press release

ChevronTexaco and its Co-Venturers Sign Production Sharing Contract on Block-1 of Nigeria and São Tomé and Príncipe Joint Development Zone

Exploration Activities Expected to Commence Soon

LAGOS, Nigeria, Feb. 1, 2005 -- ChevronTexaco JDZ Limited, an affiliate company of ChevronTexaco Corp, today announced it has signed a Production Sharing Contract (PSC) with the Nigeria - São Tomé and Príncipe Joint Development Authority (JDA) on Block 1 in the Joint Development Zone (JDZ). The block, which will be operated by ChevronTexaco, was awarded in April 2004 following ChevronTexaco's successful $123 million bid. The PSC is expected to come into legal effect once remaining outstanding conditions have been met.

"We are very pleased to have reached this milestone," said Jay Pryor, Managing Director of ChevronTexaco's Nigeria/Mid-Africa upstream business unit. "The governments of Nigeria and São Tomé and Príncipe deserve much recognition for their leadership and foresight in establishing the JDZ which today has led to this first PSC signing. We are looking forward to working with our co-venturers, ExxonMobil and Dangote Energy Equity Resources, and the JDA in launching exploration activities in the block as soon as possible."

Jay Pryor also praised the two governments for their commitment to transparency and accountability. "The PSC provides for the public disclosure of payments made under the contract, in keeping with the transparent manner in which the bid round was conducted," he said. "We commend the governments of Nigeria and São Tomé and Príncipe for embracing these values and indicating their resolve and commitment to ensure a successful realization of a new standard of accountability. ChevronTexaco fully supports these efforts to ensure openness and public accountability in the development of oil and gas activities in the JDZ."

Pryor further noted that, as part of the company's commitment to local communities, ChevronTexaco is collaborating with the São Tomé and Príncipe government on a project designed to roll back malaria while also helping to develop programs to enhance HIV/AIDS prevention and awareness among the country's teenagers.

Block-1 is located approximately 190 miles (300 kilometers) north of the city of São Tomé in 5,700 feet (1,800 meters) of water. The consortium members are ChevronTexaco JDZ Limited (51%); Esso Exploration and Production Nigeria -São Tomé "One" Limited (40%) and Dangote Energy Equity Resources Limited (9%), (a Joint Venture between the Dangote Group of Nigeria and Energy Equity Resources AS of Norway).

Updated: February 2005