press release

ChevronTexaco Announces Deepwater Oil Discovery in the Shared Angola/Congo Zone

SAN RAMON, Calif., Oct. 12, 2004 -- Chevron Overseas Congo Ltd, a subsidiary of ChevronTexaco Corp., and its partners today announced a significant discovery at the Lianzi-1 exploration well in the deepwater area between the Republics of Angola and Congo.

The discovery, in the shared 14K/A-IMI Unit, is on the same stratigraphic trend as previous Block 14 deepwater crude oil discoveries at Landana (1998) and Tombua (2001) in Angola.

The Lianzi-1 exploration well was drilled in 909 meters (2,984 feet) of water. The well encountered two oil bearing reservoirs and a drill stem test of one of the intervals flowed at a rate of more than 5,000 barrels of oil per day (40º API) on 40/64 inch choke.

George Kirkland, president of ChevronTexaco Overseas Petroleum, said, "The Lianzi discovery is yet another addition to a number of excellent deepwater prospects in the region. These discoveries will provide a series of developments in the future and fuel production growth. This discovery speaks to the success of our strategy of focusing our exploration program on core, high-impact opportunities."

Jim Blackwell, managing director of ChevronTexaco's Cabinda Gulf Oil Company said, "We've long been optimistic about the exploration opportunities in the 14K/A-IMI shared unit and this find helps to justify that optimism. The next step will be to complete several geologic and engineering studies to fully assess the field's size, reserves potential and possible development options."

The shared unit covers the combined portions of "14K," Angola's deepwater prospect lying within the limits of the Block 14 concession, and the "A-IMI" prospect, lying within the limits of the Congo's Haute Mer permit, incorporating the area along the maritime border between the two countries. This Unitization zone of 696 square kilometers (269 square miles) is a result of protocol and participation agreements signed by Angola and Congo in September 2001 and March 2002, respectively. The two countries agreed to share revenues equally (50/50) for each block (Haute Mer and Block14).

ChevronTexaco, through its affiliate companies, holds a total interest in the block of 30.5 percent and Chevron Overseas Congo Ltd. is the Operator of the 14K/A-IMI Unit. Other participants in the two blocks include:

Chevron Overseas Congo Ltd - Operator 15%
Cabinda Gulf Oil Company Limited (CABCOG) 15.5%
SONANGOL P&P 10%
SNPC 7.5%
Total E&P Congo 25.5%
Total E&P Angola 10%
ENI Angola, 10%
GALP Exploração 4.5%
Energy Africa 2.0%

Currently celebrating its 125th anniversary, ChevronTexaco is one of the world's leading energy companies. With more than 50,000 employees, ChevronTexaco conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at chevrontexaco.com

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 Lianzi-1 exploration well. The statements are based on management's current expectations, estimates and projections; is not a guarantee of future performance; and is subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. You should not place undue reliance on this forward-looking statement, 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: October 2004