press release

Chevron Press Release - Chevron Wins Promising New Acreage In Brazil's Deepwater Santos Basin

SAN FRANCISCO, June 9, 2000 -- Chevron achieved a milestone in its ongoing efforts to grow its interests in the Brazilian oil sector as the company was top bidder for offshore block BM-S 7, a promising exploration tract in the Santos Basin, the company said today.

Chevron Overseas Petroleum Brasil Ltda. won a 65 percent interest in BM-S 7 and will serve as operator. The remaining 35 percent interest is held by Petrobrs. The Brazilian National Petroleum Agency is expected to formalize assignment of Chevron's 65 percent stake within the next few weeks.

Winning the competition to explore BM-S 7 bolsters Chevron's position in the Brazilian deepwater exploration race. The new acreage is a significant addition to Chevron's Brazilian portfolio - begun in January 2000 when it won rights to partner with Petrobrs in a 50/50 exploration venture in two deepwater blocks in Brazil's prolific SBasin.

William Edman, president of Chevron Latin America, expressed the company's pleasure with its new acreage, saying, "The potential for significant discoveries in this area provides an excellent investment for shareholders of Chevron and Petrobrs. We are delighted to once again be in partnership with Petrobrs and to be able to combine our individual company strengths to create a formidable team."

The BM-S 7 tract covers 6,591 square kilometers in water depths of 100 to 800 meters (328 to 2,625 feet).

Chevron Overseas Petroleum Brasil Ltda. was also the successful bidder for BM-S 10, another promising exploration tract in the Santos Basin. Chevron will hold a 25 percent interest in BM-S 10 and will join Petrobrs (operator) and BG International to explore the acreage, which spans a 3,780 square-kilometer area and lies in water depths of 1,600 to 2,100 meters (5,250 to 6,890 feet).

Peter Robertson, president of Chevron Overseas Petroleum, said, "I'm delighted with our success. Within a matter of months we've built a substantial portfolio of exploration interests offshore Brazil. This provides a firm foundation on which to grow our upstream business there and clearly demonstrates our commitment to being a significant player in the development of Brazil's oil and gas resources. We are honored to be pursuing these opportunities in partnership with Petrobrs."

Note to Editors:

In January, Chevron Overseas Petroleum Brasil Ltda. won rights to partner with Petrobrs in a 50/50 exploration venture in two promising offshore deepwater blocks in Brazil's prolific SBasin: Block BC-20, a 2,061-square-kilometer area in the Campos Basin, and Block BCUM-100, which covers a 4,238-square-kilometer area in the Cumuruxatiba Basin.

Updated: June 2000