press release

Minister Issues State Environmental Conditions for the Gorgon Project

PERTH, Western Australia, Sep. 7, 2007 -- Chevron Australia as operator for the Gorgon Project today received advice received from the West Australian Minister for the Environment, that he had issued state environmental conditions for the Gorgon Project.

Colin Beckett, Chevron Australia General Manager for the Greater Gorgon Area, welcomed the announcement noting that the conditions were some of the most stringent imposed on a major project anywhere in the world.

"The Minister's decision to issue state environmental approval for the Gorgon development proposal is an important project milestone," Mr Beckett said.

"We have always believed that the Gorgon Project can be developed in a way that continues to protect the conservation values of Barrow Island while generating significant economic benefits.

"Since initiating the environment approvals process in 2003, the Gorgon Joint Venture has conducted extensive community consultation, incorporated a wide range of local and global scientific expertise and built upon the environmental experience Chevron Australia has gained from the operations of Australia's largest and oldest onshore oilfield on Barrow Island for more than 40 years.

"Chevron, ExxonMobil and Shell are committed to progressing the Gorgon Project on Barrow Island and are aligned on the way forward. Given the Project's importance, the current high cost construction environment and the need to be internationally competitive, we are doing as much work as possible to ensure this valuable Australian gas resource is developed responsibly, effectively and efficiently.

"The detail of final government environmental approvals for the Gorgon Project will be incorporated into our current work on engineering and design, risk mitigation and long-term resource planning," said Mr Beckett.

The Gorgon Project is globally significant with an estimated resource base of more than 40 trillion cubic feet of gas and a nominal development life of around 60 years. It is operated by the Australian subsidiary of Chevron in a joint venture with Australian subsidiaries of ExxonMobil and Shell.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

This press release of Chevron Australia Pty Ltd contains forward-looking statements relating to the Gorgon Joint Venture's plans for the Gorgon Project that are based on current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "expected," "believed," "estimated" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, the Participants undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are crude oil and natural gas prices; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the inability or failure of the Participants to fund their share of operations and development activities; potential delays in the development, construction or start-up of the project; the potential disruption or interruption of the project development due to accidents, political events, or severe weather; the effects of future environmental statutes, regulations, litigation and rulings; the potential liability resulting from pending or future litigation; acquisition or disposition of assets; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or restrictions on scope of the Participants' operations; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and other factors such as local and international economic and political conditions. Unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources," "resource base," among others, may be used in this press release to describe the Gorgon Project that are not permitted to be used in filings with the SEC.

Updated: September 2007