press release

Peru Accepts Chevron Bid to Explore 1.77-Million Acre Tract


SAN FRANCISCO, July 17, 1995 -- Chevron Overseas Petroleum (Peru) Limited announced today that its bid proposal covering more than 1.77 million exploration acres on Block 52 in the Peruvian highlands was accepted by the Board of Directors of Perupetro S.A., the state-owned oil company. Chevron's bid will now be submitted to the Peruvian government for issuance of a Supreme Decree.

Block 52 is located 250 miles east of the capital city of Lima and is adjacent to the giant Camisea gas/condensate discoveries. It comprises 718,928 hectares (more than 1.77 million acres), and has had no previous exploration activity.

"We are delighted at being granted the opportunity to explore in such an exciting area," said Richard Matzke, president of Chevron Overseas Petroleum. "We are eager to return to Peru and particularly eager to begin operations in this area which, in our opinion, holds excellent potential because of its proximity to and similar geology of the prolific Camisea fields."

Chevron's exploration program will include a seismic program and other geologic studies and is anticipated to start in the fall. Following accumulation and interpretation of the geologic and seismic data collected, determinations regarding drilling will be made.

Chevron's history in Peru dates back to the 1930s when the company conducted geological exploration in the foothills of the Andes. In addition, Chevron operated a refinery in Conchan, Peru, until 1969.

Matzke lauded the Peruvian government's newly revised hydrocarbon laws and noted that they have enhanced the appeal of operating in Peru by offering favorable terms and encouraging foreign investment in the country.

Updated: July 1995