press release

Chevron/texaco Unit Gets Go-Ahead to Build 70-megawatt Power Plant

CHEVRON/TEXACO UNIT GETS GO-AHEAD
TO BUILD 70-MEGAWATT POWER
PLANT IN INDONESIA

SAN FRANCISCO, Jan. 17, 1996 -- Chevron and Texaco announced today that their jointly held affiliate, Amoseas Indonesia, has signed an Energy Sales Contract to build a 70-megawatt power plant in the Darajat Contract Area in western Java. Amoseas and its partner, PT Prasarana Nusantara Jaya (PNJ), will invest approximately $125 million (U.S.) in the new plant.

The Energy Sales Contract was awarded to Amoseas Indonesia by PT Perusahaan Listrik Negara (PLN), Indonesia's national power company, and by PERTAMINA, the government-owned oil company. The contract covers both construction of the new plant and additional development of Darajat's steam resources.

"Geothermal operations in Indonesia took a major step forward today," said James W. Cox, vice president of Amoseas' geothermal operations in Indonesia. Cox pointed out that the contract not only provides for construction of the 70-megawatt plant, but also allows for additional development at Darajat, which could realize future potential of as much as 275 megawatts of electricity, and the construction of up to three additional power plants. Cox noted that any future development of the area's steam resources could require additional investment of up to $500 million (U.S.) over an eight-year period.

"We will begin construction on the first plant later this year, and expect to be producing 70 megawatts of electricity by the end of 1998," said Cox. "Drilling to tap additional steam pockets will begin this spring," he noted and pointed out that Amoseas Indonesia and PNJ plan to build power plants to match the steam reserves they develop and confirm.

Darajat taps its energy from a young volcano on the "Ring of Fire," the world's most active volcanic zone which, in part, stretches along the southern coast of Sumatra and Java.

Geothermal energy is a clean, renewable energy resource which is produced when ground water descending from the earth's surface meets molten magma rising toward the earth's surface, creating steam. The steam is trapped in the earth's crust in "pockets" or reservoirs, which can be accessed by drilling a well into the reservoir, similar to the way oil and gas is produced.

Steam wells previously drilled by Amoseas Indonesia in the Darajat area currently produce steam for PLN's 55-megawatt power plant at Darajat, approximately 100 miles south of the nation's capital city, Jakarta. The plant came onstream in 1994 and generates electricity for the power transmission grid in Indonesia. Amoseas will also continue to provide steam for PLN's Darajat plant under a previously existing contract.

"Through its affiliation with PT Caltex Pacific Indonesia and its parent companies, Chevron and Texaco, Amoseas Indonesia has extensive experience in both steam handling and power generation. We are proud to be an integral part of Indonesia's energy infrastructure and are eager to begin this project to generate needed electricity to help fuel the country's economic development," said Cox.

NOTE TO EDITORS:

Darajat is operated by Amoseas Indonesia, a jointly held unit of Chevron and Texaco, which was established in 1970 to conduct oil and gas exploration and production in Indonesia, outside of the island of Sumatra.

Its sister company, PT Caltex Pacific Indonesia (CPI), another jointly held affiliate of Chevron and Texaco, has extensive operations on Sumatra, including the world's largest steamflood at the Duri oil field. Duri operations produce approximately 300,000 barrels of oil per day, utilizing steam technology to help coax the field's viscous crude to the surface. CPI produces more than 750,000 barrels of oil per day (including the production from Duri) from its fields in Central Sumatra under various production-sharing arrangements with PETAMINA.

Updated: January 1996