press release

Chevron Press Release - Tengizchevroil Employees Sustain Safety Performance

(This press release was issued by Tengizchevroil on December 22, 1999)

Tengizchevroil (TCO) reached a really outstanding milestone in its safety performance on 22 December by achieving 6 million hours without a lost-time injury. This also surpasses TCOs own recent record of one full year without a loss work day incident reached on December 11. This is a world class accomplishment, and puts TCO in the upper echelon of safety performance for oil producing operations anywhere in the world.

"This is truly a milestone achievement for an organization of TCOs size and complexity!" says Ken Godard, TCO General Director. I am also aware, that several organizations within TCO have recently completed more than two years without a loss workday incident. We should all be very proud of our accomplishment. Such achievements do not occur without dedication and commitment from each and every employee."

The new record is very significant as setting a benchmark for the new millennium and also closing a very important year for Kazakhstan marking the centennial of national oil industry with a brilliant result.

"Safety is our focus every day, and setting new standards in long term performance is recognition that our efforts are successful. There is yet room and the commitment for further improvement and development of our safety management system, which will benefit our employees, their families and our shareholders investment," says Sandy Cornelius, TCO General Manager, Operations.

TCO produced 8.46 million metric tons/year (184,000 barrels/day) of crude oil in 1998.

Production reached a new record in June 1999 of 27,309 metric tons/day (217,000 barrels/day) average for the month. In August 1999, TCO established a new record for total monthly production volume of 844,509 metric tons (6,713,847 barrels). TCO is on track for reaching a 1999 production target of 9.5 million metric tons.

By mid-2000, TCO expects to complete the Train 5 Project, which will boost average production rates to about 33,250 metric tons/day (265,000 barrels/day). Over the next several years TCO plans to invest more than $2 billion to increase production capacity to over 17 million metric tons/year (370,000 barrels/day). (Conversion rate is 7.95 barrels = one metric ton).

Joint venture Tengizchevroil employs 3,100 Kazakh citizens - 72 percent of the companys workforce.

The partnership was created in 1993 as a joint venture. Chevron holds a 45 percent interest. Other shareholders are the Republic of Kazakhstan through Kazakhoil (25 percent), Mobil Corp. (25 percent) and LukArco (5 percent).

December 22, 1999

Updated: December 1999