press release

ChevronTexaco Confirms Sale of Democratic Republic of Congo Subsidiary

SAN RAMON, Calif., Jul. 20, 2004 -- ChevronTexaco Corp. today confirmed the sale of its wholly owned subsidiary, Muanda International Oil Company (MIOC), in the Democratic Republic of Congo (DRC) to a subsidiary of Perenco (RDC) SA, a European independent exploration and production company. The sale closed on July 1, 2004.

MIOC holds a 50 percent interest in, and is operator of, the DRC's 390-square-mile offshore concession, from which a total of approximately 19,000 barrels of oil per day is currently produced from seven fields. The other concession partners are Teikoku, with 32.28 percent, and ODS Ltd., with 17.72 percent.

ChevronTexaco, through its subsidiary ChevronTexaco Oil Congo S.A.R.L., will retain an office in Kinshasa to handle ongoing business in the DRC and to consider potential new opportunities.

Commenting on today's announcement, George Kirkland, president of ChevronTexaco Overseas Petroleum, said: "This is the latest in a number of sales we have completed around the world as part of our drive to further enhance the quality of our portfolio and allow us to refocus resources and capital on core properties and future opportunities – including those in other parts of Africa – that can add the most value to ChevronTexaco."

Outlining ChevronTexaco's continued commitment to Africa, Kirkland went on to describe how, over the next five years, the company and its partners are set to invest more than $20 billion in Africa-related energy projects: "Africa remains an area of major strategic importance to ChevronTexaco and forms an integral part of our growth plans," he said.

Currently celebrating its 125th anniversary, ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 50,000 ChevronTexaco employees work 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

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 the sale of Muanda International Oil Company and ChevronTexaco's intentions to divest non-strategic assets and to invest in Africa-related energy projects. 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 include the ability of the company to divest non-strategic assets and realign business units according to plan; potential delays in the development, construction and start-up of planned projects; inability or failure of the company's joint-venture partners to fund their share of operating and development activities; technological changes; potential disruption or interruption of the company's development and operating activities due to war, accidents, political events, civil unrest or severe weather; and general domestic and international economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the 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 2004