press release

Chevron To Begin Construction On State-of-the Art Polyethylene Pipe Plant

CHEVRON TO BEGIN CONSTRUCTION ON STATE-OF-THE ART POLYETHYLENE PIPE PLANT IN KAZAKHSTAN

This is news concerning Chevron but issued by a Chevron subsidiary, Chevron Munaigas Inc., and archived here for record purpose.

ATYRAU, KAZAKHSTAN, Aug. 29, 2001 -- Chevron Munaigas Inc. announced today that construction is to begin on the first high-density polyethylene pipe manufacturing facility in Kazakhstan. The plant will produce plastic pipe that can be used in irrigation, sewer, water and gas distribution systems.

Serikbek Daukeev, Akim of the Atyrau oblast and Guy Hollingsworth, managing director, Eurasia business unit, Chevron Overseas Petroleum Inc., are scheduled to participate in groundbreaking ceremonies today in Atyrau.

Construction of the state-of-the-art plant is scheduled to take about 20 months.

"Chevron is excited about investing in this world class facility here in Atyrau," said Guy Hollingsworth, managing director of Chevron Overseas Petroleum Inc.'s Eurasia business unit. "We hope that the creation of new jobs and bringing new technology to the region will be an important contribution to the import substitution program implemented by Kazakhstan's leadership."

"Chevron will use the latest technology, environmental and conservation methods to ensure that the plant is constructed and operated in a safe, efficient and environmentally responsible manner," said Hollingsworth.

Polyethylene pipe has characteristics, such as its resistance to corrosion and ease of installation that makes it a superior choice for many pipe applications. The plant will have an initial production capacity of 15 million pounds of pipe each year and can be expanded to handle additional production in the future.

Chevron was the first major Western oil company to invest in Kazakhstan and holds a 50 percent interest in the Tengizchevroil joint venture. In addition, the company is the largest private shareholder of the Caspian Pipeline Consortium, and has retail operations in the region.

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 relating to the expected completion, employment and production capacity for the high-density polyethylene pipe manufacturing facility in Kazakhstan. These are based on management's current expectations, estimates and projections. The statements included in this release are not guarantees. Actual outcomes and results could differ materially from what is expressed or forecasted in these forward-looking statements.

Updated: August 2001