press release

ChevronTexaco Confirms Partner Agreement on Nigeria Deepwater Block OPL 216

Agreement clears the way for planned activities towards the development of the Agbami Field

SAN RAMON, Calif., Jul. 14, 2003 -- ChevronTexaco today confirmed the announcement by The Nigerian National Petroleum Corporation (NNPC) that an agreement has been reached by NNPC; Famfa Oil Limited; ChevronTexaco affiliate, Star Deep Water Petroleum Limited; and Petroleo Brasiliero Nigeria Limited (Petrobras) that will govern future operations on the petroleum concession covered by OPL 216, offshore Nigeria. The agreement clears the way for planned activities towards the development of the Agbami Field.

Commenting on the announcement, George L. Kirkland, President, ChevronTexaco Overseas Petroleum Inc., said: "This agreement marks an important stage in the development of the Agbami Field, itself an important component of ChevronTexaco's growth strategy in West Africa. With our partners, we can now move forward in earnest towards our targets of first oil by 2007 and adding an eventual 250,000 barrels of oil per day to Nigeria's output during peak field production."

The Agbami partners will now move ahead immediately with the project bidding process, which will lead to the award of contracts for the provision of a Floating Production, Storage and Off-loading vessel and the construction and installation of sub-sea production facilities.

The Agbami Field ranks among the largest single discoveries in deepwater West Africa, with a structure spanning an area of 45,000 acres that straddles OPL 216 and OPL 217. The initial discovery well, announced in January 1999, encountered 420 feet of net pay in multiple zones. Produced hydrocarbons from the reservoir are light (45 degree API gravity) and sweet with no contaminants.

Note to Editors:

Partner interests in OPL 216 are: NNPC (50 percent); Star Deep (32 percent); Famfa (10 percent) and Petrobras (8 percent).

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 significance of an agreement reached by ChevronTexaco and its partners that will govern future operations on the petroleum concession covered by OPL 216 and the planned development activities of the Agbami Field. These statements are based on 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 our control and are difficult to predict. Among the factors that could cause actual results to differ materially are the successful and timely completion of the development activities for Agbami; ability of the partners to fund their share of development and operating activities; actual size of the Agbami Field; 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: July 2003