press release

ChevronTexaco Makes New Discovery in Deepwater Gulf of Mexico

SAN RAMON, Calif., Oct. 9, 2003 -- ChevronTexaco today announced a new deepwater oil discovery at the Sturgis Prospect located in Atwater Valley block 183. The block is located approximately 150 miles southeast of New Orleans.

The Sturgis #1 well is located in approximately 3,700 feet of water and was drilled to a depth of 25,005 feet on July 1, 2003, using the Glomar Explorer drilling vessel. The exploratory well encountered more than 100 feet of net pay sands. A subsequent side-track was drilled to a depth of 27,739 feet.

"Successful conclusion of this operation is the latest in a series of successful deepwater drilling results," said Ray Wilcox, vice president of ChevronTexaco and president of ChevronTexaco Exploration and Production Co. "Our Gulf of Mexico deepwater program has contributed significant value to ChevronTexaco and our joint-venture partners," Wilcox added.

"Our success with deepwater projects is facilitated by applying innovative seismic techniques and using the latest technology to safely drill and produce," said Kathleen Arthur, vice president of ChevronTexaco's Gulf of Mexico deepwater business unit.

Further appraisal drilling is planned at the Sturgis Prospect to determine the extent of the discovery.

ChevronTexaco is the operator of the Sturgis Prospect with a 50 percent working interest. Sturgis partners are Devon (25 percent working interest) and EnCana Gulf of Mexico (25 percent working interest).

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the discovery at the Sturgis Prospect. The statements are based upon 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 decisions by the partners about future appraisal drilling, results of appraisals, local political events and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the 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: October 2003