press release

Sonangol and ChevronTexaco Announce Key Agreements for the Angola LNG Project

JOINT NEWS RELEASE

Issued by ChevronTexaco and Sonangol

LUANDA, Angola, March 10, 2005 -- Project co-leaders Sonangol and Cabinda Gulf Oil Company, a subsidiary of ChevronTexaco, and their co-venturers BP, ExxonMobil and Total in the Angola LNG Project today announced that agreements have been signed to establish the principles for gas supply, corporate structure, and legal and regulatory framework for the Project.

The agreements, which support the commencement of Front-End Engineering and Design studies, were reached thanks to the strong collaboration between the Government of Angola and the Project co-venturers.

Commenting on today's announcement, Angola's Minister of Petroleum, Desidério Costa, said, "This is a significant step forward on a project of national importance. We strongly believe that the Angola LNG Project will serve as a catalyst for Angola's reconstruction and growth by facilitating increased production of the nation's abundant oil and gas resources and by supplying natural gas for local industrial development. By providing a viable alternative to the flaring of associated gas, Angola is also demonstrating environmental leadership in the way in which it is developing its energy resources."

Manuel Vicente, President of the Administration Council of Sonangol E.P., speaking as Concessionaire for hydrocarbon licenses in Angola, noted his expectations of the impact Angola LNG will have on petroleum activities in the country, saying "The LNG Project is critical to Angola's objectives of expanding the petroleum sector. This development will unlock further exploration and production potential in the country, will improve Angola's earnings, and will develop and demonstrate Angola's attractiveness to foreign investors interested in gas industry-related opportunities here."

On behalf of the Project co-venturers, Jim Blackwell, Managing Director of ChevronTexaco's Southern Africa Business Unit, based in Luanda, said, "We believe the establishment of the gas supply agreements and a mutually beneficial corporate structure are significant milestones, which demonstrate our continued commitment to this Project and to Angola. A reduction in gas flaring will be good news for the environment but, in addition to its environmental benefits, the Angola LNG Project will also unlock the commercial and strategic value of Angola's vast natural gas resources for the benefit of the country, its people, and the Project co-venturers.

"The Project will offer additional benefit to Angola through direct investment and opportunities for Angolan manpower, suppliers of materials and equipment, and contractors to contribute to the Project," added Blackwell. "We sincerely appreciate the support of the Ministry of Petroleum and the Government of Angola — in particular, for their work to foster a growth oriented framework. We now look forward to their continued cooperation in quickly implementing these measures in order to maintain our Project schedule and to allow the Project to capture available market opportunities to support this magnitude of investment."

Planned as an integrated gas utilization project encompassing offshore and onshore operations to commercialize gas resources and reduce gas flaring from blocks located offshore of Angola, the Angola LNG Project is set to be a joint development between the state oil company of Angola — Sonangol (22.8%) — and affiliates of ChevronTexaco (36.4%), BP (13.6%), ExxonMobil (13.6%), and Total (13.6%). ChevronTexaco and Sonangol are co-Project leaders.

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 planned development of the Angola LNG Project. 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. 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