press release

ChevronTexaco Tahiti Well Test Exceeds Expectations

Production rate could be as much as 30,000 barrels per day

HOUSTON, Oct. 19, 2004 -- ChevronTexaco announced today that a test of its Tahiti discovery well, Green Canyon 640 No. 1 in the Gulf of Mexico, indicates that production from this well could be as much as 30,000 barrels of oil per day (bpd). This exceeds pre-test estimates and indicates that Tahiti will be a significant contribution to the company's deepwater production.

The well's peak rate during the production test reached 15,000 bpd, a level that had been set as a pre-test maximum due to safety and equipment limitations. Early analysis of the rate and pressure data collected during the test indicates that the well's capability exceeds the pre-test expectation of 25,000 bpd.

"The results of this well test are very positive for our Tahiti Field development plans," said Ray Wilcox, vice president of ChevronTexaco Corp. and president of ChevronTexaco Exploration & Production Co. "Tahiti is a key asset in our deepwater portfolio, and these test results serve to reinforce our efforts around finding significant new oil resources in the Gulf of Mexico."

On April 1, 2002, Tahiti was announced as a significant discovery with a net pay zone of more than 400 feet. Subsequent appraisal drilling resulted in one of the most significant net pay accumulations in the history of the Gulf of Mexico with one well encountering more than 1,000 feet of net pay in high-quality sandstone. The appraisal program also confirmed that the reservoir in Tahiti spreads over a distance of three miles.

"The well test was successfully completed in early September 2004 in 4,100 feet of water and at 25,812 feet subsea," said Kathleen Arthur, vice president of ChevronTexaco's Gulf of Mexico Deepwater business unit. "This makes it the deepest successful well test in the history of the Gulf of Mexico, which is even more significant because it is in a high-pressure environment."

Based on the successful well completion, which required some enhancements to existing technology, and the positive test results, the project development can move forward with greater confidence. Fluid samples, dynamic well data and reservoir property information acquired during the test are essential components of the design for the Tahiti Project.

ChevronTexaco announced on April 15 this year that two major engineering contracts had been awarded for the development of the Tahiti Project's subsea systems and floating production facility. That work is well under way and on schedule.

ChevronTexaco is the operator of the Tahiti Project with a 58 percent working interest. Tahiti partners are EnCana Gulf of Mexico LLC (25 percent working interest) and Shell Gulf of Mexico Inc. (17 percent working interest).

Currently celebrating its 125th anniversary, ChevronTexaco is one of the world's leading energy companies. With more than 50,000 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 www.chevron.com.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF L995.

Some of the items discussed in this press release are forward-looking statements about the development of the Tahiti well, estimated future production from the well and the significance of the well to ChevronTexaco's deepwater portfolio in the Gulf of Mexico. 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 demand for and prices of crude oil and natural gas, results of additional drilling and evaluation of development alternative, local 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: October 2004