press release

ChevronTexaco Expands Interests in Kazakhstan - Opens Polyethylene Pipe Plant in Atyrau

ALMATY, KAZAKHSTAN, April 4, 2003 – ChevronTexaco today announced the opening of its $20 million polyethylene pipe plant in Atyrau, Kazakhstan. The plant, which will produce pipe that meets international standards, represents an expansion of ChevronTexaco's commitment to Kazakhstan where it currently has interests in the Tengiz, Karachaganak, and North Buzachi oil and gas fields; the Caspian Pipeline; and retail and lubricants marketing businesses.

The polyethylene pipe will help support the development of new and existing infrastructure in the Republic of Kazakhstan and in neighboring countries well into the future.

Guy Hollingsworth, managing director of ChevronTexaco, Eurasia, said, "I am very excited about the potential this plant brings to Kazakhstan as it represents a small, yet very important step in the future industrial diversification of Kazakhstan."

Hollingsworth added, "ChevronTexaco is a reliable and competent partner. With more than 40 years of experience in polyethylene pipe production, ChevronTexaco is widely known as a producer of goods of excellent quality and a highly professional provider of technical information, services and consulting."

The project also represents ChevronTexaco's commitment to the Republic of Kazakhstan's local content and import substitution initiatives, as well as to the training and development of Kazakhstani people.

During construction, Kazakh citizens filled about 75 percent of the 300 jobs and the vast majority of subcontractors were Kazakh companies. In addition, 100 percent of the approximately 100 polyethylene pipe plant employees and contractors are Kazakh. The plant work force is highly qualified with national specialists experienced in oil and petrochemical industries in both Kazakhstan and with Western companies. Specialists have also trained in the U.S. and Mexico.

The plant is equipped with state-of-the-art equipment and technology and can produce up to 7,000 tons per year of various sizes of high-density polyethylene pipe. The pipe diameters will vary from 32 to 630 mm, and various wall thickness (SDR 9-26) and nominal pressure up to 16 atmospheres.

The pipes are both lightweight and extremely durable. With a high resistance to corrosion and chemical activity along with an ability to expand in cold weather conditions, they offer an environmental advantage over traditional pipes made of steel.

Additionally, there are no hazardous materials used to make the pipe, and no emissions from the pipe making process that are harmful to people or the environment. The applications for the polyethylene pipe are numerous including non-corroding pipe for water delivery and low- pressure gas distribution, fuel and sewage lines, storm drains and transportation for hazardous waste.

Hollingsworth also noted, "I'm very proud of our pioneering beginnings at Tengizchevroil ten years ago, and I am similarly proud that ChevronTexaco is the company to breathe life into this new venture. The plant is fully owned and operated by ChevronTexaco and will build on the solid foundations of our existing assets in the Republic of Kazakhstan.

ChevronTexaco is a leader in the global energy business with wide-ranging activities in more than 180 countries. ChevronTexaco is the fourth-largest energy company in terms of global oil and gas reserves (more than 11.5 billion barrels of oil and gas equivalent) and oil and natural gas production (2.6 million barrels of oil and gas equivalent per day). It has the capacity to refine more than 2 million barrels per day, sells more than 5 million barrels of fuel and products daily and owns or has interest in more than 25,000 retail outlets under Chevron, Texaco and Caltex brands.

Read more about the opening ceremony for the polyethylene pipe plant.

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 opening of the polyethylene plant in Atyrau, Kazakhstan. 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 actual performance of the equipment and technology in the plant; quality of the pipe and its performance under local physical conditions; actual effects of the operation of the plant on local environmental conditions; local and general economic conditions; and local political events. 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: April 2003