Chevron Moves Wheatstone Project in Australia Closer to Commercialization

Chevron Corporation (NYSE:CVX) today announced the award of a major front-end engineering and design (FEED) contract for the first phase of the Wheatstone natural gas development in northwest Australia.

Chevron awarded the contract for the first phase of the project – which consists of two liquefied natural gas (LNG) processing trains each with a capacity of about 4.3 million tons per year and a domestic gas plant – to Bechtel Oil, Gas & Chemicals, Inc. The facility will be supplied initially from Chevron’s 100 percent interest in the Wheatstone Field and the Chevron-operated Iago Field.

The facility will be located at Ashburton North on the mainland of Western Australia.

“Awarding the contract moves the Wheatstone project a step closer to commercialization, assists in realizing our strategy of developing our large natural-gas resource base in Australia and further enhances our position as a leading supplier of LNG in the Asia-Pacific region and internationally,” said George Kirkland, executive vice president, Global Upstream and Gas, Chevron Corporation.

“We are committed to moving forward our two big Australian LNG projects – Wheatstone and the Gorgon development,” Kirkland said.

Chevron expects to make a final investment decision on the Wheatstone project in 2011.

Discovered in 2004, Chevron’s Wheatstone Field is located in the WA-253-P and WA-17-R permit areas in water depths of around 650 feet (200 meters). The adjacent Iago Field was discovered in 2000 and spans two retention permits, WA-17-R, which is wholly owned by Chevron Australia, and WA-16-R, which Chevron has a majority interest. Together, these fields hold enough natural gas to supply a two-train LNG development.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of approximately 62,000 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 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 Australia. 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; timely development of the field; 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.