Chevron Announces Agreements to Develop the Hebron Heavy Oil Project Offshore Newfoundland and Labrador

Wednesday, August 20th 2008

Chevron Canada Limited, a wholly owned subsidiary of Chevron Corporation, today announced on behalf of itself and its co-venturers the completion of legal agreements with the Government of Newfoundland and Labrador to develop the Hebron heavy oil project offshore the East Coast of Canada.

The Hebron field is located 340 km offshore the province of Newfoundland and Labrador in 92 metres of water. Discovered in 1981, the field is expected to be developed using a gravity-based structure with integrated drilling and production topsides. Hebron contains an estimated 400 to 700 million barrels of recoverable oil.

“The execution of these formal binding agreements with the Government of Newfoundland and Labrador represents a major milestone toward the successful development of the Hebron Project,” said Mark Nelson, president, Chevron Canada Limited.

“The Hebron Project is key to our Canada growth strategy and is one of many projects in our global portfolio that will allow us to grow our reserves and production,” said Nelson. “Moreover, Chevron Canada is also pursuing long-term growth through the development of legacy assets in the Alberta oil sands and Northern Canada.”

“We congratulate the province of Newfoundland and Labrador on reaching these agreements and look forward to working with them as a partner in successfully executing this world-class energy project,” said James Bates, vice president, asset development, Chevron Canada Limited, and Chevron’s lead negotiator.

“Chevron’s participation in the Hebron Project gives our company a strategic platform for growth on the East Coast of Canada, where we are exploring for impact-sized resources in the Orphan Basin and have a major financial interest in the Hibernia offshore oil project,” said Bates.

Chevron Canada Limited has a 26.63 percent working interest and is operator of the Hebron Project. The other partners are ExxonMobil Canada Properties (36.04 percent), Petro-Canada (22.73 percent), StatoilHydro Canada Oil & Gas Inc. (9.7 percent) and Oil and Gas Corporation of Newfoundland and Labrador (4.9 percent).

Chevron Canada Limited is actively engaged in oil and gas exploration and production activities in Atlantic Canada, Northern Canada and the Alberta oil sands. Chevron Canada has been a key player in Canada’s energy industry for 70 years and is committed to supporting the growth of Canada’s energy future as a partner of choice with governments, regulators and communities. More information about Chevron Canada Limited is available at www.chevron.ca.

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; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; 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.