First Oil Represents the Start-up of the Sanha Condensate Project

SAN RAMON, Calif., Jan. 5 -- ChevronTexaco Corp. (NYSE: CVX) today announced that its Angolan subsidiary, Cabinda Gulf Oil Company Ltd (CABGOC), has achieved first oil from the Bomboco Field in its operated Block 0 concession, offshore Malongo, Cabinda province. Bomboco is expected to reach an average daily production of 30,000 barrels of oil within the next year and is an integral component of CABGOC's Sanha Condensate project.

The Sanha processing facilities first received condensate (a valuable, light oil) from surrounding fields last month and first gas injection is expected to occur later this month. Condensate production from the Sanha field is scheduled to start early in the first quarter and first liquefied petroleum gas (a mixture of butane and propane) production from the Sanha floating production, storage and off-loading (FPSO) vessel is forecast for early in the second quarter.

Combined Sanha and Bomboco peak production of an estimated 100,000 barrels per day of oil and LPG is anticipated in 2007. Of particular importance, Sanha operations will significantly reduce gas flaring in Block 0.

Commenting on today's announcement, John Watson, president of ChevronTexaco Overseas Petroleum, said: "Bomboco first oil is an important milestone in the broader Sanha Condensate project, which will give a boost to ChevronTexaco's production in Africa -- a continent where we continue to make strong progress toward achieving our strategic growth objectives."

Jim Blackwell, managing director of ChevronTexaco's Southern Africa Strategic Business Unit, added: "ChevronTexaco and our partners are moving forward to honor our commitment to eliminate routine natural gas flaring in Block 0. The Sanha project alone will eliminate routine flaring in Area B, reducing overall gas flaring on the entire block by some 50 percent. The project will help produce and conserve gas for the future, and we think it will set the standard for future environmental conservation efforts by energy companies in Angola.

"What truly sets Sanha apart is the creativity of its concept and its complexity. The project team, contractors and suppliers have delivered the Sanha and Bomboco development projects on time, on budget and with world-class safety performance.

"I would like to acknowledge the tremendous support of our partners and the Angolan government in reaching today's milestone."

Cabinda Gulf Oil Company Ltd., with 39.2 percent, is operator of the Block 0 concession on behalf of its partners: Sociedade Nacional de Combustiveis de Angola (Sonangol), 41 percent; Total, 10 percent; and Eni Angola Exploration B.V., 9.8 percent.

ChevronTexaco Corp. is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at www.chevrontexaco.com

Notes to editors:

ChevronTexaco is the largest producer in Angola and the first to produce in deepwater. The company has an interest in four concessions adding up to approximately 4,700-square miles. During 2003 average total oil production was 550,000 barrels per day.

Cabinda Gulf Oil Company Limited is the operator of two concessions in Angola, Blocks 0 and 14. Block 14, in which CABGOC has a 31 percent interest, is a 1,580-square-mile deepwater concession located west of Block 0. A separate ChevronTexaco subsidiary, Texaco Panama Angola Limited (TEXPAN), is the operator and has a 20 percent interest in Block 2, a 160-square-mile concession adjacent to the northwestern part of Angola's coast, south of the Congo River. TEXPAN also has a 16.3 percent non-operated interest in the 600-square-mile onshore Fina Sonangol Texaco concession.

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 the significance to ChevronTexaco of the Sanha Condensate Project in Angola's Block 0 Concession. 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 the potential disruption or interruption of project activities, due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company's joint-venture partners to fund their share of project expenditures; 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 the press release. 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.

SOURCE ChevronTexaco Corp.


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