press release

ChevronTexaco and Ecopetrol Sign an Extension Agreement for the Guajira Area A Association Contract in Colombia

Agreement Allows for the Further Development of Natural Gas Reserves

SAN RAMON, Calif., Dec. 15, 2003 -- ChevronTexaco's Colombia subsidiary, ChevronTexaco Petroleum Company, and Ecopetrol, the Colombian national oil company, today signed an agreement to extend their existing Guajira Area A Association contract and continue natural gas production activities in the northeastern coastal region of the country. The two companies each own a 50 percent interest in the existing contract, which is set to expire at the end of 2004.

The extension agreement allows ChevronTexaco to continue its equity participation beyond 2004. Under the new contract, ChevronTexaco will hold a 43 percent interest in exchange for financial and technical benefits to Ecopetrol, which will hold the remaining 57 percent interest.

"ChevronTexaco is committed to Colombia and is pleased to have the opportunity to continue a relationship that has existed for more than 75 years," said George Kirkland, president of ChevronTexaco Overseas Petroleum. "We are proud of our history and contribution to the country through the production of energy, creation of jobs and the development we have brought to the Guajira region. This agreement allows us to maximize, and potentially grow, the value of our base natural gas business in Colombia for ChevronTexaco and our partner, Ecopetrol."

The extension agreement is for the commercial life of the fields and provides the framework for further investment to develop and produce the remaining natural gas reserves in the contract area.

ChevronTexaco Petroleum Company and Ecopetrol currently produce more than 80 percent of the natural gas consumed in Colombia. The gas comes from Chuchupa, the country's only offshore field, and Ballena, an onshore field located in Guajira State. Together these fields produce approximately 500 million cubic feet of gas a day.

The Guajira Extension contract replaces the Incremental Catalina Contract signed between ChevronTexaco and Ecopetrol on Feb. 8, 2003. The Guajira Extension contract was developed in conjunction with Ecopetrol in response to the Government of Colombia's determination that contract extensions are the correct approach for the type of activities contemplated for the contract area.

ChevronTexaco's history in Colombia dates back to the late 1920s, when the company began exploration activities. Today, ChevronTexaco operates the Ballena and Chuchupa fields. ChevronTexaco is active in the retail gasoline marketing industry in Colombia where there are 310 Texaco-branded service stations. In addition, through a joint venture, ChevronTexaco provides jet fuel to Colombia's major airports.

About ChevronTexaco

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.

This news release contains forward-looking statements about the signing of an agreement by ChevronTexaco for incremental production of natural gas from the Guajira region of Columbia and the significance of the agreement. Words such as "anticipates," "expects," "intends," "plans," "targets," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based on 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 evaluation of the options for the project's development, 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 this 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.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. The term "natural gas reserves" is used in this press release and is not permitted to be included in documents filed with the SEC.

Updated: December 2003