August 4, 2003

ChevronTexaco signs LNG MOU
ChevronTexaco Corp. today announced that an affiliate had signed a Memorandum of Understanding (MOU) with the Gorgon Joint Venture in Australia for the supply of Liquefied Natural Gas (LNG) for distribution to markets on the West Coast of North America.

Under terms of the MOU, a ChevronTexaco affiliate will enter into negotiations, the details of which are confidential, with the Gorgon Joint Venture which could lead to the supply of at least 2 million tonnes of LNG annually over a 20-year period, beginning in 2008.

The Gorgon gas field, located offshore Western Australia, has certified proven hydrocarbon reserves of 12.9 trillion cubic feet (Tcf), with total natural gas resources in the Greater Gorgon Area exceeding 40 Tcf. The Gorgon Joint Venture participants include ChevronTexaco (4/7th interest and operator), Shell (2/7th interest) and ExxonMobil (1/7th interest).

"Growing North American demand for natural gas is widely projected to outstrip supply capabilities," said John Gass, president of ChevronTexaco Global Gas, which coordinates the company's worldwide natural gas businesses. "The Gorgon Joint Venture is well positioned to help satisfy natural gas demand in both the West Coast of the United States and Mexico."

ChevronTexaco is currently seeking approvals to permit the construction and operation of an LNG terminal and regasification facility offshore Baja California which would be capable of receiving Gorgon LNG. "We believe the world-class Gorgon gas field and the significant natural gas resources in the Greater Gorgon area are ideally situated to meet growing demand in the Asia Pacific Basin," Gass said. "Development of these resources is a key element of our strategy to commercialize our equity resource base by targeting North American and Asian markets."

Separately, ChevronTexaco is currently engaged in permitting another LNG import terminal facility offshore Louisiana in the Gulf of Mexico, and is evaluating additional sites suitable for the importation of LNG to North America.

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