Chevron Grows Carnarvon Basin Interests In Browse Exchange

Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiary has reached an agreement to exchange its holdings in the Browse development for Shell Development (Australia) Pty Ltd’s interests in the Clio and Acme fields ¹ in the Carnarvon Basin offshore northwest Australia.

Under the agreement, subject to regulatory and other approvals, Chevron will exchange its 16.7 percent interest in the East Browse titles ² and 20 percent interest in the West Browse titles ^{3, 4} for Shell’s 33.3 percent interests in the WA-205-P and WA-42-R blocks. This will give Chevron a 100 percent interest in WA-205-P and WA-42-R. Shell will also make a $450 million cash payment to Chevron.

George Kirkland, vice chairman, Chevron Corporation, said: “Acquiring the remaining interests in WA-205-P and WA-42-R fits strategically with our long-term plans to grow our Wheatstone area resource base, and create expansion opportunities for the Wheatstone Project.”

Melody Meyer, president, Chevron Asia Pacific Exploration and Production, said: “Australia is a key focus area for Chevron, evidenced by our investment and development of the Gorgon and Wheatstone projects, and strong exploration and appraisal program. Consolidating our Carnarvon Basin position furthers our progress towards becoming a leading liquefied natural and domestic gas producer in Australia and Asia-Pacific.”

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

Notes to Editor:

¹: Shell has a 33.3% interest in the Clio-Acme titles WA-42-R and WA-205-P

²: East Browse titles are WA30R, WA31R, WA32R, WAR2 and TR5.

³: West Browse titles are WA28R, WA29R and WA275P.

⁴: Chevron will retain its interests in the following Browse basin exploration leases: WA-274-P, WA-281-P and WA-410-P

Chevron has made the previous natural gas discoveries in the Clio and Acme fields:

• Acme West-1 and -2: News Release
• Acme -1: News Release
• Clio-3: News Release
• Clio-2: News Release
• Clio-1: News Release

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 Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," “forecasts,” "projects," "believes," "seeks," “schedules,” "estimates," "budgets," “outlook” and similar expressions are intended to identify such forward-looking statements. 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. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations, industry-specific taxes and changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; and general economic and political conditions. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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