press release

Chevron Press Release - Chevron's Deep-water Program Aims To Add More Than 2 Billion Barrels

NEW ORLEANS, Nov. 5, 1997 -- Chevron's deep-water development program in the Gulf of Mexico is aiming to add more than 2 billion barrels in new oil reserves over the next 10 to 20 years, Peter J. Robertson, president of Chevron U.S.A. Production Co., today told the Tulane University Business Forum.

"The Gulf of Mexico's deep water is now considered one of the world's great frontiers and is luring companies from around the globe," said Robertson. "Not only has new technology reduced the cost of getting at these deep reserves, but the reservoirs themselves look much better than we had imagined."

Genesis, Chevron's first deep-water project in the Gulf, is expected to start producing oil at the end of 1998. As a sign of Chevron's commitment to development in the Gulf, the company has increased the number of deep-water leases it holds - from 16 at the beginning of the decade to 362 today. The company also has three deep-water drilling rigs under long-term contract.

Due to burgeoning deep-water development, annual oil-industry production from the Gulf is expected to increase 42 percent to 1.7 billion barrels over the next decade, said Robertson.

The full text of Robertson's speech can be found on Chevron's web site at: http://www.chevron.com in the Newsroom section.

Updated: November 1997