press release

Chevron Press Release - Chevron To Operate Venezuela's Ll-652 Field

SAN FRANCISCO, May 14, 1998 -- A Chevron-led international consortium which includes Statoil, Arco, and Phillips, held a ceremony today celebrating transfer of operations for and development of Venezuelas LL-652 oil field to the consortium from Petroleos de Venezuela (PDVSA).

"We are honored to have been chosen to operate LL-652 and eager to get to work," said Richard Matzke, a director of Chevron Corp., and president of Chevron Overseas Petroleum Inc. "The consortium plans to invest approximately $2 billion to tap recoverable reserves of more than 500 million barrels over the life of the 20-year Operating Services Agreement."

Located in Lake Maracaibo, LL-652 was discovered in 1953, and to date has produced 198 million barrels of light (36-degree, API gravity) crude oil. Chevron expects to produce 115,000 barrels per day within the next 10 years.

The international consortium obtained the right to redevelop the LL-652 field during Venezuelas highly successful third competitive bidding round in June 1997. Chevron and Statoil each have a 30-percent interest in the field, with Phillips Petroleum and Atlantic Richfield (ARCO) each holding a 20-percent interest.

The transfer of operations took place today at PDVSAs Upstream Regional Headquarters in Maracaibo, and was honored by the presence of Oscar Quiones, general manager of PDVSA West Production. David Steele-Figueredo, president of Chevron Latinoamrica, and Nicols Alvarado Ruiz, general manager of the LL-652 project, represented Chevron.

Updated: May 1998