press release

ChevronTexaco posted the following statement today in response to a news release issued by Tengizchevroil in Kazakhstan on Saturday, Jan. 25.

ChevronTexaco confirmed on Monday, Jan. 27, that the partners of Tengizchevroil (TCO) have reached an agreement that enables Tengizchevroil to move ahead with the expansion of the Tengiz field. TCO partners are immediately lifting the suspension and reactivating expansion of TCO's Second Generation and Sour Gas Injection Projects (SGP/SGI).

The expansion project was suspended late last year while the partners developed a means for funding.

Peter Robertson, vice chairman, ChevronTexaco said, "Over the last few months, the TCO partners worked hard to find a mutually agreeable solution. As a result of these discussions, and consistent with the principles outlined in the TCO Formation Agreement, we were able to agree on a funding plan that would support TCO expansion and at the same time, provide for the diverse financial needs of all of the partners. ChevronTexaco continues to have a strong and long term commitment to Kazakhstan as demonstrated by our ten years of investing about four billion dollars in a wide variety of assets throughout the country."

Robertson added, "Our current operations at TCO are running extremely well and continue to add significant value to the Republic of Kazakhstan and to all the TCO partners. We believe the SGP and SGI expansion projects will further build on this success and result in additional investments of well over three billion dollars, bringing significant financial and economic benefits to Kazakhstan."

"This agreement, as it is implemented, will provide a very positive statement about Kazakhstan's investment climate and its outlook for continued growth and prosperity," said Robertson.

Tengizchevroil is a joint venture partnership of ChevronTexaco (50 percent), ExxonMobil (25 percent), Kazmunaigaz (20 percent) and LukArco (5 percent), in developing the Tengiz oil field in Kazakhstan.

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

This press release of ChevronTexaco Corporation contains forward-looking statements relating to ChevronTexaco's operations and investments in Kazakhstan that are based on management's current expectations, estimates and projections about the petroleum. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. 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. 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 report. 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.

Among the factors that could cause actual results to differ materially are crude oil and natural gas prices; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of TCO and its owners; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected production from existing and future oil and gas development projects; potential delays in the development, construction or start-up of planned projects; potential disruption or interruption of the production or manufacturing facilities due to accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment under existing or future environmental regulations; and potential liability resulting from pending or future litigation. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

Updated: January 2003