press release

ChevronTexaco in Discussions with Somerfield to Sell UK Service Stations

SAN RAMON, Calif., Feb. 16, 2005 -- ChevronTexaco Global Marketing today announced that Texaco Ltd., a UK subsidiary of ChevronTexaco Corp., and Somerfield plc, the fifth-largest food retailer in the UK, have signed a Memorandum of Understanding (MOU) on an exclusive basis to negotiate the sale of approximately 140 Texaco-owned service stations in the United Kingdom to Somerfield.

The proposed agreement is part of ChevronTexaco Global Downstream's strategic direction to improve returns by focusing on areas of strength and enhancing and managing three world-class brands – Chevron, Texaco and Caltex. As part of this strategy, Texaco Ltd. is reducing capital invested in certain retail assets. Following the proposed sale, Texaco will maintain a marketing presence in the United Kingdom as a branded wholesaler, supplying fuel to 1,100 Texaco-branded third-party service stations, one of the largest branded fuel networks in the country.

Under the proposed agreement, Texaco would continue to supply the approximately 140 Somerfield-owned service stations with fuel, and the forecourts would still be branded Texaco. The convenience stores would operate under the Somerfield brand.

"This proposed agreement will allow us to concentrate our resources and capital on enhancing the performance of our refining and distribution network," said Shariq Yosufzai, president of ChevronTexaco Global Marketing. "Our customers will still receive the same high-quality fuel products they have come to expect from filling up at a Texaco-branded site and will also benefit from Somerfield's excellent fresh food and retail expertise."

The two companies will now undertake detailed discussions with the goal of finalizing the agreement, subject to all necessary approvals and following consultation with employees.

ChevronTexaco Corp. is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco conducts 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 Global Marketing is a division of ChevronTexaco Global Downstream LLC, a wholly-owned subsidiary of ChevronTexaco Corp. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at chevrontexaco.com.

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 relating to ChevronTexaco's plans for retail and wholesale refined product marketing in the United Kingdom. These statements are based on management's current expectations, estimates and projections about the petroleum industry; 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 include finalizing the sales agreement; failure to close the sale as anticipated; selling or finding an alternate use for additional company-owned stations in the United Kingdom; and general economic and political conditions. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. 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: February 2005