press release

ChevronTexaco Files Gulf of Mexico Offshore LNG Application

HOUSTON, Dec. 2, 2002 -- ChevronTexaco today announced it has submitted a Deepwater Port license application to the Department of Transportation, United States Coast Guard to construct and operate a Liquefied Natural Gas (LNG) receiving and regasification terminal in the U.S. Gulf of Mexico (GOM).

The development, also known as Port Pelican, would consist of an LNG ship receiving terminal, LNG storage and regasification facilities, and pipeline interconnection to existing infrastructure to deliver natural gas into the United States interstate gas pipeline network.

Audie Setters, general manager of ChevronTexaco Overseas Petroleum's International Gas Group, said the Port Pelican project is evidence of ChevronTexaco's long-term commitment to supplying safer, cleaner and more efficient sources of energy to North America. "We are excited about the prospects for growth of the natural gas business and this LNG receiving and regasification terminal is integral to the company's larger natural gas strategy," he added.

ChevronTexaco plans to construct phase one of Port Pelican as an offshore facility, initially designed to process approximately 800 million standard cubic feet of gas per day (MMSCFD). The facility would connect to ChevronTexaco's extensive offshore infrastructure to deliver natural gas to the United States Gulf Coast. Using existing gas supply and gathering systems in the Gulf of Mexico and Southern Louisiana, gas would then be delivered to shippers using the national pipeline grid. Phase two would expand the terminal to accommodate a total of 1600 MMSCFD.

A significant volume of natural gas would be provided for power generation, industrial and residential markets in the U.S., as a result of Port Pelican.

The design codes and standards applicable to Port Pelican construction and operation will meet or exceed the accepted industry practice for offshore facilities, concrete construction, and LNG regasification processing, including U.S. and European standards.

ChevronTexaco's application was filed as a result of completing a sixteen month technical and commercial evaluation of a LNG receiving and regasification terminal in the GOM.

It is estimated the first phase of the facility would be operational by 2006.

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 liquefied natural gas (LNG) operations in the U.S. Gulf of Mexico and the company's intention to construct and operate a LNG receiving and regasification terminal that are based on management's current expectations, estimates and projections. These statements 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 success of the company's Deepwater Port license application to the Department of Transportation, United States Coast Guard; potential delays in the construction or start-up of the planned projects; 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: December 2002