November 14, 2002 -- ChevronTexaco Posted the Following Statement: ChevronTexaco Confirms that Tengizchevroil Suspends Second Generation (SGP) and Sour Gas Injection (SGI) Projects
SAN FRANCISCO, Calif., Nov. 14, 2002 -- ChevronTexaco confirmed today that Tengizchevroil (TCO) in Kazakhstan has suspended the planned expansion of TCO's Second Generation and Sour Gas Injection Projects (SGP/SGI). We are disappointed that TCO partners have not yet been able to agree on a funding plan that would support TCO expansion plans while at the same time provide for the diverse financial needs of the partners.
"The TCO partners failed to sanction the projects moving to the next stage in our capital management process and therefore we had no option but to suspend all activity at this time," said Peter Robertson, vice chairman, ChevronTexaco. "However, we remain open to working with our partners toward a mutually agreeable solution to the funding issue. We have a long term commitment to Kazakhstan and we are pleased that current operations at TCO are running extremely well, continuing to add significant value to the Republic of Kazakhstan and to all the TCO partners. The TCO expansion projects have the potential to further build on that success, assuming we can achieve agreement on a funding plan that is consistent with principles outlined in the TCO Formation Agreement."
Tengizchevroil is a joint venture partnership of ChevronTexaco (50 percent), ExxonMobil (25 percent), Kazmunaigaz (20 percent) and LukArco (5 percent), in developing the Tengiz oil field in Kazakhstan.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
This posting contains forward-looking statements about the company's equity affiliate, Tengizchevroil, operating in Kazakhstan that are based on management's current expectations, estimates and projections. 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 these forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this posting. 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: November 2002