press release

Chevron Press Release - Chevron Wins Right to Explore Huge Exploration Tract In Bangladesh

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SAN FRANCISCO, April 11, 2001 -- Chevron announced today that its wholly owned subsidiary, Chevron International Bangladesh Ltd., was awarded rights by the government of Bangladesh to explore a 6,880-square-kilometer onshore exploration tract east of Dhaka, the capital city. The new tract, designated Block 9, surrounds the Bakhrabad gas field and lies adjacent to other major gas-producing areas.

The award was officially finalized this week when the Bangladeshi government confirmed its acceptance of the terms of a joint-venture production-sharing contract. The other members of the joint venture are Texaco Exploration Asia Pacific Pathfinding Inc., Tullow Bangladesh Ltd., and Bangladesh Petroleum Exploration Company Ltd.

"Exploration for gas in Bangladesh is a growth opportunity for Chevron," said Richard Matzke, vice chairman and a director of Chevron Corp. "Bangladesh has sizable and growing needs for natural gas and successful exploration efforts in Block 9 would help Bangladesh meet this growing demand."

A seismic program is planned on Block 9, with drilling operations on the first of a three-well program to follow. Several existing gas pipelines cross the acreage, which means that new natural gas resources could be brought onstream quickly.

Peter Robertson, president of Chevron Overseas Petroleum Inc., said, "Chevron is encouraged about the potential of Block 9, and we expect to rapidly and safely develop and produce a reliable supply of natural gas to help satisfy Bangladesh's energy needs and provide for the country's long-term economic growth requirements."

Chevron, Texaco, and Tullow will each hold a 30-percent interest in the block with Bangladesh Petroleum Exploration Company Ltd. holding the remaining 10 percent.

In addition to the exploration and development of Block 9, Chevron brings additional expertise into the marketing arena through its affiliate, Caltex Corp. A leading refiner and marketer of petroleum products in the Asia Pacific region, Africa and the Middle East, Caltex is currently developing a plan to supply Bangladesh markets with lubricants later this year, and also has a team studying the feasibility of marketing liquefied petroleum gas (LPG). In the longer term, Caltex will evaluate the market for additional opportunities as and when they become available.

Notes to editors:

Chevron and Texaco each own 50 percent of Caltex Corp. Established in 1936, Caltex companies operate in more than 60 countries around the world. Caltex sales of petroleum products stood at 1.1 million barrels per day at year-end 2000.

Updated: April 2001