press release

Chevron Press Release - Chevron To Boost Investment In Democratic Republic Of Congo

KINSHASA, Jan. 26, 2000 -- Chevron announced today its plans to implement a spending program of $75 million (U.S.) over a period of the next three years in the Democratic Republic of Congo (DRC).

Building upon meetings with President Laurent-Desire Kabila, Chevron and its partners Teikoku Oil Co. and Unocal Congo reaffirmed their commitment to maintain crude oil production in the DRC by outlining plans for new investment and the reduction of operating costs for its offshore operations in the African nation. President Kabila was advised of Chevron's future commitments by Richard Matzke, vice chairman of Chevron Corp., and by Mark Puckett, managing director of Chevron's operations in Southern Africa.

This investment is earmarked for a multi-year drilling program, which will be conducted on acreage currently under lease by the Chevron partnership. Average production in 1999 was about 17,700 barrels of crude oil per day.

"To further underline our commitment to the DRC, we will be consolidating our operations in Muanda, while maintaining a presence in Kinshasa," said Matzke. "Our proposals were warmly welcomed by President Kabila, and we look forward to further building on our 40-year relationship with the people of the Democratic Republic of Congo."

The drilling program is expected to begin this quarter and is slated to include a combination of new development wells in existing producing fields and delineation wells to increase both production and reserves. Production is projected to increase to more than 20,000 barrels of crude oil per day later this year and to rise above 21,000 barrels per day in 2002.

Puckett noted that the new investment, coupled with the current restructuring of operations to reduce costs, will provide much needed revenue to the country. "One aspect of that restructuring will be to consolidate Chevron's operations management in Muanda and move data systems and operational decision making closer to the field," he said.

Note to Editors:

Chevron is Operator of the offshore concession for the Democratic Republic of Congo and holds a 50-percent interest; Teikoku holds 32.28 percent; and Unocal Congo holds the remaining 17.72 percent. Chevron has had a presence in DRC since 1959.

Updated: January 2000