press release

ChevronTexaco Partners With CITIC Resources to Expand Caltex Retail Operation In China

SAN RAMON, Calif., Jan. 13, 2005 -- ChevronTexaco Global Marketing today announced that Caltex South China Investments Limited (CSCIL) and CITIC Resources Holdings Limited (CITIC) have entered into a preliminary agreement in which CITIC has agreed to invest a majority stake in CSCIL. The transaction, subject to CITIC shareholders approval, is a significant step in growing Caltex's retail fuel business in South China.

This preliminary agreement is part of ChevronTexaco's strategic direction to focus on enhancing and managing three world class brands – Chevron, Texaco and Caltex. As part of this strategy, Caltex is engaging with local partners such as CITIC to grow its presence in the burgeoning China market. Currently, China has the fastest growing automobile market in the world with double-digit growth expected over the next several years.

"The growing demand for energy in China and the liberalization of the Chinese economic market are creating opportunities for investment in South China and other Chinese provinces through various kinds of partnerships," said Shariq Yosufzai, president of ChevronTexaco Global Marketing. "Partnering with a major business leader like CITIC will allow us to expand our retail network in the world's fastest growing economic region while exploring growth opportunities in commercial and industrial segments."

CSCIL currently operates a network of more than 40 Caltex-branded service stations in South China through a number of joint venture partnerships. The company is committed to offering superior service as well as quality fuel products to motorists in China. The new venture will further enable more motorists to enjoy the pre-eminent service and products in Caltex's bigger and growing retail network.

ChevronTexaco Corp. was among the first multinational oil companies to develop a full range of upstream opportunities including exploration and development projects in South China Sea, Bohai Bay and Ordos Basin, supplying Liquefied Natural Gas through the North West Shelf Venture. It was also among the first multinational oil companies to develop downstream opportunities in China, such as the operation of a world-class LPG terminal, and the marketing and distribution of fuel products, lubricants and asphalts.

CALTEX SOUTH CHINA INVESTMENTS LIMITED IS A JOINT VENTURE BETWEEN CALTEX (ASIA) LIMITED AND STAR CONCEPT HOLDINGS LIMITED.

Caltex (Asia) Limited, a wholly-owned subsidiary of ChevronTexaco Corp., is among the first foreign oil companies to set up retail outlets in China. Caltex South China Investment Limited established its first service station in Shenzhen in 1982 and has grown a network of more than 40 outlets in South China including stations in the Guangdong province, Macau SAR and Fujian. Most of its service stations offer 24-hour service and are equipped with convenience stores to meet the market needs.

ChevronTexaco Global Marketing is a division of ChevronTexaco Global Downstream LLC, a wholly-owned subsidiary of ChevronTexaco Corp.

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 marketing and distributing fuels and other energy products. 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.

Some of the items discussed in this press release are forward-looking statements about ChevronTexaco's plans and strategies. 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 changes in conditions affecting supply and demand for refined products; the competitiveness of alternate product substitutes; inability or failure of the company's joint-venture partners to fund their share of project expenditures; changes in government regulation in areas where the company operates; and general economic, social and political 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: January 2005