press release

ChevronTexaco Awarded Promising New Acreage Adjacent to Existing Production Offshore Thailand

Block G4/43, Gulf of Thailand

This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, Chevron Offshore (Thailand) Ltd., and archived here for record purpose.

BANGKOK, Jul. 17, 2003 -- ChevronTexaco announced today that the Royal Thai Government has awarded ChevronTexaco rights to explore Block G4/43 -- promising new acreage adjacent to the company's Block B8/32 production operations in the Gulf of Thailand.

Chevron Offshore (Thailand) Ltd., a unit of ChevronTexaco Corporation's Asia South business unit, was awarded rights to explore and produce petroleum from Block G4/43, an approximately 9,600 square kilometer (approx. 3,700 square miles) tract next to the western boundary of Block B8/32. The license was awarded to ChevronTexaco by the Thai Government as part of the country's 18th licensing round. ChevronTexaco will operate the block and hold an 85 percent interest; the remaining 15 percent interest was awarded to PTTEP International Limited (PTTEPI), a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP).

George Kirkland, president, ChevronTexaco Overseas Petroleum Inc., said, "Acquisition of Block G4/43 is further demonstration of ChevronTexaco's strategy to grow the value of its business in Thailand and the region. We are pleased to be awarded this opportunity, and we are appreciative of the confidence the Government of Thailand continues to show in our exploration and production capabilities. Our objective is to continue to develop oil and gas resources in the safest, most cost-effective manner, thereby realizing maximum benefits for our shareholders, our partners, and the Government and the people of Thailand."

Isikeli Taureka, managing director of Chevron Offshore (Thailand) Ltd., said, "ChevronTexaco is very pleased to work with PTTEP. The combined strength of the two companies will bring the best business results for all concerned."

He added, "The proximity of the new tract to the company's Block B8/32 operations might allow discoveries to be tied into existing production facilities."

Block G4/43 lies on the west flank of the Pattani Basin in the Gulf of Thailand, about 125 miles south of Bangkok. The block is in shallow water with a depth of approximately 250 feet (76 meters).

Block G4/43 increases ChevronTexaco's gross holdings in the northern Gulf of Thailand to nearly 29,000 square kilometers (over 11,000 square miles), and expands the company's exploration effort into an area with potential for oil and gas.

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 Block G4/43 in the Gulf of Thailand. 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. Among the factors that could cause actual outcomes to differ materially are the results of the exploration program for Block G4/43 and general economic conditions. 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: July 2003