press release

Chevron Press Release - Chevron Takes Over As Operator, Block B8/32 In Gulf Of Thailand

Pledges safety, environmental protection, operating excellence -- to become "partner of choice"

BANGKOK, Oct. 1, 1999 -- In celebrations today, Chevron took over operatorship of Block B8/32, a high-potential gas and oil area in the Gulf of Thailand.

Jay Pryor, managing director of Chevron's Thailand business unit, thanked the previous operator, Thaipo Ltd., a subsidiary of Pogo Producing Co., for their "commitment to developing Thailand's energy resources."

Pryor pledged to build the project on Chevron's strong tradition of safety, environmental protection and operating excellence. In addition, the company will place a high priority on increasing the employment and professional development of Thai nationals working on the project, he said. "We expect to contribute to Thailand in many ways," Pryor noted. "That's the way we do business throughout the world -- our goal is to become partner of choice in each of the countries in which we operate.

"We see a strong period of growth for the Thai economy -- and especially the Kingdom's very promising oil and gas industry," Pryor added. "We are working with our partners to develop B8/32's great proved and possible reserves potential of three trillion cubic feet of gas and more than 350 million barrels of oil."

Already, Pryor noted, current natural gas production from Block is B8/32 is 140 million cubic feet of natural gas per day, a 100 percent increase since early August, and oil production will shortly double, reaching about 30,000 barrels per day by year-end.

"Chevron is known for its long-term participation in regional growth opportunities," said Pryor. Founded in San Francisco 120 years ago, Chevron is credited with discovering oil in the Middle East in the 1920s, and was the pioneering company in Kazakhstan, where it operates the huge Tengiz oil field with reserves estimated between 6 and 9 billion barrels of oil. Chevron is today active in more than 100 countries.

A half-owner of Caltex Petroleum Corp., which is active in refining and marketing in 18 Asian nations, Chevron's Asian exploration and development roots began with the discovery of oil in Indonesia 80 years ago. The company is today seeking additional exploration and development opportunities throughout the Pacific Rim.

Chevron's interest in Block B8/32, about 125 miles offshore, was acquired following its purchase of Rutherford Moran earlier this year. It contains three known fields, including Benchamas, Tantawan, and Maliwan.

Chevron's wholly owned subsidiary, Chevron Thailand Inc., holds 51.66 percent interest in the block, and other partners are Thaipo, a subsidiary of U.S.-based Pogo Producing Co. (46.34 percent) and Bangkok-based Palang Sophon (2 percent).

The gas is sold under contract to the Petroleum Authority of Thailand (PTT) and the oil is exported via adjacent Floating Storage and Offloading and Floating Production Storage and Offloading vessels.

Updated: October 1999