press release

ChevronTexaco Acquires Deepwater Acreage in Canada

SAN RAMON, Calif., Dec. 23, 2003 -- ChevronTexaco - along with joint-venture partners ExxonMobil Canada and Imperial Oil Resources - today announced that it acquired the exploration rights for eight deepwater parcels, resulting in a significant acreage position in the Orphan Basin region offshore Newfoundland.

The parcels cover more than 5 million acres in the unexplored Orphan Basin, which is located about 250 miles east-northeast of St. John's, Newfoundland and 155 miles north of the Hibernia oil field in water depths from about 6,500 to 8,200 feet. Ownership of the parcels is as follows: ChevronTexaco (through affiliate Chevron Canada Resources) 50 percent; ExxonMobil Canada, 25 percent; and Imperial Oil Ltd., 25 percent.

"This acquisition positions ChevronTexaco as a leading player in east coast Canada exploration as we continue to build a focused, high impact, global exploration program," said Ray Wilcox, president of ChevronTexaco Exploration and Production Co.

"Our purchase of these exploration rights is an indication of Chevron Canada Resource's ongoing commitment to Newfoundland and the Atlantic region," said Alex Archila, president of Chevron Canada Resources. "It also is evidence of the company's intention to continue its pursuit of attractive growth opportunities in Canada."

Based in San Ramon, Calif., ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 ChevronTexaco employees work in approximately 180 countries around the world, producing oil and natural gas and marketing fuels and other energy products.

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 the significance of the exploratory drilling for oil and gas in the Canadian Deep Water. 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 the results of the exploration program, local political events and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: December 2003