press release

Chevron Press Release - Tengiz Joint Venture Hits High Safety Mark -- Tengizchevroil Employees Honored

TENGIZ, KAZAKHSTAN, Oct. 5, 1998 -- Tengizchevroil (TCO), a Kazakh-Russian-American partnership, honored employees here today for working over five million hours -- more than 300 days -- without a lost-time injury. Senior Chevron executives visiting from the U.S. added their congratulations to TCO employees in Tengiz.

Tengizchevroil is operating one of the worlds largest producing oil fields in a remote Kazakhstan location with challenging working conditions.

In a 24-hour-per-day, high-volume, high-pressure and high hydrogen sulfide (H2S) operation with weather extremes ranging between -40 degrees F to over 120 degrees F and where at least five different languages are spoken, it is a commendable accomplishment to have a zero-injury rate, said Ken Godard, general director of TCO. The TCO employees have increased production output during the last five years by 800 percent. Increases in production also increase exposures to risk, but the quality and safety of the TCO operation has never been compromised. I am extremely proud of the TCO employees and our safety performance.

The TCO partnership was created in 1993 and currently employs 3,100 Kazakh citizens -- 72 percent of the fields workforce. The Tengiz field currently produces about 210,000 barrels of oil per day (bpd). By 2001 when the Caspian Pipeline is completed, production will reach 260,000 bpd, increasing to 700,000 by 2010.

Chevron holds a 45 percent interest in Tengizchevroil. Other shareholders are the Republic of Kazakhstan (25 percent), Mobil Corp. (25 percent), and LukArco (5 percent).

Notes to editors:

Tengizs pipeline exports are currently limited by Russian pipeline quotas to about 3 million tons per year (approximately 63,000 barrels per day). In order to move the remaining oil production to market, various alternative routes and methods of selling oil have been and continue to be developed. For example, Tengizchevroil currently ships by railroad to Finland, Odessa and Feodossia; and ships by railroad through Georgia and Azerbaijan.

Updated: October 1998