press release

ChevronTexaco and Partners, Statoil, OMV and DONG, Announce Oil and Gas Discovery Offshore United Kingdom

SAN RAMON, Calif., Dec. 8, 2004 -- ChevronTexaco Corporation today announced that its United Kingdom subsidiary and its partners, Statoil, OMV and DONG, have made a significant oil and gas discovery at the offshore Rosebank/Lochnagar well (213/27-1Z) in the Faroe-Shetland Channel.

The well, located in 3,600 feet (1,100 meters) of water and completed on August 30, 2004, encountered two oil and gas accumulations for a total net pay of 169 feet (52 meters) with oil quality ranging from 27-36 degrees API. Non-associated gas was also encountered in the shallower reservoir. The well, which was not tested, has been plugged and abandoned at a total depth of 12,153 feet (3,607 meters). Further drilling will be carried out to fully appraise the find.

George Kirkland, president of ChevronTexaco Overseas Petroleum, said, "This discovery positions the company for continued growth in the region and further underscores our corporate exploration strategy of focusing on core, high-impact opportunities around the world."

Gary Luquette, President and Managing Director for ChevronTexaco Upstream Europe, said, "We are extremely encouraged by the well results. This is an exciting opportunity and endorses our company's continued commitment to exploration in the Atlantic Margin test area and ongoing investment on the UK Continental Shelf." Luquette also noted that the well was drilled with a strong focus on safety and environmental protection by the "West Navigator" drill ship.

In keeping with ChevronTexaco's strong views on environmental stewardship and habitat integrity, the West Navigator's deepwater Remotely Operated Vehicle was used to obtain high quality scientific information before, during and after drilling operations. A public report will be produced on the findings to contribute to the scientific community's ecological understanding of this little known deep water environment.

Notes to Editors:

  • Blocks 213/26 & 213/27 were awarded under licence P1026 to ChevronTexaco subsidiary, Texaco North Sea U.K. Company (100%), under the UK 19th Licensing Round in 2001.
  • DONG, OMV and Statoil farmed into the licence before the first exploration well was drilled.
  • The drilling location lies in the Faroe-Shetland Channel, close to the UK/Faroes median line and approximately 126km from the closest coast (Esha Ness on Shetland).
  • The West Navigator's deepwater Remotely Operated Vehicle (ROV) was used to obtain high quality scientific information before, during and after drilling operations. The ROV, fitted with a high resolution video camera, enabled the collection of video footage, photographic stills as well as a targeted collection of specimens for subsequent identification by deepwater scientific experts. The identification process is still underway, but will enable ChevronTexaco to contribute to the scientific community's ecological understanding of this little known deep water environment. The results of the survey will culminate in a report to be distributed to statutory bodies within the UK and the National Museum of Scotland in Edinburgh.

Partners:

ChevronTexaco (Operator) 40%
Statoil (U.K.) Limited 30%
OMV (U.K.) Limited 20%
DONG (UK) Limited 10%

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 ChevronTexaco's Rosebank/Lochnagar discovery and its significance to the company's exploration and investment strategy . 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 changes in demand for and prices of crude oil and natural gas, the results of additional drilling and testing, results of evaluation of development alternatives, 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.

Updated: December 2004