supplies for use mainly in power generation but also in the industrial and transportation sectors and the petrochemical industry," said Tiradnakorn.

"Natural gas is one of the fastest growing segments of Chevron's portfolio," said Managing Director and CEO of Chevron Asia South Ltd., Steve Green. Adding that, "Chevron's natural gas production is currently used to produce approximately one third of Thailand's total electricity demand and this is expected to increase to 40 percent once peak production is achieved from 2012."

The main source of this increased supply is a planned 330 mmcf/d expansion of the Platong field, including a new central processing platform (CPP), as well as an additional 170 mmcf/d from existing platforms.

This agreement follows the recently announced production period extension for blocks 10-13 for an additional ten years, from 2012 to 2022. Chevron's co-concessionaires in the blocks include MOECO and PTTEP.

Chevron operates more than 180 platforms in the Gulf of Thailand with 2006 total average daily production of more than 144,000 barrels of oil and condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856 million net). Historically, the company and its joint venture partners have invested more than 12 billion US dollars in Thailand's oil and gas sector and paid the cumulative royalty of nearly 3.5 billion US dollars (1981 – 2006).

Chevron Corporation is one of the world's leading integrated energy companies. We have approximately 58,000 employees, and our subsidiaries conduct business across the entire energy spectrum – exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Thailand. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; results of additional testing; selection and successful execution of development plans; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: December 2007