press release

Chevron Press Release - Chevron To Share Operations In Bolivia

SAN FRANCISCO, June 28, 1995 -- Chevron announced today that its wholly owned subsidiary, Chevron International Limited (Bolivia), has signed an agreement to share 35 percent of its interests in the 2.5 million-acre Caipipendi exploration tract in Bolivia with British Gas.

Chevron retains a 65-percent interest in the block and will continue as operator for the consortium. Chevron is currently in the final stages of negotiation with a third party to farm out an additional 25-percent equity interest.

While terms of the farm-out arrangement were not disclosed, Richard Matzke, president of Chevron Overseas Petroleum, said the capital infusion from British Gas will assist in exploration efforts which Chevron began in 1991.

Due to its location a mile and a half above sea level in rugged foothills of the Andes Mountains, the Caipipendi tract has presented considerable challenges for geologists and engineers in their hunt for deposits of crude oil and natural gas.

"Caipipendi is on a geologic trend with major gas fields in northern Argentina," Matzke pointed out, noting that in the event the consortium finds commercial quantities of natural gas, Caipipendi is well-located to supply future reserves to the proposed new pipelines from Bolivia to Brazil and to Chile.

In the first three years of the contract, Chevron acquired seismic data and drilled one exploratory well in the northern part of the Caipipendi block in an unsuccessful search for crude oil. With the possibility of a major gas pipeline to Brazil and the opening of that major natural gas market, the new consortium will explore the southern part of the block which is more likely to contain gas-bearing geologic formations.

The Caipipendi block is located about 200 miles south of Santa Cruz, the hub of Bolivia's oil industry, and 400 miles southeast of the Bolivian capital of La Paz. Chevron said the exploration schedule includes delineation of natural gas prospects for future drilling in the Caipipendi area.

Updated: June 1995