press release

ChevronTexaco and BG Agree to Sell Natural Gas to U.S. Market

This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, ChevronTexaco Latin America Upstream, and archived here for record purpose.

Atlantic LNG to Process Gas from Dolphin Deep and Starfish Fields

CARACAS, VENEZUELA, Aug. 21, 2002 -- ChevronTexaco and partner BG have received approval from the Ministry of Energy and Energy Industries for development of Dolphin Deep and Starfish fields offshore Republic of Trinidad and Tobago. These fields will supply a long term liquefied natural gas (LNG) contract with El Paso Merchant Energy to import LNG into the U.S. market.

The natural gas produced from the recently discovered fields will be processed at the Atlantic LNG third-train facility, now under construction.

Under the terms of the agreements, 80 million cubic feet per day (MMCFD) of natural gas will be delivered to Southern LNG's Elba Island re-gasification terminal in Georgia beginning in 2005 and continuing through 2023.

"These agreements reflect our company's plans to expand and monetize our gas resources worldwide," said George Kirkland, president of ChevronTexaco Overseas Petroleum. "They also demonstrate our commitment to ChevronTexaco's natural gas growth strategy and will enable us to build a long-term business that benefits the company, our partners and our host governments."

"This agreement and the marketing plan support our worldwide gas strategy and provide a firm basis for our further investment in Trinidad and Tobago," said Ali Moshiri, director of ChevronTexaco Upstream Latin America.

Currently in Trinidad, ChevronTexaco produces approximately 250 million cubic feet of gas per day from the east-coast offshore Dolphin field, and sells the production to the Trinidad National Gas Company for domestic use. This field, which started producing in 1996, is also a 50/50 joint venture with BG.

ChevronTexaco's links with Trinidad date back to 1913. In 1951, the company acquired the Antilles Company and consolidated its interests under Texaco Trinidad Inc.

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 development of the Dolphin Deep and Starfish fields offshore Republic of Trinidad and Tobago and other potential future investments in the Republic. These statements are based on current expectations, estimates and projections. The statements included in this release are not guarantees. Actual outcomes and results could differ materially from what is expressed or forecasted in these forward-looking statements.

Updated: August 2002