press release

ChevronTexaco Signs Purchase and Sale Agreement with Duke Energy Field Services for the Discovery Pipeline System

Sale Mandated in U.S. Federal Trade Commission Consent Order,

SAN FRANCISCO, March 21, 2002 -- ChevronTexaco (NYSE: CVX) today announced that it has signed an agreement to sell its 33.3 percent interest in the Discovery Pipeline System to Duke Energy Field Services. The transaction is expected to close during the second quarter of 2002. Financial details of the agreement were not disclosed.

The divestiture was mandated in a consent order by the U.S. Federal Trade Commission as a condition of approving the merger between Chevron and Texaco, which closed on Oct. 9, 2001. ChevronTexaco agreed to divest Texaco's interest in the Discovery Pipeline System within six months of the merger date.

The sale is subject to FTC approval. On March 12, the FTC opened a 30-day public comment period on the proposed transaction.

The Discovery Pipeline System is a natural gas gathering and processing system that includes a pipeline in the Gulf of Mexico and natural gas processing and fractionation facilities in Louisiana.

Based in San Francisco, ChevronTexaco Corp. is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 ChevronTexaco employees work in approximately 180 countries around the world, producing oil and natural gas and marketing fuels and other energy products.

Updated: March 2002