press release

ChevronTexaco Given Green Light to Build First Offshore LNG Terminal in the United States

Port Pelican Receives Approval for Deepwater Port License

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SAN RAMON, Calif., Nov. 17, 2003 -- ChevronTexaco Corp. today announced that its subsidiary, Port Pelican LLC, has received approval for a Deepwater Port License from the Maritime Administration of the Department of Transportation to construct, own and operate an offshore liquefied natural gas (LNG) receiving and regasification terminal, to be located approximately 40 miles off the Louisiana coastline in the Gulf of Mexico.

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

John Gass, president of ChevronTexaco Global Gas, said, "Port Pelican is a key element of our LNG strategy and provides a viable solution to commercialize our large natural gas resources. The achievement of this milestone, in conjunction with our recent announcement of a proposed offshore LNG terminal in Baja California, Mexico, is yet another demonstration of ChevronTexaco's commitment to building an integrated, global natural gas business."

The proposed offshore LNG terminal will be constructed using a freestanding concrete Gravity Based Structure (GBS), along with mechanical regasification facilities capable of handling 1.6 billion standard cubic feet of gas per day. The company anticipates beginning construction of the GBS in 2004. Commissioning is projected for 2007, followed by start-up operations.

Richard Lammons, vice president of Port Pelican LLC, said, "This is a positive example of industry and government working together to ensure the energy infrastructure is in place to meet the growing demand for natural gas in North America. Just as we successfully worked through the regulatory process, led by the U.S. Coast Guard and Maritime Administration, we look forward to continuing to build strong relationships with government agencies, the community and contractors to ensure a successful, safe and environmentally sound project."

ChevronTexaco recently awarded major contracts for front-end engineering design and is currently securing LNG supplies through Port Pelican.

Port Pelican will be the first Deepwater Port in the U.S. since the 1976 Louisiana Offshore Oil Port, and will be the first natural gas deepwater port in the world.

Based in San Ramon, Calif., ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 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 one of the world's largest producers and marketers of natural gas, producing approximately 4.4 billion cubic feet of natural gas a day in countries including the United States, Australia, Angola, Denmark, Nigeria, the United Kingdom, Thailand, Trinidad, Canada, Colombia, Indonesia, Norway, Kazakhstan, Venezuela and the Philippines.

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 Chevron Texaco's plans for construction and operation of the Port Pelican liquefied natural gas receiving and regasification terminal to be located 40 miles off the Louisiana coastline in the Gulf of Mexico. 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 timely construction and commissioning of the facilities; actual growth of natural gas demand in North America; 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: November 2003