press release

ChevronTexaco Response to Reclassification of Shell Reserves

SAN RAMON, Calif., Jan. 9, 2004 -- ChevronTexaco today issued the following statement in response to inquiries received in connection with the January 9, 2004, announcement by Royal Dutch Shell that it will reduce its proved crude oil and natural gas reserve quantities by 20 percent:

"ChevronTexaco has a rigorous review process for determining how and when its proved reserves for crude oil and natural gas reserves are recognized. Today's announcement by Shell will not affect how ChevronTexaco's worldwide reserves are currently categorized, including Nigeria and Australia."

John Gass, President of ChevronTexaco Global Gas confirmed that the company has yet not recognized any proved reserves for its interest in the Gorgon Joint Venture natural gas development project in Australia. "Our Gorgon project continues its steady progress toward commercialization, having received in-principle approval in 2003 from the Western Australia state government for the restricted use of Barrow Island for a foundation development in 2003, and strong market support including a memorandum of understanding with the China National Offshore Oil Corporation to import Gorgon LNG into China," Gass said.

The company further indicated that it will announce its proved crude oil and natural gas reserve activity for 2003 at the time of its fourth quarter earnings announcement on January 30, 2004.

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 the progress and future development of the Gorgon Project. 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 the results of the evaluation of the options for the future development of the Gorgon Field and the Barrow Island facilities, changes in technology, local regulatory and 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 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: January 2004