press release

Tengizchevroil Given "Green Light" for the Second Generation and Sour Gas Injection Projects

This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, Tengizchevroil on Saturday, Jan. 25, in Kazakhstan, and archived here for record purpose.

Tengizchevroil is pleased to announce that its Partners have approved funding for the detailed engineering and construction of the Second Generation (SGP) and Sour Gas Injection Projects (SGI). These two projects will increase Tengizchevroil's oil production capacity from the current rate of 13 million tonnes per year to between 20 and 23 million tonnes per year. The two projects are expected to be completed mid 2006 and will provide significant benefits to the Republic of Kazakhstan during project execution and after their completion.

The project teams are developing plans to advance the projects and will be remobilizing employees, contractors and vendors in line with these plans. Initial activities will be focused on areas critical to achieving the cost and schedule targets.

The projects have nearly reached 5 million safe man-hours to date. A key focus in the projects will continue to be ensuring that safety is not compromised in anyway.

These projects will provide a significant benefit to Tengizchevroil, the Atyrau Oblast, and the Republic of Kazakhstan. The projects forecast expenditures in the range of $550 - $750 million for goods and services from Kazakhstan as a direct result of the project. Employment of personnel from Kazakhstan is expected to reach near 7,000 workers on site, and more in Kazakhstan engineering, design, and equipment manufacturing locations. Other benefits of the project include establishing a project office in Atyrau with a Kazakhstani engineering staff, and construction craft training centers in Atyrau and Kulsary to develop the additional project manpower needed for a project of this scale. The largest contract to date for the project has been awarded to an all Kazakh company for construction of the "Shanyrak" Camp in Tengiz, intended to initially house construction workers for SGP/SGI and then to be available for the Operations personnel at SGP/SGI startup.

In addition to increased crude oil production, SGP will also increase production of associated dry gas, propane, butane and saleable sulfur products. The SGI project will increase oil production and will develop state-of-the-art gas injection technology for enhancing oil recovery by injecting produced sour gas to maintain reservoir pressure.

Tengizchevroil is a joint venture partnership of ChevronTexaco (50 percent), ExxonMobil (25 percent), KazMunaiGas (20 percent) and LukArco (5 percent).

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 made by the company's equity affiliate, Tengizchevroil (TCO), operating in Kazakhstan that are based on TCO's 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: January 2003