press release

ChevronTexaco de Mexico Receives Authorization from SEMARNAT for an Offshore Natural Gas Import Terminal in Baja California, Mexico

This is news concerning ChevronTexaco provided by a ChevronTexaco subsidiary, Chevron de Mexico, and archived here for record purposes.

TIJUANA, B.C., MEXICO, Sep. 17, 2004 -- ChevronTexaco de Mexico issued the following statement to confirm that it was awarded authorization from the Environment and Natural Resources Secretariat (SEMARNAT) for its Environmental Impact Assessment (Manifestación de Impacto Ambiental, or MIA) and Risk Assessment for a proposed natural gas receiving and regasification terminal off the coast of Baja California, Mexico.

ChevronTexaco de Mexico Vice President Carlos Atallah said: "ChevronTexaco de Mexico is pleased to have received authorization for an environmental permit for its proposed natural gas import terminal. This authorization represents a major step in gaining approval for the project to be able to provide clean natural gas to meet the growing demand for energy in the region.

"We have been following a regulatory framework that is well defined, comprehensive and transparent and express our appreciation to all of the Mexican agencies and regulators involved for their support. We are particularly impressed with their thoroughness, professionalism and cooperative approach. Our project team is committed to addressing any conditions outlined in this authorization and we are working with environmental experts to assist with any such requirements.

"ChevronTexaco continues to make progress with the other permits required for the project, and we are committed to working with the representative groups of the Baja California community to address their questions and concerns," said Atallah.

ChevronTexaco's proposed natural gas import terminal is to be located approximately 13 kilometers (8 miles) off the coast of Baja California on a sandy sea bottom away from rock habitat. It is ideally located far away from population centers and naturally sheltered from storms while maintaining a buffer distance from the Coronado Islands. The terminal also is aligned strategically to connect to existing natural gas transmission systems.

The terminal is being designed to international environmental and safety standards and every effort is being made to minimize any environmental impact. It is expected to process up to 1,400 million standard cubic feet of natural gas per day.

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 ChevronTexaco's plans for a liquefied natural gas receiving and regasification terminal offshore Baja California. The 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 the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are the success and timing of securing additional necessary approvals and permits for the construction and operation of the terminal; actual future demand for natural gas demand in Mexico and North America; timely construction and start up of the terminal offshore Baja California, and local 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: September 2004