press release

ChevronTexaco Announces Downstream Restructuring and New Management Team

SAN RAMON, Calif., Jul. 14, 2003 -- ChevronTexaco Corp. today announced plans to restructure its global refining and marketing organization in order to lower costs, improve efficiency and achieve sustained improvements in its financial performance. The company will shift from a geographical to a functional structure with four operating divisions. The new organization will be fully operational by early 2004.

The company today also introduced its new Global Downstream management team under the leadership of Patricia A. Woertz, executive vice president, Global Downstream:

  • Global Refining - President, Jeet S. Bindra
  • Global Supply and Trading - President, Michael K. Wirth
  • Global Marketing - President, S. Shariq Yosufzai
  • Global Lubricants - President, Mark A. Nelson

Commenting on the new structure, David J. O'Reilly, ChevronTexaco chairman and chief executive officer, said, "While we are seeing improved performance across our company, we must continue to strengthen our businesses to accomplish our objective of being the leader in total stockholder return. This new downstream organization will enable us to achieve the additional improvements needed to build a truly competitive refining and marketing business."

Woertz added, "We have established as our goal the transformation of our global downstream into one that is competitive everywhere we do business. We are confident that a functional alignment will bring us greater efficiencies in this extremely competitive sector. The management team assembled for this new organization is prepared to take a solid downstream business -- featuring our strong brands -- and transform it into a great one."

In connection with these moves, the company also announced that Jim R. Hawn, president of Europe/West Africa Products; J. Carey McHugh, president of Latin America Products; Jock D. McKenzie, president of Asia/Middle East/Africa Products; and C. Michael Bandy, president of Global Trading, Fuel and Marine Marketing, will retire from ChevronTexaco by early 2004.

In addition, David C. Reeves, currently ChevronTexaco's president of North America Products, has been named managing director and chief executive officer of Caltex Australia Limited, replacing Jeet S. Bindra, effective Aug. 11, 2003. Matthew J. Foehr, currently vice president of Finance for North America Products, has been named vice president of Finance for the new Global Downstream organization.

These leaders will work together with the new functional leadership team to ensure a transition that minimizes potential disruptions or distractions for employees, customers, vendors and suppliers.

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.

Notes to Editor:

  • The current titles of the new downstream management team are - Jeet S. Bindra is currently managing director and chief executive officer of Caltex Australia Limited; Michael K. Wirth is currently acting president, Asia/Middle East/Africa Products; S. Shariq Yosufzai is currently president, Global Lubricants; Mark A. Nelson is currently adviser to the Executive Vice President, Global Downstream.
  • ChevronTexaco's global refining network comprises 23 wholly owned and joint-venture facilities and has the capacity to refine more than 2 million barrels per day.
  • The company sells more than 2 million barrels of gasoline and diesel per day through over 24,000 retail outlets under Chevron, Texaco and Caltex brands.
  • Global Trading buys and sells more than 6 million barrels of crude oil and refined product per day on behalf of ChevronTexaco.
  • The Global Lubricants business markets a full line of more than 3,500 lubrication and coolant products including Havoline®, Delo®, Ursa® and Revtex®.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

This press release contains forward-looking statements relating to the proposed restructuring of ChevronTexaco's global refining and marketing organization and its anticipated benefits of increased operating efficiencies and improved competitiveness. The statements are based on management's current expectations, estimates and projections; are not guarantees of future occurrences or 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 possible delays in completing the proposed restructuring; future actions of the company and competitors in response to changes affecting supply and demand for refined products; technological developments; actions of government or other regulatory bodies in areas where the company conducts its refining and marketing business; potential disruption or interruptions at the company's manufacturing facilities due to accidents, severe weather or war; and the effects of U.S. or international economic or political 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: July 2003