Chevron Announces Green Light for Multi-Billion Dollar Gas Project in Thailand

Chevron Corporation (NYSE:CVX) today announced that the company and its partners have given the green light to construct the Platong Gas II natural gas project in the Gulf of Thailand. Total development cost of the field is approximately $3.1 billion with startup scheduled for first quarter 2011. The Platong Gas II development, located in shallow water, 120 miles (200 km) offshore, is designed to add 420 million cubic feet of natural gas per day processing capacity. The project feeds the growing demand for gas in the domestic market. Chevron is operator and holds a 69.8 percent participating interest with Mitsui Oil Exploration Co. Ltd. (27.4 percent) and PTT Exploration and Production Public Co. Ltd. (2.8 percent). "The Asia-Pacific region is poised to become the world’s most significant oil and gas consumer, with demand forecasted to grow by about 90 percent by 2030,” said Jim Blackwell, president of Chevron Asia Pacific Exploration and Production Co. "Chevron is well positioned with a robust queue of major projects across the region to help satisfy future demand. "The Platong Gas II project alone has the potential to satisfy 14 percent of the natural gas used for power generation in the Kingdom. Platong Gas II is a milestone that builds on the 45-year relationship between Chevron and the Kingdom of Thailand,” said Blackwell. Tara Tiradnakorn, president of Chevron Thailand Exploration and Production, added, "Platong Gas II is a world-class natural gas project that will generate new jobs and revenue for the Kingdom, as well as provide a future source of energy for the Thai people and industry for decades to come.” Chevron recently signed an agreement with the Ministry of Energy of Thailand to increase its daily contract quantity of natural gas by 500 million cubic feet to 1.2 billion by 2012 from company-operated offshore blocks 10, 11, 12 and 13. Platong Gas II is expected to be the major source of this increase in production. In October 2007, the company received ten-year lease extensions until 2022 for blocks 10 through 13. Chevron has ownership interests in these blocks ranging from 60 percent to 80 percent. Chevron operates more than 195 platforms in the Gulf of Thailand with 2007 total average daily production of 138,000 barrels of oil and condensate (71,000 net) and 1.7 billion gross cubic feet of gas (916 million net). Chevron Corporation is one of the world’s leading integrated energy companies with subsidiaries that conduct business across the globe. The company’s success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products and services; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com. 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 Thailand. Words such as "anticipates,” "expects,” "intends,” "plans,” "targets,” "projects,” "believes,” "seeks,” "estimates,” "budgets” 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 factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You 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.