press release

Chevron Welcomes Gorgon Environmental Appeal Decision

Announcement Is Significant Milestone Toward Project Success

SAN RAMON, Calif., Dec. 12, 2006 -- Chevron Corporation (NYSE: CVX) today confirmed that Western Australia's environment minister has cleared the way for environmental approval to be granted to the Gorgon project subject to conditions.

The minister has upheld the Gorgon proponents' appeal of the Western Australia Environmental Protection Authority's June 2006 advisory bulletin that recommended against the Gorgon project's Environment Impact Statement and Environmental Review and Management Plan.

"Chevron welcomes today's announcement which reaffirms the Gorgon participants' belief that the project can proceed in an environmentally responsible way on Barrow Island," said Jay Johnson, managing director, Chevron Australia. "The venture participants remain committed to working with state and federal governments to ensure this nationally important project proceeds in an environmentally responsible way."

The Gorgon project proposal involves a two-train liquefied natural gas (LNG) plant and a domestic gas plant on Barrow Island, located off Australia's northwest coast, home to Australia's largest operating onshore oil field for more than 40 years.

Gorgon's environmental assessment was the result of more than three years' preparation and includes the research and contributions of more than 100 independent experts and extensive community consultation. Through this process, the project has refined a number of development designs, allowing equal or better environmental outcomes.

The Western Australia's minister for the environment has also provided a framework for environmental conditions. These conditions as well as environmental approval from the federal minister will need to be finalized before the project can proceed.

The Gorgon project is operated by the Australian subsidiary of Chevron in joint venture with Australian subsidiaries of ExxonMobil and Shell.

Chevron Corporation is one of the world's leading energy companies. With more than 55,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

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 about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: December 2006