press release

ChevronTexaco and ConocoPhillips Agree on Partnership in Block 2 of Plataforma Deltana

ConocoPhillips to Acquire 40 Percent Interest; ChevronTexaco Holds 60 Percent and Operatorship; Both Companies will be Working in Collaboration with PDVSA

View this press release in Spanish.

CARACAS, VENEZUELA, June 4, 2003 -- ChevronTexaco and ConocoPhillips announced today their partnership in the exploration and development of Block 2 of the offshore Plataforma Deltana in Venezuela. The block was awarded to ChevronTexaco by the Venezuelan Ministry of Energy and Mines in February.

Under the terms of the agreement, ConocoPhillips acquires a 40 percent interest in the block, while ChevronTexaco remains majority partner with a 60 percent interest and will be the operator. PDVSA, the Venezuelan state-owned oil and gas company, retains the right to acquire up to 35 percent of the project at the time of declaration of commerciality.

The natural gas produced from the fields will be processed into liquefied natural gas (LNG) and subsequently exported to markets in the United States.

"This agreement combines the already considerable experience in Venezuela of two world-class companies," said George Kirkland, president of ChevronTexaco Overseas Petroleum. "This project is part of ChevronTexaco's strategic plans to commercialize its existing natural gas resource base and enable the creation and development of new natural gas growth opportunities worldwide."

Both ChevronTexaco and ConocoPhillips participate in major projects in the Orinoco Belt. ChevronTexaco also operates the Boscan and LL-652 fields in western Venezuela, and ConocoPhillips is operator on behalf of its partners in the Gulf of Paria West block.

"ConocoPhillips was the logical choice for us as partner in Block 2. Their existing reserves in the vicinity, extensive LNG experience worldwide and the strong position of both companies in the U.S. natural gas market make us a very powerful team," said Ali Moshiri, managing director of ChevronTexaco Upstream Latin America."

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 Plataforma Deltana block offshore Venezuela 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: June 2003