press release

Chevron Press Release - Chevron To Relocate Major Petroleum Technology Unit To Improve Efficiency

SAN FRANCISCO, Feb. 4, 1999 -- Chevron today announced a relocation of employees in its petroleum technology unit in La Habra, Calif., primarily to the San Francisco Bay Area in order to achieve more efficient coordination with internal customers, reduce costs and position for the future.

The move will affect about 330 scientists, engineers and technical support people. The primary relocations will be to Chevron's professional offices in San Ramon, Calif., and technology center in Richmond, Calif. Some job reductions will occur, with the number to be determined over the next several weeks.

"This will place some of our most powerful technical groups at the San Ramon headquarters of our major internal customer and our growth company, Chevron Overseas Petroleum Inc. (COPI)," said Don Paul, Chevron's corporate vice president of technology. "With COPI's expanding oil and gas businesses around the world, this consolidation will better integrate our support of their work and new technology initiatives."

The long-term savings are yet to be finalized, but are integral to the corporation's announced goal of achieving sustained reductions in costs throughout the company.

"We realize this action will cause considerable personal difficulty for our employees and their families," said Paul. "This also hits home personally because I started with Chevron at La Habra and worked there in a number of assignments."

Paul added, "We're saddened about the impact of this departure on Chevron's relationship with the city of La Habra, which basically grew up around this facility, built more than 50 years ago as part of a major Chevron oil field. We'll do our best to minimize the effects of this transition."

The relocations will begin in the second quarter and are expected to be completed in about a year. The company intends to refurbish the 27-acre, landscaped La Habra facility, which houses eight major buildings, prior to putting it on the market next year.

Updated: February 1999