press release

ChevronTexaco Establishes Multimillion-Dollar Strategic Research Alliance in Australia

Global scope to benefit ChevronTexaco's worldwide operations

SAN RAMON, Calif. and PERTH, Australia, April 7, 2005 -- ChevronTexaco Corporation today announced the establishment of an agreement between The Western Australian Energy Research Alliance (WAERA) and ChevronTexaco Australia Pty Ltd to undertake petroleum industry research, technology development, and education and training projects. The work from the strategic alliance is expected to benefit ChevronTexaco's Australian and worldwide operations.

The agreement was to be signed later today by ChevronTexaco Australia Managing Director, Jay Johnson and representatives of WAERA at a ceremony held in Perth, Australia.

The alliance will provide for the development of multiple research projects with an investment target by ChevronTexaco of up to AUD $5 million per annum. The alliance will be known as the Western Australian Alliance for Advanced Energy Solutions.

ChevronTexaco Overseas Petroleum President John Watson said, "Australia is an important area for the company as it grows an integrated global gas business. This agreement underscores the company's long-term commitment to developing Australia's offshore oil and gas resources and to using research to enhance the safety and efficiency of our operations, remaining at the leading edge of technology.

"We foresee some of the alliance's mandate coming from ChevronTexaco affiliates outside Australia. We expect this will have a direct benefit and long-term impact on our worldwide operations," said Watson.

Commenting on the agreement Johnson said, "The alliance is expected to add value for ChevronTexaco and Australia by enhancing Australia's world-class energy industry research and development capabilities and is representative of the company's partnership approach to doing business."

The alliance plans to coordinate research and development and leverage more effectively the capabilities of WAERA's three joint-venture research institutions: CSIRO (Commonwealth Scientific Industry and Research Organisation, Australia's federal government research and development agency), the University of Western Australia and Curtin University of Technology.

Johnson said short- and long-term projects initially would focus on oil and gas exploration and development; hydrocarbon processing; industry-related health, safety and environmental issues; and education and training initiatives.

"The new technologies and new applications of existing technologies that we hope to develop and deploy is expected to further improve our business in areas of particular relevance to our interests in Australia, such as deepwater seismic acquisition and interpretation; the drilling and production of high volume large bore wells; remote subsea production systems; and carbon dioxide capture and long-term containment," he said.

Future research also could support the development of emerging technologies, such as those associated with the hydrogen economy.

WAERA Chairman Gordon Martin said the launch of the research alliance with ChevronTexaco enhances WAERA's growing reputation as one of the world's leading energy research centers.

"WAERA's primary role is to help the energy industry maximise its sustainability by improving outcomes at all stages of the upstream supply chain, from exploration to production," Martin said.

"This alliance with ChevronTexaco is an extremely positive step on our path towards establishing Perth, Western Australia as well as Australia as globally recognised and valued hubs for energy research and technology development."

About ChevronTexaco

ChevronTexaco Corporation is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at chevrontexaco.com

About ChevronTexaco Research

The Western Australian Alliance for Advanced Energy Solutions is the most recent relationship formed as part of ChevronTexaco's strategy to develop unique new research and educational structures in the energy industry.

ChevronTexaco recently has joined with the Los Alamos National Laboratory, operated by the University of California, to establish a range of mutually beneficial technologies, the University of Tulsa to form the Center of Research Excellence in production fluid flow; the University of Southern California to set up the Center of Interactive Smart Oilfield Technologies; and the Colorado School of Mines in the Center of Research Excellence in Earth Science.

About ChevronTexaco in Australia

ChevronTexaco is an international leader in finding, producing and marketing oil and gas as well as other energy products. From its Australasian headquarters in Perth, the company manages its interests in the North West Shelf Venture LNG project in Western Australia and the Malampaya Deep Water Gas Project in the Philippines. Operations include oil production on Barrow and Thevenard Islands in Western Australia, and leadership of the Gorgon joint venture that is working to develop substantial gas resources in the Greater Gorgon Area offshore Western Australia.

About the Western Australian Energy Research Alliance (WAERA)

WAERA is an alliance between CSIRO (Commonwealth Scientific Industry and Research Organisation), Curtin University of Technology and the University of Western Australia providing quality research, technology-based solutions, and education and training services to the global energy industry. Based at Perth's Technology Park, WAERA provides a single entry point to Australia's leading researchers.

Updated: April 2005