press release

ChevronTexaco Sells Fuel Business In Peru to Peruana de Combustibles S.A.

SAN RAMON, Calif., April 1, 2005 -- ChevronTexaco Global Marketing today announced that ChevronTexaco Petroleum Company and ChevronTexaco Global Energy Inc., both ChevronTexaco Corporation subsidiaries, have completed an agreement with Peruana de Combustibles S.A. (PECSA) to sell their fuels marketing business including company-owned Texaco service stations in Peru.

This agreement is part of ChevronTexaco's downstream strategy to improve returns by focusing on areas where it has a competitive supply position and strong brand recognition for its three world class brands – Chevron, Texaco and Caltex. ChevronTexaco will continue to serve Peruvian consumers through its strongly positioned and growing lubricants business conducted by Lubricantes y Grasas ChevronTexaco del Peru S.R.L.

"This agreement will allow us to concentrate our resources and capital to drive efficiencies and enhance our competitive position in strategic markets," said Shariq Yosufzai, president of ChevronTexaco Global Marketing.

Optimizing the portfolio is a key goal for ChevronTexaco Global Marketing, which will focus its investments in preferred markets through world-class capital stewardship skills. Network planning and market prioritization processes are guiding decisions on where ChevronTexaco markets and grows its brands.

The agreement with PECSA follows other recent announcements in 2005 by Global Marketing that supports this strategy:

  • A preliminary investment agreement by Caltex South China Investments Limited (CSCIL) and CITIC Resources Holdings Limited (CITIC) to expand the Caltex network in South China.
  • A proposed agreement where Texaco Limited would sell 140 Texaco stations to Somerfield, the fifth largest food retailer in the UK while continuing to supply Texaco branded fuel to the service stations.
  • An agreement by ChevronTexaco Petroleum Company to sell its 15 company-owned Texaco service stations in Colombia to Combustibles de Colombia, S.A.

ChevronTexaco Corp. is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco subsidiaries conduct 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 www.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 the sale of ChevronTexaco's fuels marketing business in Peru and the company's global downstream strategic direction. 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 include the demand for and supply of refined petroleum products: refining and marketing margins; significant investment or product changes under existing or future environmental regulations (including regulations dealing with the composition and characteristics of fuels); and general political and 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: April 2005