press release

ChevronTexaco to Sell Service Stations in Colombia to Combustibles de Colombia, S.A.

Stations Will Retain Texaco Brand; Combustibles de Colombia, S.A. and Texaco to Develop Additional Growth Opportunities

SAN RAMON, Calif., March 25, 2005 -- ChevronTexaco Global Marketing today announced that ChevronTexaco Petroleum Company, a ChevronTexaco Corporation subsidiary, has reached an agreement to sell its 15 company-owned Texaco service stations in Colombia to Combustibles de Colombia, S.A, an investment group and service station retailer. As part of this sale, Combustibles de Colombia has signed a long term supply agreement with ChevronTexaco Petroleum Company to retain the Texaco brand at these locations and work closely with ChevronTexaco Petroleum Company to develop additional growth opportunities.

This agreement is part of ChevronTexaco Global Downstream's strategy to improve returns by focusing on areas of market and supply strength. The agreement is also in line with the company's strategic direction to enhance and manage three world class brands – Chevron, Texaco and Caltex. This includes building long-term relationships with high quality retailers that will represent and continue to grow the Texaco brand in Colombia.

"This new relationship with Combustibles de Colombia will allow us to concentrate our resources and capital investments on strengthening our retailer network, building on our strong Commercial and Industrial businesses and maintaining our leading position in lubricants," said Shariq Yosufzai, President of ChevronTexaco Global Marketing. "Our customers in Colombia will continue to receive the same high quality fuel products they have come to expect from filling up at a Texaco-branded site."

Optimizing the portfolio is a key goal for Global Marketing, which will focus its investment in strategic 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 Combustibles de Colombia, S.A. in Colombia follows other recent announcements in 2005 by Global Marketing that support 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.

ChevronTexaco Corp. is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco conducts 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 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 marketing and supply activities in Colombia 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: March 2005